Answer and Explanation:
NASAA = North american Securities Administrators Association
NASAA would require written authority in order for trading as expressed by client to a third party. The written authority is very important according to the regulations by NASAA.
In calculating the CPI, a fixed basket of goods and services is used. The quantities of the goods and services in the fixed basket are determined by
a. surveying consumers.
b. surveying sellers of the goods and services.
c. working backward from the rate of inflation to arrive at imputed values for those quantities.
d. arbitrary choices made by federal government employees.
Answer:
Answer is option A i.e. surveying consumers.
Explanation:
In the calculation of CPI, the quantities of the goods and services in the fixed basket are determined after conducting the various household expenditure survey of the consumers who actually use the goods and services. Therefore, we can say that these quantities are determined after surveying the consumers.
The English economist William Stanley Jevons described a world tour during the 1880s by a French singer, Mademoiselle Zelie. One stop on the tour was a theater in the Society Islands, part of French Polynesia in the South Pacific. She performed for her usual fee, which was one-third of the receipts. This turned out to be three pigs, 23 turkeys, 44 chickens, 5000 coconuts, and "considerable quantities of bananas, lemons, and oranges." She estimated that all of this would have had a value in France of 4000 francs. According to Jevons, "as Mademoiselle could not consume any considerable portion of the receipts herself, it became necessary in the meantime to feed the pigs and poultry with the fruit."
1. No. The goods are only a medium of exchange and store of value.
2. No. The goods are not a medium of exchange.
3. No. The goods are not a store of value.
4. Yes. The goods fulfill all four functions of money.
Answer:
2) No. The goods are not a medium of exchange.
3) No. The goods are not a store of value.
Explanation:
The goods that Mademoiselle Zelie received were not a medium of exchange and are not a means for storing value. Maybe they could qualify as a medium of exchange for local residents, but not for Mademoiselle Zelie.
The four functions of money are:
serve as a medium of exchange serve as a unit of accountserve as a store of valueserve as a standard of deferred paymentJustin, age 66, paid $6,000 in qualified medical expenses in 2019 and took an $8,000 Archer MSA distribution during the year. What tax penalty will apply with respect to the excess distribution?
Answer:
No tax penalty will apply with respect to the excess distribution
Explanation:
Data provided in the question:
Age of Justin = 66 years
Qualified medical expenses in 2019 = $6,000
Archer MSA distribution taken during the year = $8,000
Now,
No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.
Here,
The age of Justin is 66 years i.e over 65 years.
hence,
No tax penalty will apply with respect to the excess distribution
No tax penalty will apply with respect to the excess distribution
Given that,
Justin age is 66 years.Qualified medical expenses in 2019 = $6,000Archer MSA distribution taken during the year = $8,000Based on the above information, the information is as follows:
No tax penalty should be applied to the excess distribution for an individual whose age is over 65 years on the records.Here in the given case,
The age of Justin is 66 years i.e more than 65 years.
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Erasmus applies for a job at Drain-Pro Plumbing & Repair LLC for which he is well qualified. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Erasmus is rejected. Drain-Pro continues to seek applicants.
Refer to Fact Pattern 35-1A. Erasmus files a suit against Drain-Pro under the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of
a protected class.
a majority group.
an employers' association.
a union.
Answer:
To support this claim, Erasmus must show that he is a member of
a majority group
Explanation:
Civil Rights Act of 1964 is a landmark in the history of the USA as it protects the rights of the labor who are treated with bias due to their color, sex, race, national origin etc.As Erasmus has filed a suit against Drain-Pro for reverse discrimination, which is defined as the discrimination against a majority of people to favor the minority of people, so then Erasmus should belong to a majority group in order to win the suit under the claim for reverse discrimination.
Government can raise economic efficiency through all of the following policies, except:_______.a) outlawing various forms of commercial deception. b) imposing pollution taxes on polluting firms. c) using tax money to subsidize goods with external benefits. d) fixing the prices of various resources and products.
Answer:
d) fixing the prices of various resources and products.
Explanation:
Commercial deception is false advertising. It is creating a false impression about a good or service. False advertising misleads consumers and reduces efficiency. Commercial deception is illegal in some countries.
