Should a competitive firm ever produce when it is losing money? Why or why not? A. Yes, as long as revenue can cover total variable costs plus any portion of fixed costs B. No, the firm should shutdown if it is making an economic loss. C. No, the firm should shutdown if it is making an accounting loss. D. Yes, as long as revenue can cover some portion of total variable costs.

Answers

Answer 1

Yes, Should a competitive firm ever produce when it is losing money beacuse as long as revenue can cover total variable costs plus any portion of fixed costs.

Fixed costs are expenses that remain constant regardless of whether sales or number of products rise or fall. This is so as they aren't involved in the actual process of producing a something or providing a service. Expenses are therefore regarded as indirect costs. Housing costs, rent, salary, and the expenditure for benefits for semi and management staff are examples of fixed rate. The income statement that follows demonstrates how overheads are included in profit before interest or taxes and affect the net income of a factory.

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Related Questions

End of Chapter Problem Suppose the government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases. In the accompanying diagram, shift the AD, LRAS, and/or SRAS curves and move the equilibrium point to its new position to demonstrate how the economy moves from one long-run macroeconomic equilibrium to another.

Answers

Line AD shifts to the right, Line SRAS moves shifts to the left Point E moves upward to new intersection.

What is Spatially resolved acoustic spectroscopy (SRAS)?The study of crystalline or polycrystalline materials frequently makes use of the non-destructive acoustic microscopy microstructural-crystallographic characterization technique known as SRAS (spatially resolved acoustic spectroscopy). The method can provide details about the material's crystallographic alignment and internal structure. Traditionally, diffraction methods from electron microscopy, such EBSD, have been used to get the data that SRAS provides. In 2005, the method was patented.The surface acoustic wave (SAW) velocity is measured by SRAS over a specimen. The SAW velocity is a function of the material state, which includes elements like temperature, stress, crystallographic orientation, and elastic constants.Two lasers are utilised in SRAS measurements, as is common in laser ultrasound methods, with one laser used to create the acoustic waves and the other to detect them afterwards.

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39. If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be __________. *

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(Nominal GDP minus Real GDP) x 100 is the GDP price deflator. When the nominal GDP is lower than the actual GDP, the GDP deflator is negative, which indicates that the country is experiencing deflation.

Nominal/Real x 100 is the formula used to compute the GDP deflator. The GDP Deflator for 1980 in the aforementioned example is 100 ($500/$500 x 100 = 100). GDP deflator is always set to 100 for the base year. The 2017 GDP deflator is 342.86 ($3000/$875 multiplied by 100 = 342.86). Real GDP is typically calculated by multiplying nominal GDP by the GDP deflator (R). The deflationary figure, for instance, is 1.01 if an economy's prices have risen by 1% since the base year. Real GDP is computed as $1,000,000 / 1.01, or $990,099, if nominal GDP was $1 million.

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When cyclical unemployment increases and other things remain the​ same, ______.
A. the natural unemployment rate does not change
B.the natural unemployment rate decreases
C.the amount of frictional unemployment increases
D. the amount of structural unemployment increases

Answers

When cyclical unemployment rises while other factors remain constant, the natural unemployment rate does not change.

Cyclical unemployment is the part of overall unemployment caused by economic ups and downs.

What is the natural unemployment rate?

The ratio, or the state of full employment, in proportion to the workforce that is still unemployed is referred to as the natural rate of unemployment. The natural unemployment rate is determined by an economy's supply side, which includes economic institutions and production capabilities. The natural rate of unemployment is also known as the combination of structural and frictional unemployment that occurs in an efficient and thriving economy where the labor and resource markets are mostly in equilibrium.

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What you give up in the future to make a purchase today?

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The answer to this question depends on the purchase you are making. Hence, I am giving answer to the best of my knowledge. Generally speaking, if you make a purchase today, you are giving up the ability to use that money for something else in the future.

You are also giving up the potential gains or savings that may have been earned by waiting to make the purchase. For example, if you make a purchase today, you are giving up the potential savings that may have been earned through interest or other investments.

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Americans’ confidence in government institutions in the United States has __________.
a. fluctuated depending on foreign policy commitments
b. been largely dependent on political party affiliation
c. generally decreased over time
d. fluctuated depending on who is in office

Answers

Americans’ confidence in government institutions in the United States has

generally decreased over time.

Are government institutions branches?

