To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask

Answers

Answer 1

Answer:

The potential buyer will ask three questions such as:

What is the likely return? What can go wrong? Is the risk worth the return?

Explanation:

To determine the uncertainty including returning associated throughout a purchasing decision, the realistic decision that the prospective purchaser wants to respond to or inquire is something listed above.Because the purchaser wants to be sure concerning the possibilities acceptable to him regarding the probability of their return frequency including the uncertainties implicit throughout the returns.

Answer 2

Answer:

-What can go wrong?

-What is the likely return?

-Is the risk worth the return?

Explanation:

Got it right on e2020


Related Questions

If you invest $750 every six months at 8 percent compounded semi-annually, how much would you accumulate at the end of 10 years?

Answers

Answer:

FV= $22,333.56

Explanation:

Giving the following information:

Semi-annual investment= $750

Interest rate= 0.08/2= 0.04

Number of periods= 10*2= 20

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= semi-annual deposit

FV= {750*[(1.04^20) - 1]} / 0.04

FV= $22,333.56

When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true? A) Income from subsidiary is not recognized until there is an entire year of consolidated operations. B) Income from subsidiary is recognized from date of acquisition to year-end. C) Excess cost over acquisition value is recognized at the beginning of the fiscal year. D) No goodwill can be recognized. E) Income from subsidiary is recognized for the entire year.

Answers

Answer:

B) Income from subsidiary is recognized from date of acquisition to year-end.

Explanation:

When an individual or a company purchase another business, they are responsible for all the gains and losses generated by that business starting from the exact moment that the sales transaction has been completed. E.g. if I buy a business on January 20, at 10 AM, I am completely responsible for the things that happen in the company after 10 AM.

An HR manager trying to recruit for a number of key positions in a firm asks the best talent to recommend the best employees they've worked with in the past or employees they feel would be good performers. This is an example of

Answers

Answer:

school buses are yellow

Explanation:

Hernandez Corporation purchases a building for $300,000 cash. The building was appraised at $310,000. The tax assessment on the building was $280,000. Three months after purchasing the building, Company Z offers Hernandez $320,000 for the building. At what amount should the building be reported in Hernandez's financial statements according to the historical cost principle

Answers

Answer:

$300,000

Explanation:

Based on the information given we were told that the Corporation purchases a building for the amount of $300,000 in which the building purchased was paid in cash, this means that the amount that the building should be reported in Hernandez's financial statements according to the historical cost principle will be the cost of purchasing the building which is the amount of $300,000.

Total utility A. is at a maximum when marginal utility is zero. B. falls as long as marginal utility is negative. C. rises as long as marginal utility is positive. D. All of the above.

Answers

Answer: All of the above

Explanation:

Total utility is the total satisfaction that is derived by an economic agent when a particular good or service is being used.

It should be noted that the total utility is at a maximum when the marginal utility is zero. It also falls as long as the marginal utility is negative and rises as long as marginal utility is positive.

This shows that all the above options are correct.

Agent Norm just started working for Sunshine Realty. He was required to pay a monthly fee of $120 for a phone and $50 for desk space. The $170 is usually referred to as what

Answers

Answer:

Startup cost, is the right answer.

Explanation:

Startup cost, the cost that is incurred by the agent is a startup cost because when a person starts working then there is some cost that he has to bear. For example, if a person starts a business then he has to spend the money to get raw materials, land, equipment, etc. Here, theses spendings are done to start the business so this is the startup cost. Similarly, the Agent has to bear the monthly fee for phone and desk space. Thus, it is a startup cost.

After three profitable years, Dodd Co. decided to offer a bonus to its branch manager, Cone, of 25% of income over $100,000 earned by his branch. For the year 20X2, income for Cone's branch was $160,000 before income taxes and Cone's bonus. Cone's bonus is computed on income in excess of $100,000 after deducting the bonus, but before deducting taxes. What is Cone's bonus for the year 20X2

Answers

Answer:

$12,000

Explanation:

our EBIT (and before bonus also) = $160,000

income threshold = $100,000

bonus = 25% of (EBIT - threshold - bonus itself)

so now, we have to solve the following equation:

bonus = 25% x (EBIT - income threshold - bonus)

bonus = 25% x ($160,000 - $100,000 - bonus)

bonus = $15,000 - 0.25bonus

1.25bonus = $15,000

bonus = $15,000 / 1.25 = $12,000

In 2011, Finland had a GDP of $195 billion and a per capita GDP of $36,000. Life expectancy was about 79 years. Which of these additional factors would most support the conclusion that Finland has a developed rather than an emerging economy

Answers

Answer:

Finland has a free-market economy

Explanation:

The fact that would most support this conclusion is that Finland has a free-market economy. A free market is an economic system characterized by a spontaneous and decentralized order of arrangements by individuals allowing them to make their own economic decisions based on supply and demand in that current time with little or no government control in the matter. This is an economic system that can only work in a developed economic nation.