Negative externality is when the costs of economic activities to third parties exceeds its benefits. Negative externality reduces efficiency. The government can discourage the production of goods and services that create negative externality by imposing taxes. Taxes increases the cost of production and discourages production of that good.
Positive externality is when the benefits of economic activities to third parties exceeds the cost. Goods that produce postive externality are usually underproduced. The government can encourage production of goods that produce postive externality by subsidizing to encourage production.
Government fixing prices can be called either price ceiling or price floor. Price ceiling or price floor can discourage production and consumption respectively.
I hope my answer helps you.
Long-run competitive equilibrium requires:_______
a. economic profits to be zero for all firms in the industry.
b. price to be zero for all firms in the industry.
c. average costs to be zero for all firms in the industry.
d. accounting profits to be zero for all firms in the industry.
c is my answer to your question
Explanation:
and and I don't know if it's right or wrong
An individual is both an appraiser and a real estate broker. What are the individual’s USPAP obligations when preparing listing presentations and comparative market analysis reports for brokerage clients?
Answer:
The Uniform Standards of Professional Appraisal Practice (USPAP) provides flexibility for professionals that have multiple roles like being a broker and an appraiser at the same time.
USPAP requires that appraisers must not misrepresent their roles if they also act as brokers or agents. That means that as long as appraisers are not doing something that misrepresents his/her appraiser role, then there is no limitation on performing other roles.
But if the appraiser is requested to sign a report as an appraiser, then USPAP rules apply and his/her appraiser role should be given priority.
A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an:
a) unenforceable promise based on past consideration.
b) enforceable output contract.
c) enforceable requirements contract.
d) unenforceable, illusory contract.
Answer:
C) enforceable requirements contract.
Explanation:
A requirements contract is a contract between one organization and its vendor. The vendor agrees to supply as much of a good or service that the organization may need and require, and the organization agrees to only purchase the good or service from that specific vendor.
In this case, Elfredo agrees to supply all the goods needed by Derkin, and Derkin agrees to buy the goods it needs only from Elfredo.
The _____ is the belief that the firm should dedicate all of its planning, policies, operations, and efforts to the satisfaction of the customer
Answer:
The answer would be MARKETING
Explanation:
"Marketing is not the art of selling what is offered, but of knowing what should be sold"
It is important to take into account the 4 p´s
1. Product Policies
2. Price Policies
3. Distribution Policies
4. Promotion Policies
Influential factors can be:
1. Political Factors
2. Legal Factors
3. Cultural Factors
4. Economic factors
5. Demographic Factors
6. Natural resources
7. Socio-Economic Structure
Answer:
Marketing concept
Explanation:
Marketing concept is a philosophy which led to the belief that consumers are driving forces that are important to the success of businesses. As such, firms or companies have to first determine or assess the needs of consumers.
When the needs have been determined, a firm or company can design and dedicate plans, policies, efforts and operations towards satisfying customers needs in ways that would make the firm or company beat competition from their competitors.
Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible.
Answer: "because each country tries to push the other as close to the limits of the terms of trade as possible"
Explanation: This means that the opportunity costs of each country is being considered and cannot be violated by moving past the limits of the terms of trade. In other words, each country is poised to gain by not failing to keep the alternative(opportunity cost) goods bought from the other country equal or less in value to the sales to that country.
Ultra Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inventory 20,000 units at $13 1/20 Purchase 30,000 units at $15 1/23 Purchase 40,000 units at $17 1/31 Sales at $20 per unit 50,000 units Ultra uses the LIFO method to determine the value of its inventory. What amount should Ultra report as cost of goods sold on its income statement for the month of January?
Answer:
$830,000
Explanation:
Ultra Co.'s inventory for January:
Date Number of units Unit balance Unit cost Total cost
January 1 20,000 20,000 $13 $260,000
January 20 30,000 50,000 $15 $710,000
January 23 40,000 90,000 $17 $1,390,000
January 31 (50,000) ($16.60) ($830,000)
Ending inventory 40,000 $560,000
Using the last-in, first-out (LIFO) method, the COGS = (40,000 units x $17 per unit) + (10,000 units x $15 per unit) = $680,000 + $150,000 = $830,000
A forecast that addresses the business cycle by predicting planning indicators is:______A. an environmental forecast.B. a technological forecast.C. an economic forecast.D. a demand forecast.
