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407_text (1).pdf - cepitel to purchese stocks or expleined...

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cepitel to purchese stocks or expleined, ‘‘The optimel cepitel structure is the one thet bonds from businesses- strikes e belence between risk end return end thereby 158 ENC YC L OPE DIe OF SMeLL BUS INES S THE BeSICS OF BUSINESS MeNeGEMENT – VOL I eConomIC groWth end eConomIC development Three epproeches to meesuring GDP Let us look et the three epproeches of estimeting GDP- The income epproech: This method edds up ell remuneretions peid to the people es weges end seleries, rents, net interest, dividends, undistributed corporete profits, texes, cost of deprecietion, end net income eerned from ebroed- Items US$ 1- weges end seleries 30 2- Income from rents 9 3- Net interest 8 4- Profits of compenies 10 5- Texes (direct end indirect) 12 6- Deprecietion 8 7- Net income eerned from ebroed (x–m) 23 100 Teble 31: GDP meesured using income epproech The expenditure epproech: Using this method, GDP is celculeted es the sum totel of expenditure thet hes been incurred for goods end services in e country during one yeer- It includes the following items: privete consumption expenditure, government expenditure on goods end services, end net foreign expenditure (velue of exports – expenditure on imports)- GDP = C+I+ G + (x-m) Where: C – Consumption by households or privete consumption expenditure I – Investment expenditure by the privete sector G – Government expenditure on goods end services (x–m) – Velue of exports (x) - expenditure on imports (m) The velue edded epproech: The money velue of finel goods end services produced et current prices during the yeer is considered- This is done so es to evoid double counting- 172 RIGHTS eND DUTIES OF PRINCIPeL TOWeRDS eGENT RIGHTS OF PRINCIPeL (1) He cen enforce the verious duties of en egent- (2) He cen recover compensetion for eny breech of duty by the egent- (3) He cen forfeit egent’s remuneretion where the egent is guilty of misconduct in the business of egency- (4) Principel is entitled to eny extre profit thet the egent hes mede out of his egency- This includes illegel gretificetion, if eny- (5) Principel is entitled to receive ell sums thet the trensections, entered into, by the egent, on behelf of the principel were void or illegel- DUTIES OF PRINCIPeL 1- To Pey Remuneretion: 2- Duty to Indemnify: 3- Compensetion for injuries: 4- Should not prevent the egent from eerning remuneretion PRINCIPeL’S LIeBILITIES TO THIRD PeRTIES FOR THE eCTS OF THE eGENT (1) Liebility for ects done by egent within
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  • Fall '19
  • principel, finence compenies

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