Small business service organizations that are patterned after the Agricultural Extension Service are known as

Answers

Answer: Small Business Development Centers

Explanation:

Small business service organizations that are patterned after the Agricultural Extension Service are known as Small Business Development Centers.

Small Business Development Centers help in giving assistance that are business-related and also help in giving knowledge to entrepreneurs in order to help them begin and run their business.

"The United States feels that it has become too dependent on oil from Saudi Arabia, so it places a limit on the amount of oil that is imported from Saudi Arabia. This is an example of a(n)"

Answers

Answer: Quota

Explanation:

Quotas are a way of limiting the imports that a country receives. It works by placing a limit on the amount of a certain good coming into the country within a certain period of time. After the required quantity is reached, the country stops imports of that good until the next period.

The United States learnt a sharp lesson in oil dependence when in 973, Arab countries placed an embargo on the United States for supporting Israel and this caused economic crises.

Placing a quota on the amount of oil it can get from Saudi Arabia will help it reduce the chances of such an event occurring again.

what is the meaning of personal and impersonal account according to business studies​

Answers

IMPERSONAL ACCOUNT:In the accounts of the nominal ledger, we have different types of expenses for different purposes like rent, insurance, telephone and others. ... In contrast to impersonal accounts, personal accounts are kept for each of the credit customers or suppliers of a business.

Personal and Impersonal Accounts are classified based on ownership. Nomenclature is the principal criterion for deciding the categorization of the account.

An Account is a record of assets, liabilities, and transactions. Double entry is the principle of accounting. Personal accounts are for individuals or firms. Personal accounts hold the privilege of using the username the same as the name of account holder. Personal accounts are used mainly for all official works and records. They can be further classified as:

Nature personal accountsArtificial personal accountsRepresentative personal accounts

Impersonal accounts are for properties, expenses, etc. They can be further classified as:

Real accountNominal account

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Learn early more about Business Studies:

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whats an acrostic poem for economic

Answers

Answer:

An acrostic poem is a poem where certain letters in each line spell out a word or phrase. Typically, the first letters of each line are used to spell the message, but they can appear anywhere.

Here are some examples I found for economic.

The information regarding the acrostic poem for economic should be explained below:

The following information should be considered:

An acrostic poem is a poem in which certain letters in each line spell out a word or phrase. Typically, the first letters of each line are applied  to spell the message, however they can appear anywhere.

Learn more: https://brainly.com/question/4626564?referrer=searchResults

"A customer who has his primary residence in Montana, has a vacation home in Colorado. An intrastate offering is being made in the state of Montana. Which statement is TRUE regarding the customer purchasing this securities offering?"

Answers

The options available are:

A. The customer is permitted to buy these securities

B. The customer is prohibited from buying these securities

C. The customer can buy the securities if he spends at least 2 weeks per year in the state of Montana

D. The customer can buy the securities if he files an affidavit of domicile in the state of Montana

Answer:

The customer is permitted to buy these securities

Explanation:

The intrastate offering is a form of securities offering which different from the interstate offering, and can only be acquired in the state in which it is being issued. However, while it does not need to be registered with the Security Exchange Commission(SEC), to fulfill Intrastate requirements, it must, amongst others, be sold and offered only to residents of the state in which it is issued.

Hence, in this case, since the customer is a primary resident of Montana, he is permitted to buy these securities

Arthur is an unskilled worker who is currently unemployed. He has been offered a job that pays $40 a day, but he is currently receiving unemployment insurance benefits equal to $50 a day, so he chooses not to accept the job and to continue looking for a better job. Arthur is ______ unemployed.

a. frictionally
b. structurally
c. cyclically
d. not

Answers

Answer:

Structurally.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

1. Cyclical unemployment rate (CU).

2. Frictional unemployment rate (FU).

3. Structural unemployment rate (SU).

Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.

In this scenario, Arthur chooses not to accept a minimum wage job offer but rather chose to continue looking for a better job.

Hence, Arthur is structurally unemployed.

Enterprises face the challenge of deciding which investments to make and how to allocate scarce resources to competing projects. Typically a senior manager composes a(n) ________ that outlines the justification for the start-up and funding of a project.