Answer:
The correct answer is C. an economic forecast
Explanation:
A forecast that addresses the business cycle by predicting planning indicators is an economic forecast
GOOD LUCK
Answer:
dunno
Explanation:
A sales associate employs a licensed personal assistant. The assistant will prepare comparative market analyses (CMAs), design property flyers, hold open houses, and prospect for listing appointments. The assistant will be paid a salary of $12 per hour and 20 percent of the commissions received by the sales associate. Which method of payment will satisfy all legal requirements?
a. The associate may pay the salary and must withhold taxes on the salary, but the broker must pay commissions.
b. The broker must pay both the salary and 20 percent of the commissions, giving the remainder of the commission to the sales associate.
c. The sales associate need not withhold taxes because the personal assistant is an independent contractor.
d. It is not legal to pay a personal assistant, whether licensed or unlicensed, a portion of a real estate commission.
Answer:
A) the associate may pay the salary and withhold taxes, but the broker must pay commissions.
Explanation:
The sales associate works for the broker and his/her assistant works for him. Therefore the sales associate is responsible for paying the assistant's salary and withhold taxes since he is the employer. But since the assistant will also earn 20 percent of the sales associate's commissions, that should be paid by the broker directly (80% to the sales associate and 20% to the assistant).
Final answer:
The sales associate can pay the assistant a salary and withhold taxes, but the broker must pay the commissions to maintain legal compliance in the real estate industry. Therefore, the correct answer to the original question is: a. The associate may pay the salary and must withhold taxes on the salary, but the broker must pay commissions.
Explanation:
The correct method of payment that satisfies all legal requirements is that the sales associate may pay the salary and must withhold taxes on the salary, but the broker must pay any commissions. This aligns with the fact that in most real estate agencies, the paycheck of sales employees is a combination of a base salary and commissions. Commissions, which are usually a percentage of sales volume or profits generated, are typically handled by the brokerage firm and are governed by strict industry regulations to ensure legal compliance.
Regarding the employment of a personal assistant in the real estate industry, it is essential to understand that while the sales associate can pay a salary to the assistant, the commission aspect has to go through the employing broker. This is because in the real estate industry, only licensed brokers are permitted to handle commissions as they are the ones who actually engage with the clients under agency agreements. Paying a commission to an assistant directly could potentially violate state laws governing real estate transactions.
This ensures that the compensation structure is in line with legal standards, and both the assistant and sales associate are appropriately compensated for their services.
Online, immediate status updates from Airlines about their flights is an example of e-commerce's effect of:
Select one:
a. Elimination of distance and routinization
b. Elimination of distance and searching
c. Homogenization of time and sort/re-sorting
d. Homogenization of time and routinization
e. Homogenization of time and searching
Answer:
D) Homogenization of time and routinization
Explanation:
E-commerce software has changed a highly customized activity (determining where and how an individual could fly to) and reduced it to a simple routine. Customers can check their flight status whenever they want. They do not have to wait to contact a travel agent or even wait for a travel agency to open. Therefore time has been homogenized and transactions routinized.
You are the marketing manager for a multi-state auto dealership in the Midwest. It is that time of year when your fleet of autos goes through major model year changes. You are putting the final touches on your pricing strategy to facilitate getting your inventory of autos low enough to make room for the new models.
What is the practical problem involved in using your current sales and commission data to make pricing decisions?What pricing strategy solution would best address that problem?
1. Problem: You have a clearer knowledge of the supply side of the pricing equation than you do of the demand side. Solution: Periodic discounting to keep pace with demand.
2. Problem: You are committed to the idea of maximizing profits for last year's models. Solution: Increase the price of last year's models, emphasizing their future unavailability.
3. Problem: Your current sales and commission data are hard to quantify to formulate a pricing strategy. Solution: When a potential customer appears interested, formulate an individualized price for that person.