Makes laws; legislative (Congress, comprised of the House of Representatives and Senate) Executes legislation as an executive (president, vice president, Cabinet, most federal agencies) Judicial: Supreme Court and other courts evaluate laws. The Congress, the Presidency, the Bureaucracy, and the Federal Courts are examples of national governing institutions. USA.gov provides an even more comprehensive database, including 268 Cabinet divisions and 137 autonomous executive agencies. The phrase "no authoritative list of government agencies" is accurate.

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an enconomy in which price and quanity of goods and services is determined soley by supply and damand is a

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A market economy is one in which the quantity and price of products and services are solely decided by supply and demand.  Central authorities do not regulate market economies (like a government).

A market economy is a kind of capitalism in which a nation's companies and residents interact to determine economic policy and the cost of products and services. Although there may be some central planning or government interference, this phrase often denotes a more generally market-oriented economy. Adam Smith, David Ricardo, and Jean-Baptiste Say were among the classical economists who built the theoretical framework for market economies. These traditional liberal proponents of the free market held that, in general, the profit motive and market incentives led economic decisions in more productive and efficient directions than did government economic planning.

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The landlord of a building needs to perform plumbing work in the bathroom of a tenant's space. Which clause in the tenant's lease will specify when the landlord is permitted to enter the tenant's space to perform the work

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Notice Clause in the tenant's lease will specify when the landlord is permitted to enter the tenant's space to perform the work.

Owner of a home, apartment, condominium, piece of land, or other real estate that is rented or leased to a person or organization is known as a landlord (also a lessee or renter). The term "landlord" is used to describe a legal person in this situation. Lessor and owner are other terms. For the female owners, the title "landlady" may be used. Landlord/landlady refers to the manager of a bar who is legally a licensed victualler in the United Kingdom. In terms of political economy, it only applies to the owner of undeveloped natural resources (such as land, not including structures), from which revenue is derived in the form of economic rent. The idea of a landlord can be traced to the feudal system of manoralism (seignorialism), in which a landed estate is owned by a Lord of the Manor (mesne lords), typically members of the lower nobility who evolved into the rank of knights in the high medieval period, holding their fief via subinfeudation. However, in some instances, the land may also be directly subject to a member of higher nobility, as in The latifundia (wide farmsteads worked by peasants) and villa systems of the Roman Empire are ultimately continued by the medieval system.

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In supplying private-label footwear to chain retailers, the sizes of a company's margins over direct costs (as reported on p. 6 of each issue of the FIR) should be viewed as O how much each pair of private-label footwear sold adds to the company's pretax profits, assuming that the company's margins on branded footwear were sufficient to cover all administrative expenses and all interest costs. O cash that can be used to pay down long-term debt or increase dividend payments or be deposited in the company's retained earnings (to strengthen the company's balance sheet) O the net profit a company earns on each pair of private-label footwear sold. O the gross profit a company earns on each pair of private-label footwear sold. O how much the company received from each pair of private-label footwear sold over and above materials costs and direct labor costs-- these dollars are automatically deposited in the company's retained earnings account and help boost the company's credit rating. Copying, redistr buting, or website posting s expressly proh bited and constitutes copyright violation Copyr ght 2018 by Glo-Bus Software, Inc

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How much money the business had available from each pair of private label shoes sold that could be utilized to assist cover administrative costs, interest costs, and help the business make a pre-tax profit.

Costs associated with ongoing business operations are known as administrative expenses. Both fixed and semi-variable administrative expenses are possible. Typical examples include rent, utilities, tools, supplies, insurance plans, pay, compensation, and legal assistance. Operating costs, commonly referred to as selling, general, and administrative (SG&A) costs, are what a business must pay. Rent and utilities, sales and accounting, management and administrative pay, and marketing and advertising are among them. Custodian fees, issuance charges, and interest on obligations of the Financing Corporation are all considered non-administrative expenditures. Whatever the level of a company's revenue, fixed costs remain constant. generally included in operating costs like Sales General and Administrative (SG&A). Rent, utilities, salary, and benefits are examples of things that are typically seen as fixed costs.

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Universal Containers wants to track Invoice Payments on an Opportunity Related List. Only the Finance Team should see this Related List; however, all Users should be able to view Invoice Payment reports. How should the System Administrator implement this requirement?
O Set the Invoice Payment Org-Wide Sharing Settings to Private.
O Only grant Finance access to the Invoice Payment object.
O Build an Invoice Payment report with a Running User of Finance.
O Create a new Page Layout and Profile for the Finance Team

Answers

Option D is correct, It should System Administrator implement this requirement by creating a new Page Layout and Profile for the Finance Team.