Answers

Answer: Business case

Explanation: In other to eliminate the dilemma posed by having to allocate resources particularly in those which are not readily available in abundance or having to choose between two or more different options, tasks or projects, managers are often faced with a decision dilemma which are is usually analysed by making a business case in other to identify the modalities attached with each project or task on the basis of risk, benefit attached, cost, timing of such projects and so on. This will enable managers to arrive at a reasonable justification to choose an option over the other which will yield a longterm return or benefit to the organization.

Performance is evaluated for an investment center through the comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.

a. True
b. False

Answers

Answer:

True

Explanation:

Return on Investment (ROI) is the proportion of operating assets that an investment center earned as as net operating income.  

ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return.

It is calculated as follows  

ROI = operating income/operating assets  × 100

To evaluate a division, the division's ROI is compared to the budgeted ROI of the company. An actual ROI that exceeds the budgeted is considered a good performance and vice versa

Helping others for free while gaining skills is
O A. a job
O B. working
O C. a career
O D. volunteering

Answers

Answer:

D. volunteering

Explanation:

D.

When you volunteer your gain a skill so

Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer?a. Net listingb. Exclusive right to sellc. Open listingd. Exclusive agency

Answers

Answer:

b. Exclusive right to sell

Explanation:

-Net listing is when the agent is able to keep the difference when a property is sold for more than the asking price.

-Exclusive right to sell is when the seller gives the agent the right to market the property and accepts to pay the comission to the agent if the property is sold during the period of the listing.

-Open listing is when a property has different agents and the one that gets the buyer receives the comission.

-Exclusive agency is when the seller gives an agent the right to market a property but the seller is able to sell the property to a buyer that was not found by the agent and in that case, the seller doesn't have to pay the comission to the agent.

According to this, the answer is that the type of agreement that assures that a broker will receive compensation regardless of who procures the buyer is exclusive right to sell because the agent is granted the right to sell the property and the seller agrees to pay the comission if the property is sold during the time of the listing last and it doesn't matter who finds the buyer.

For married taxpayers filing a joint return in 2019, at what AGI level does the phase-out limit for contributions to Qualified Tuition Programs (Section 529 plans) start?

Answers

Answer:

There is no phase out limit for contributions to Section 529 plans. The limit on how much money you can contribute to a plan is $15,000 per year, but it doesn't phase out if you have a high income.

The main differences between a Coverdell account and a 529 account is that the Coverdell account has an age limit of 30, an income limit of $220,000 and a maximum annual contribution of $2,000.

From an initial​ long-run equilibrium, if aggregate demand grows faster than​ long-run and​ short-run aggregate​ supply, then Congress and the president would most likely

Answers

Answer:

Decrease government spending.

Explanation:

Stating the initial fact that equilibrium can directly be explained to be a concept requiring a government official to borrow. And also in certain views by economists who conceive of economic processes as analogous to physical phenomena such as velocity, friction, heat, or fluid pressure.

In the case above, from the initial ong-run of this said equilibrium which shows aggregate demand grows faster than long-run and also in that of short-run supply, congress and the president are most certain to reduce government spending. It is somewhat explained also that physical forces are balanced in a system, no further change occurs.

Under FINRA rules, all of the following are necessary to open a corporate account EXCEPT:_________.
a. corporate resolutions
b. corporate seal
c. corporate charter
d. corporate minutes

Answers

Answer:

Corporate minutes

Explanation:

Financial Independent Regulatory Agency (FINRA) is an independent body that formulates and enforces rules guiding registered brokers and broker dealer firms in the United States.

This also includes account opening requirements of brokers.

The required documents to open a broker account includes corporate resolutions, corporate seal, corporate charter.

Other information required are social security number, drivers licence or passport information, employment status, and investment profile.

involving employees in setting service performance goals can be very instructive in helping a firm reduce the

Answers

Answer:

standards gap

Explanation:

Involving employees in setting service performance goals can be very instructive in helping a firm reduce the "standards gap" by increasing their input into systematizing the expected output.