4. Problem: You are committed to the idea of maximizing profits for next year's models. Solution: Keep the prices of last year's model the same, so that the new model's prices look more desirable.
5. Problem: Your commissions add to the cost of the cars, decreasing their attractiveness as bargains. Solution: Eliminate your commissions to reduce inventory.
Answer:
1. Problem: I have a clearer knowledge of the supply side of the pricing equation than I do of the demand side. Solution: Periodic discounting to keep pace with demand.
Explanation: There is an established relationship between the demand and supply of goods and services as price changes, so it is necessary I as the marketing manager I reduce the price or give some percentage discount in order to increase the demand,this knowledge is effective in managing the supply of goods and services which will help to prevent wastages especially as it has to do with product whose demand tends to be seasonal.
Final answer:
The primary issue is comprehending the demand side when making pricing decisions based on current sales and commission data. A suitable solution is a pricing strategy that involves periodic discounting while maintaining the perceived value of the vehicles.
Explanation:
The practical problem with using current sales and commissions data to make pricing decisions is understanding the demand side of the equation, as this can greatly impact the effectiveness of various pricing strategies in a market with imperfect information. One of the strategies, based on buyers' perception of price as an indicator of quality, suggests that raising prices could potentially lead to an increased perception of automobile quality, thus, paradoxically, increasing sales despite the higher price point. Conversely, decreasing prices with the aim of clearing inventory could inadvertently signal lower quality, deterring potential customers. It's crucial for the marketing manager to consider this dynamic when planning the pricing strategy to make room for new models.
As a solution, a multifaceted pricing strategy that not only focuses on reducing inventory levels through periodic discounting to match demand but also communicates the value and quality of the cars despite the lower prices could be effective. This could include creating marketing campaigns that highlight the reliability and features of the vehicles, even if they are last year's model. The key is to strike a balance between making the cars attractive price-wise while still maintaining their perceived value. Additionally, offering incentives that do not directly alter the car's price, like extended warranties or service packages, might help retain the perception of quality.
The date a cash dividend becomes a binding legal obligation to a corporation is theA. payment date.B. record date.C. earnings date.D. declaration date
Answer:
D. declaration date.
Explanation:
The dividend payment becomes legal obligation, when it has been declared by Directors and approved by shareholders in annual general meeting of the company.
The date on which the upcoming dividend payment is announced and declared by the board directors of the company is known as declaration date.
Therefore, the answer is D. declaration date.
The date a cash dividend becomes a binding legal obligation is the declaration date, which is when the board of directors of a corporation officially approves the payment of dividends to shareholders.
Explanation:
The date a cash dividend becomes a binding legal obligation to a corporation is the declaration date. This is the date that the board of directors of a corporation officially approves the payment of a dividend to shareholders.
Dividends are direct payments from a firm to its shareholders, and a corporation is a business owned by shareholders who have limited liability for the company's debts, yet receive a share of the company's profits. After this declaration date, the dividend becomes an outstanding debt owed by the corporation; therefore, the corporation is legally obligated to make the dividend payment.
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A brick fence straddles the property line of two neighbors. The neighbors agree not to damage it in any way. This is an example of:
Answer:
A party wall
Explanation:
A party wall
A Party wall which sometimes also called a parting wall is referred to that wall which is used or shared by both property owners. The purpose of this wall is to separate the two adjoining owners, therefore, thickness varies from 9 to 12 inches. Party wall agreement need to signed between both sharing owners to make any repair work on the party wall.
If the current price of a product is below the market equilibrium price, there is ________ of this product.
When the current price of a product is below the market equilibrium price, it suggests a shortage of the product because supply cannot meet the increased demand.
If the current price of a product is below the market equilibrium price, it means there is a shortage of this product. When the price of a product is less than the equilibrium price, the demand for the product exceeds the supply. This is because at a lower price, consumers tend to buy more of the product, but producers are unwilling to supply as much because the price is not high enough to cover their costs, resulting in a shortage.
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If a product's price is below market equilibrium, there is an excess supply. This can occur when factors such as increased production or declining demand force the market price to drop below the cost of production.