International distributor of containers, Universal Containers is expanding quickly. The business manufactures all different types of containers, including small postal containers, special equipment packing, and huge cargo shipping containers. The Salesforce Administrator certificate is intended for those with Salesforce administrator expertise who are always seeking new methods to help their organizations make the most of both existing and emerging features and capabilities. Establishing an Org set up by

Describing the information that may be found in Setup's company information section. List the different UI elements that an administrator can modify.Put each UI feature to use in typical circumstances.Put into practice typical scenarios involving business information.

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What is an example of an irregular or variable expense?

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An example of an irregular or variable expense is home repairs. These can range from small fixes like changing a lightbulb to major repairs such as replacing the roof.

The cost of these repairs can vary depending on the type and extent of the repairs needed.

A cost that changes in accordance with a certain type of activity is called a variable expense. For instance, the cost of direct materials rises as sales do. Commissions, billable labour, piece rate labour, and credit card fees are examples of additional variable costs. Few costs in a firm are actually changeable.

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the direct exchange rate is $.020 / ¥1. then the indirect exchange rate is

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the direct exchange rate is $.020 / ¥1. then the indirect exchange rate is ¥50/$1 (¥1/$.020=50) . An exchange rate is the rate at which one currency is exchanged for another in finance.

Currencies are most typically national currencies, although they can also be sub-national, as in Hong Kong, or supra-national, as in the euro. The value of one country's currency in respect to another currency is sometimes referred to as the exchange rate. An interbank exchange rate of 114 Japanese yen to the US dollar, for example, indicates that 114 will be exchanged for US$1 or that US$1 will be exchanged for 114. In this situation, the price of a dollar in respect to the yen is 114, or the price of a yen in relation to dollars is $1/114.

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Explain how experience performing accounting research could prepare you for a career in the profession

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Performing accounting research equips individuals with essential skills for interpreting complex standards making informed decisions, providing accurate financial reporting, and ensuring compliance with laws.

Additionally, research experience allows an individual to develop critical thinking skills, which are essential for solving problems and making decisions in the accounting profession. It also helps in understanding the current trends and issues that are relevant to the profession, which can be valuable when providing advice to clients or making strategic business decisions.

Research experience also helps to develop strong analytical skills, which are essential for understanding financial statements, identifying potential issues, and making recommendations for improvement. Furthermore, research experience can also provide an understanding of the different research methods and techniques used in accounting, which can be used to evaluate financial data and make informed decisions.

In summary, experience performing accounting research can provide an individual with the necessary knowledge, skills and analytical abilities to be successful in the accounting profession. It helps in understanding the complex accounting standards and regulations, developing critical thinking and analytical skills, staying updated with current trends and issues and making informed decisions.

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Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property

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According to question, if Morgan died with no legal heirs then ,the state or county receive title to the property .

According to succession law, the spouse (or registered partner) and children are first in line to receive (equal portions of) the estate. Next come brothers, sisters, and parents, then grandparents, and finally great-grandparents.

A person who decided to take legal possession of a deceased ancestor's estate after they went away without leaving a will or designating a legal heir. Therefore, a legal heir is a person who legally or by way of a will inherits an ancestor's property.

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If the major airline companies colluded to make consumers pay an additional $50 to be able to carry on luggage, this would be an example of ______

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This would be an example of price fixing. A price fixing agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilise prices or price levels is referred to as a price fixing agreement.

Horizontal price fixing occurs when competitors agree to raise, lower, or stabilise their prices. For example, a horizontal agreement between two competing fast-food chains that sell hamburgers on the retail price of cheeseburgers is illegal under antitrust laws. Price fixing violates the basic laws of demand and competitors. It provides monopolies with an advantage over competitors. It is not in the best interests of the customers. They raise customer prices, reduce incentives to innovate, and raise entry barriers.

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An investor purchased a corporate bond for 97 3/8. If the bond is sold for 99 3/8, the investor has a profit of

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The investor realized a profit of 1.875 percent of the purchase price of the bond. When an investor buys a corporate bond at 97 3/8 and then sells it at 99 3/8, the investor will make a profit of 1 7/8 points. This translates into a return of 1.875 percent.