Standards gap actually talks about the difference that exists between the service standards a firm sets and that firm's understanding of the expectations of the customers.

ou are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in incremental gross profit, which includes $200 in depreciation. Incremental SG&A expense is $400. At a 35% tax rate, the after-tax incremental cash flow is:

Answers

Answer:

$3,190

Explanation:

Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses

= $5,000 - $400

= $4,600

Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)

Incremental net income after taxes = $4,600 * (1 - 0.35)

Incremental net income before tax = $4,600 * 0.65

Incremental net income before tax = $2990

Incremental cash flow = Incremental income after taxes + Depreciation

Incremental cash flow = $2,990 + $200

Incremental cash flow = $3,190

After a foreclosure sale, the borrower who has defaulted on the loan may seek to pay off the mortgage debt plus any accrued interest and costs under what right? A) Equitable redemption B) Statutory redemption C) Defeasance D) Usury

Answers

Answer:

Option B (Statutory redemption) is the correct choice.

Explanation:

The privilege is given by law to reclaim the mortgagee after such a foreclosure auction to something like a mortgage holder, somebody who promises properties as collateral for a loan, and even to any other. A mortgager's right to recover possession of the property following a foreclosure is formal restitution or Statutory redemption. A mortgager seems to be a political group who appropriates resources to afford properties from some kind of mortgagee.

There are several other options not relevant to either the specified scenario. And the solution to the above has been the appropriate one.

Since they filed bankruptcy in the past, a couple ends up paying a 12% fixed rate for a 30 year mortgage. With a better credit rating, they could have gotten the loan at a rate of 8%. If their loan amount is $140,000, how much more per month will the couple be paying for their mortgage as a result of their bankruptcy?

Answers

Answer:

Monthly payment = $1,402.65

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  

The monthly equal installment is calculated as follows:  

Monthly equal installment= Loan amount/Monthly annuity factor  

Loan amount = 140,000

Monthly annuity factor =  

=( 1-(1+r)^(-n))/r  

r- Monthly interest rate (r)  

= 12/12= 1%  

n- Number of months ( n) = 30 × 12= 630

Annuity factor  

= ( 1- (1.01)^(-630)/0.01= 99.8105

Monthly installment= 140,000 /99.8105  = $1,402.65

Monthly installment = $1,402.65

Monthly payment = $1,402.65

Answer:

✅ b. $412.79

i got it right ⬇️

On July 1, 2019, Beyonce company paid $1800 for six months of insurance coverage. No adjustments have been made to the prepaid insurance account, and it is now December 31, 2019. Prepare the journal entry to reflect expiration of the insurance of December 31, 2019.

Answers

Answer and Explanation:

The adjusting entries are shown below:

1. Insurance expense A/c Dr $1,800

        To Prepaid insurance A/c           $1,800

(Being prepaid insurance is adjusted)

Here the insurance expense is debited as it increased the expenses and credited the prepaid insurance as it decreased the assets so that the proper posting of the journal entry could be done

The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay their proportional share of the cost, the city may file:______.a) property tax lien.
b) assessment lien.
c) general lien.
d) mechanics' lien.

Answers

Answer: assessment lien

Explanation:

From the question, we are informed that the City of Grand Rapids installed a new water main on Oak Street and that the city then decided to charge the property owners along Oak Street a proportional cost of the new water main.

We are further told that a property owner refuses to pay their proportional share of the cost. In this case, the city may file an assessment lien as this allows the city to sell the property of the homeowner so as to repay the assessments that the person owe.

The seller wants to make a $35,000 profit on the sale of a home after expenses of $500 for title, a loan of $45,000, $50 recording fees, and a 7% commission. At what approximate price must the seller sell his home to make the profit he wants?

Answers

Answer:

The approximate price the seller must sell his home to make the profit he wants is $86,188.5

Explanation:

The given parameters are;

The amount of profit which the seller of the home wants = $35,000

The title expenses = $500

The amount of loan involved =$45,000

The recording fees = $50

The commission paid for the sale = 7%

Therefore, the total cost = $500 + $45,000 + $50 = $45,550

Adding the profit to the cost gives;

$45,550 + $35,000 = $80,550

The 7% is then added to give

Selling price for the home = $80,550 + 7% of $80,550

Which gives;

Selling price for the home = $80,550 + 7/100 × $80,550 = $86,188.5

Therefore, the approximate price the seller must sell his home to make the profit he wants = $86,188.5.

Name the old name of java​

Answers

Answer:

oak by james gsoling .1991

A tire company has a manufacturing plant located in an area that has just been re-zoned for residential usage. The company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire, the tire company:

Answers

Answer: would be forbidden to rebuild the plant in that neighborhood under any circumstances.

Explanation:

From the question, we are informed that a tire company has a manufacturing plant that is located in an area that has just been re-zoned for residential usage.

We are further told that the company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire, it should be noted that in such scenario, the company would not be allowed to rebuild in that environment.

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