Explanation:If the current price of a product is below the market equilibrium price, there is an excess supply of this product. This happens because producers are willing to supply more at the higher equilibrium price than consumers are willing to buy, resulting in an surplus of goods.
Let's take an example of a market situation. When the demand for a product shifts back to the left or supply shifts out to the right, the market price can drop to low levels—sometimes even below the cost of production. An instance would be when a store has a going-out-of-business sale and sells goods at prices below the cost of production. This could drive the market price down below their cost of production and is a manifestation of market dynamics.
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Consumers don't care which supplier they buy from in a perfectly competitive market because:________A) the outputs of the firms in a perfectly competitive market are all the same.B) the consumers have no choice regarding who they buy from.C) price is always low enough that the choice of supplier doesn't matter.D) all of the above.
Answer and Explanation:
A) the outputs of the firms in a perfectly competitive market are all the same.
Answer:
A) the outputs of the firms in a perfectly competitive market are all the same.
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Consumers don't care which supplier they buy from in a perfectly competitive market because the outputs of the firms in a perfectly competitive market are all the same.
Consumers have a choice from whom to buy from because there are many sellers in the industry.
Market prices are set by the forces of demand and supply.
There are free entry and exit of firms into the industry.
I hope my answer helps you
includes all the activities in selling goods or services directly to final consumers for personal, non-business use.
a. Wholesaling
b. Retailing
c. Procurement
d. Promoting
e. Warehousing
Answer: Option B
Explanation: In simple words, retailing refers to the process in which an organisation makes their produced goods or serve to the end consumer efficiently. The retailing adds the value of the commodity by providing it to the end consumer more easily as everyone would not be able to collect the desired commodity directly from supplier.
Any business unit that is involved in the activity of purchasing the goods and selling the goods further for a margin is involved in retailing process. Retailer usually collects its inventory from the whole seller appointed by the producer.
Megabrics Inc., a truck manufacturing company, installed windmills to generate power for its manufacturing plant. Almost 45% of the power used by the plant is generated by the windmills. In the given scenario, the step taken by Megabrics Inc. most likely exemplifies a(n) _____.
Answer:
C) sustainability initiative
Explanation:
Sustainability initiatives refer to activities carried out by companies in order to reduce their negative environmental impact, e.g. use of renewable energy sources, reduction in the use of paper, efficient water use, etc.
In this case, Megabrics is generating 45% of its electric power from a renewable resource (wind).
A buyer leases a property for a period of time and then exercises an option to buy. Which of the following best describes the Texas Real Estate Commission’s position regarding the real estate agent's role in the option contract?
Answer:
A. TREC discourages licensees from getting involved in the negotiations.
Explanation:
Based on the information provided within the question it can be said that the Texas Real Estate Commission discourages licensees from getting involved in the negotiations. This is mainly due to the fact that the Texas Real Estate Commission believes that they do not have the resources or experience necessary to deal with these negotiations.
In the loanable funds market, – supply funds to – either directly or indirectly. A direct method is to buy –. The most common indirect method is to deposit money with –, which, in turn, make loans to borrowers. banksthe governmentthe borrower’s productsstocks and bondssaversborrowers.
Answer:
The correct answer is Savers, Borrowers, Stocks and Bonds, Banks
Explanation:
The market for loanable funds is one in which loanable funds are traded and, therefore, determines the interest rate of the funds based on supply and demand.
Go ahead that the market of loanable funds is a market. It seems obvious, but this fact greatly facilitates their understanding and explanation. Markets, as a general rule, are balanced according to the law of supply and demand. Now what is traded? Money is traded. Specifically, loanable funds.
Loanable funds, as defined by economic theory, are those funds available to lend in an economy. In an economy we can differentiate between those who "have" money "(savers) and those who need money (investors).
Technically, savers (who have money left over) are called surplus agents. Meanwhile, investors (who lack money) are known as agents with deficits.
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 in.
Answer:
commercial banks and thrift institutions
Explanation:
Oligopoly is a market in which a _____ number of _____ firms compete.
Answer:
Oligopoly is a market in which a small number of interdependent firms compete.
Explanation:
In an oligopoly, a small number of firms dominate a market and depend on each other as they make decisions.