The points system is a convenient way to measure the value of bonds and other investments. It allows investors to calculate their profits and losses quickly and easily. The points system is a useful tool for investors to track their investments and evaluate their returns. By factoring in the bond's purchase price and then subtracting the sale price, investors can easily calculate how much they've made or lost on the investment. This makes it easier for investors to decide whether to continue investing in a particular bond or investment.

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What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P

Answers

$720,465.80 is the remaining balance on a $780,000 amortized loan.

How do you calculate the balance on amortized loan?

For your specific loan of $780,000 with a 5% interest rate and a monthly payment of $4,826.71, the remaining balance after the first payment would be:

$780,000 x (1 + 0.05)^1 - $4,826.71 x ((1 + 0.05)^1 - 1) / 0.05

= $780,000 x 1.05 - $4,826.71 x 1 / 0.05

= $817,000 - $96,534.20

= $720,465.80

So the balance would be $720,465.80 after the first payment.

How are amortized loan payments determined?

Take the total loan amount and divide it times the interest rate starting in month one. Then, reduce the figure by 12 to obtain the monthly interest for a loan having monthly payments. The amount that remains after deducting interest from the entire monthly payment is what you pay toward principal.

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You currently work for the Lexington Legends, a minor league baseball team. The team's attendance is down this year even though the team is playing

better than it ever has before. What part of the promotional mix would you suggest the team adjust in order to increase attendance?

Multiple Choice

- position

- promotion

- place

- product

- price

Answers

The correct response is b) promotion. Attendance in Minor League Baseball (MiLB) is low.

Promotion includes a wide range of activities aimed at increasing public awareness or advancing a product. When referring to a career, promotion is raising a worker's rank or position within a hierarchical system. An employee's rank or position in an organizational hierarchy system is elevated by a promotion. Promotion could be an employee's reward for excellence, or a favorable evaluation. These include event marketing, exhibits, and trade shows, as well as direct marketing PR, advertising, and sales promotion. The main advantage of a promotion is that it makes a business stand out from its competitors. Without competition, no company would ever need to run promotions. To continue doing business with customers, you must stay one step ahead of your rivals.

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Ron Collins is the project manager for a biotechnology company. He is outsourcing a part of the project to a foreign company. The foreign company will charge Ron $10 per hour for each employee that will be involved in the outsourced part of the project. Ron will also be charged an extra amount for any incidentals incurred in the daily work (e.g., office supplies needed). What type of contract is it?

Answers

Ron will also be charged an extra amount for any incidentals incurred in the daily work. This type of contract is called T&M.

Work or labour is any deliberate action that individuals engage in to support the needs and desires of themselves, others, or the larger community. Work, in the context of economics, may be defined as human activity that contributes to the production of products and services within an economy.

Work is vital to all cultures, although it varies greatly within and across them, from harvesting natural resources by hand to running complicated technology that replace physical or even mental effort by many people. Except for the most basic jobs, all require particular talents, equipment or tools, and other resources.

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How does government protect private property in a mixed economy?

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Governments may impose taxes on the private sector in an effort to redistribute wealth, and they may also utilize tax income to further social objectives. In mixed economies, the government typically intervenes through fiscal stimulus, trade protection, subsidies, targeted tax credits, and public-private partnerships.

What does " government typically intervenes" mean ?

Governmental intervention is the deliberate meddling by a government in a country's economy through regulatory actions. It represents a situation in which a government actively swayed decisions made by individuals or groups. Government involvement is necessary because of the perceived flaws and inefficiencies of the market. A government makes and upholds laws with the goal of advancing welfare or pursuing certain social and economic goals. These rules aim to achieve results that.

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The HR department at Clearwater Electronic received a report of a work-related injury on the production line that reulted in the employee miing everal day of work. Suppoedly, the employee hurt hi back while lifting a box of component. However, another employee reported that the employee wa not really hurt and jut wanted ome day off. It i the reponibility of the HR department to proce worker’ compenation claim and make ure the claim i not fraudulent. Which tatement give the bet reaon for HR to enure that the claim i legitimate?

Answers

Organizations that respond snappily and efficiently to the external terrain frequently have a competitive edge over their challengers. Companies need to be sensitive to how layoffs affect workers and plan druthers.

Because the HR director in the organizations is responsible for the establishment's gift operation, it's important to work with top operations to ensure the recruiting strategy meets the establishment's overall requirements and attracts top gifts.  

The reclamation and selection process at associations is finding and hiring stylish campaigners for job openings. This process has a  channel structure. Imagine you're seeking a new hire for a  part – your current hand decided to pursue another occasion. You need to find relief.

