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It is desirable to operate enterprise funds at a profit?
Unlike the service funds, it is frequently desirable for enterprise funds to operate at a profit (increase in net assets). Like commercial business, operating profits are necessary to establish adequate working capital, provide for expansion of physical activities, and retire debt. Additionally, governments may find it desirable to use enterprise fund profits to support general government expenditures that would otherwise require increased taxes.
What happens to resources when a pure monopoly is at the profit maximizing output?
The economy is at equilibrium as both government suffer insufficient funds
Where does the money come from when you borrow from a bank?
When you borrow money from a bank, the money comes from the bank's deposits and reserves, which are funds that the bank holds from its customers and other sources. The bank uses these funds to lend to borrowers, charging interest on the loans as a way to make a profit.
Explain the difference between an investor and a creditor of a business?
A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.
How would the use of eftpos by a retail business improve its productivity?
Since the funds are transferred immediately from the customer to the retailer, the retailer doesn't have to wait for the money to clear the banking system. This means the retailer will have more cleared funds at their disposal - meaning they can use the funds to buy more stock - giving the customer more choices. Hopefully that would lead to customers spending more money - making more profit for the business.
