Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 300,000 shares of stock at $35 per share.

a. What is the amount of economic investment that has resulted from BBQ?s actions?

b. How much purely financial investment took place? .

a) 19.5 million

b) $10.5 million

Explanation:

a) Since BBQ builds 15 new restaurants at a cost of $1 million per restaurant, The total cost for building restaurants = 15 × $1 million = $15 million

BBQ spends $300000 on equipment and furnishings for each restaurant. Therefore, total money spent on equipment and furnishings = $300000 × 15 = $4.5 million

The amount of Economic investments = The total cost for building restaurants + total money spent on equipment and furnishings = $15 million + $4.5 million = $19.5 million

b)  BBQ issues and sells 300,000 shares of stock at $35 per share.

Therefore, the purely financial investment = $35 per share × 300000 shares = $10.5 million

answer; (identity theft);

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know