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the fourth industrial revolution is where advances in _______ are radically shifting the way we work, live, learn, and interact with each other.

Answers

The fourth industrial revolution is where advances in technology are radically shifting the way we work, live, learn, and interact with each other.

So, the correct answer is technology.

We are at the start of the Fourth Industrial Revolution, a new period that expands and builds on the effects of digitization in novel and unexpected ways. Technologies are emerging and having an impact on our lives in ways that suggest this is the case. Therefore, it is important to take some time to think about the specific changes we are going through and how we can ensure that they benefit the majority rather than a select few, both collectively and individually.

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How much was firm xyz's dividends per share if the firm paid $3. 20 million in dividends and there were 4 million shares outstanding?

Answers

The dividend per share would simply be the total dividend divided by the shares outstanding.

What are Outstanding Shares?

Simply dividing the annual payout by the stock's current price yields the dividend yield. This means that Company A's dividend yield is 2.22% in percentage terms.

The number of shares in circulation for a specific company is calculated by deducting the number of shares issued from the number of shares held in the company's treasury. Treasury stock refers to the shares that a company buys back when it sells its own stock.

The balance sheet for Apple (NASDAQ:AAPL) from 2016 through 2020 is depicted in the graphic below. The bottom line shows how many new shares Apple issued in that fiscal year, while the bottom line shows the number of shares outstanding at the conclusion of each fiscal year.

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Police officers break into a home unlawfully to look for evidence. This is an example of the violation of
A. substantive due process.
B. the rights of the accused.
C. procedural due process.
D. the right of association.

Answers

Police officers illegally enter a house to search for evidence. This is an example of the violation of procedural due process.

What do you mean by procedural due process?

Before taking away someone's life, liberty, or property, government officials must follow fair procedures, according to a legal notion known as procedural due process in the United States. When the government wants to take away one of those interests from a person, procedural due process demands that the government at the very least give the person notice, a chance to be heard, and a decision made by an impartial decisionmaker. The Due Process Clauses of the Fifth and Fourteenth Amendments to the United States Constitution mandate procedural due process.Contrarily, procedural due process investigates whether the government has adhered to the correct processes for denying someone their life, liberty, or property.

So, The correct option is C.

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Which of the following is a monetary policy tool used by the Federal Reserve Bank?
1) Decreasing the rate at which banks can borrow money from the Federal Reserve.
2) Buying $500 million worth of government securities, such as Treasury bills.
3) Increasing the reserve requirement from 10% to 12.5%
4) All of the Above

Answers

All of the below  is a monetary policy tool used by the Federal Reserve Bank. 1. Decreasing the rate at which banks can borrow money from the Federal Reserve,

2 Buying $500 million worth of government securities, such as Treasury bills.

3 Increasing the reserve requirement from 10% to 12.5%

Option D is correct.

Monetary policy:

A set of actions to control a nation's overall money supply and achieve economic growth is referred to as monetary policy. Modifying bank reserve requirements and adjusting interest rates are examples of monetary policy strategies. It is common to classify monetary policy as either expansionary or contractionary.

What role does monetary policy play?

Central banks play a crucial role in helping to manage economic fluctuations and achieving price stability (low and stable inflation). Over the course of the past few decades, there have been significant shifts in the policy frameworks within which central banks operate.

What is monetary policy's primary objective?

"So as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates," is the Federal Reserve Act's requirement for monetary policy. Despite the fact that the act specifies three distinct monetary policy objectives, the Fed's mandate for monetary policy.

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Essen Inc. bought 80% of the equity capital of Heidleberg Ltd for 3,240MM. The transaction was funded by 90MM of Essen's balance sheet cash, an issuance of 1,710MM worth of Essen debt and the remainder with Essen equity. What is the consolidated shareholders' equity

Answers

3,643.2 MM is the consolidated shareholders equity.

What is a shareholder, exactly?

A person or organization that has contributed funds to an organization throughout exchange for a "share" of ownership is referred to as a shareholder. Basic or preferred interests issued by the firm and held by the shareholder serve as a representation of that ownership.

Are shareholders deemed to be owners?

Existing share holders, also abbreviated as shareholders or voters, are allocated to a portion of the company's earnings, remaining assets, and voting rights.

Equity held by all combined shareholders: = Prior shareholders ownership of Essen Inc. + NCI + newly issued shares = 1872 MM + 331.2 MM + 1,440 MM = 3,643.2 MM

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What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 8 years if the current price is $520.

Answers

The concept here is Zero-coupon bonds, a bond in which the face value is repaid at the time of maturity. The answer is, 8.51%.

Zero coupon bonds are bonds that pay no interest throughout their life. Unlike ordinary bonds, it does not make periodic interest payments and has no so-called coupons, hence the term zero coupon bond.

When the bond reaches maturity, its investor receives its par value. Given:

maturity - 8 years

face value - $1,000

current value - $ 520

Calculation of YTM:

YTM = (face value / current bond price) ^(1/maturity) - 1

YTM = (1000/520) ^(1/8) -1

YTM =  (1.9230)^0.1250 -1

YTM = 1.0851 -1

YTM = 0.0851 or 8.51%

We can conclude by saying that, the interest rate of a Zero-coupon bond will be 8.51%.

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Burkhardt Corp. pays a constant $14.30 dividend on its stock. The company will maintain this dividend for the next 7 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price

Answers

Answer:

TOTAL CURRENT PRICE OF SHARE:  $67.38

Amount:          year           pvf at 11%              PV

   $14.30         year 1         0.90090            $12.88

   $14.30          year 2        0.81162             $11.61

   $14.30          year 3        0.73119              $10.46

   $14.30           year 4       0.65873             $9.42

    $14.30           year 5       0.59345           $8.49

     $14.30          year 6      0.53464             $7.65

    $14.30           year 7       0.48166             $6.89

       TOTAL CURRENT PRICE OF SHARE:  $67.38

Explanation:

A stock price is the price of one of a company's many shares available for sale. Simply put, the stock price is the highest price someone is willing to pay for the stock or the lowest price at which it can be purchased. Analysts use the random walk approach to explain the movement of asset prices, especially stock market stock prices, in economic and financial theory. This methodology is based on the premise that investors are neutral and unbiased and always assess the value of assets based on future expectations. In such circumstances, prices are subject to all available information and are subject to change only when new information is released.

I hope this helps!!!

Commercial food innovators spend several months perfecting flavors using test kitchens and expert taste testers, and then even more time creating brand names, logos, and packaging. As marketers, using research to develop food innovation flavor profiles requires our _________ skills while using creativity to develop its branding for the marketplace requires our _________ skills.

Answers

As marketers, using research to develop food innovation flavor profiles requires our chemistry skills while using creativity to develop its branding for the marketplace requires our technical skills.

The flavor profiles of a food or beverage can be complex and varied, depending on the ingredients used. For example, a cup of coffee can have a flavor profile that is sweet and nutty, with notes of chocolate and caramel. A glass of red wine can have a flavor profile that is earthy and fruity, with hints of oak and spice.

A juic y steak can have a flavor profile that is savory and smoky, with a hint of garlic and herbs. A piece of dark chocolate can have a flavor profile that is rich and sweet, with notes of cocoa and nuts.

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When the Petersons' planner is gathering data during the financial planning process, financial goals should be quantified in dollar amounts and which of the following: a. established time frames
b. by type of goal
c. by ownership
d. order of priority

Answers

When the Petersons' planner is gathering data during the financial planning process, financial goals should be quantified in dollar amounts and established time frames.

Instead of being generic in nature, while supporting the client in developing realistic objectives, the planner should help clarify financial goals so that they are quantifiable in dollar amounts and have specified time horizons. Aside from risk tolerance, the time horizon is perhaps the most significant issue to consider when determining what securities to invest in, how much to invest in, and when to invest. The time horizon for any investment will be determined by the investor's aims and circumstances. Those with limited time horizons, for example, may be better suited picking less volatile and more liquid investments.

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What is the term for the proportion of funds invested in each of several investment alternatives?
A) spreading
B) shorting
C) margin buying
D) asset allocation
E) diversification

Answers

Asset allocation is the term for the proportion of funds invested in each of several investment alternatives.

The process of allocating your investments among various assets, including stocks, bonds, and cash, is known as asset allocation. The choice of how to allocate your assets is a private one. Depending on the time you have to spend and how much risk you can bear, the allocation that is ideal for you changes over the course of your life.

As a general rule, the suggested allocation has historically been 40% bonds and 60% stocks. The poor rate of return on bonds today, however, has led some financial experts to propose a new benchmark of 75% equities and 25% bonds.

The process of allocating your investments among various assets, including stocks, bonds, and cash, is known as asset allocation. The choice of how to allocate your assets is a private one. Depending on how you are feeling at a given period in your life.

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