Before a firm makes decisions in an oligopoly, it has to consider the actions of other competing firms and possible reactions to its decision.
Firms may also choose to compete against rivals or to work together, depending on the intended goal.
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners. Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in
a. Cornell's wrongful dissociation and liability for any damages.
b. the automatic termination of Equity Lending's legal existence.
c. nothing with respect to Cornell or Equity Lending.
d. Cornell's liability for all of Equity Lending's debts
Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in Cornell's wrongful dissociation and liability for any damages.
Option A
Explanation:
The creditor uses his home equity as collateral loans. A domestic equity loan is a debt form. The debt is based on the price of the land, and an appraiser from the lending institution calculates the property’s value.
Equity finance is a way to fund the business by raising money from creditors. Funding equities means raising money by providing investors some pieces of your business, known as shares. When a company owner uses equity funds, he sells part of his stake in his firm.
If there is a breach on a loan agreement, the first and most common solution used by the lenders is the harm compensation. This may include the difference in the loan volume and the price of new credit, and any reduction of profit or loss.
Cornell's unauthorized assignment of his partnership interest leads to his wrongful dissociation and liability for damages according to the partnership agreement. Specifically, this aligns with option 'a' - Cornell's wrongful dissociation and liability for any damages.
Bryn, Cornell, and Duke are general partners in Equity Lending. According to their partnership agreement, assigning an interest to a creditor without the consent of the other partners constitutes a breach. When Cornell assigned his stake to Financial Consultants Corporation without receiving consent from Bryn and Duke, it resulted in an unauthorized act.
Consequently, Cornell's wrongful dissociation from the partnership occurs, making him liable for any damages arising from this action.
In which one of the following instances is rivalry among competing sellers notmore intense?
A. When certain competitors are dissatisfied with their market position and make moves to bolster their standing
B. When strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly-acquired competitors into stronger market contenders
C. When competitors are fairly equal in size and capability
D. When the products of rivals are weakly differentiated, buyer switching costs are low and market demand is growing slowly
E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industrymembers
Answer: E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members
Explanation:
The more the number of players in an industry the more it gets congested and especially for the competing sellers. The decision for increasing or reducing price is met by follower firms to do the same thing. It gets less competitive because you know all the players in the industry would be following the same practices and doing the same thing.
With numerous competitors in a market, the actions of individual firms are diluted, lessening the intensity of rivalry. This contrasts with conditions like equal competitor size and capacity, aggressive market position moves, and weak product differentiation and slow market growth, which fuel competition.
Explanation:In this scenario, rivalry among competing sellers is likely to be least intense in the instance of option E: When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. When a market is saturated with numerous competitors, the actions of any single firm are diffused across the marketplace, reducing the palpability of rivalry. In contrast, the presence of intense competition is more evident in scenarios such as when competitors are of equal size and capacity (option C), when companies take aggressive action to improve their market standing (options A and B), and when weak product differentiation and slow growing demand maintain friction among rivals (option D).
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A firm's capital structure refers to the________.
A. division of a firm's assets into current and fixed assets.
B. amount shareholders have invested into the firm.
C. types of fixed assets owned by the firm. mix of debt and equity used to finance the firm's assets.
D. amount of cash and cash equivalents held by a firm.
Answer:
C. types of fixed assets owned by the firm. mix of debt and equity used to finance the firm's assets.
Explanation:
Capital structure refers to the combination of equity and debts that are used to finance a company's assets and operations. Debts are borrowed funds and may include loans and bond. Equity is the owner's funds and maybe in the form of shares and retained earnings. The capital structure consists of both long term and short-term debts.
The ratio of debts to equity helps evaluate how risky a company's borrowing practices are. Investors consider a company with a high debt-to-equity ratio riskier. A company's optimal capital structure is the business's ideal balance between equity and debt financing.
The capital structure of a firm refers to the combination of debt and equity used to finance its operations and growth.
Explanation:A firm's capital structure refers to the mix of debt and equity used to finance the firm's assets. In simple terms, it represents how a firm finances its overall operations and growth by using different sources of funds, which primarily include debt (borrowed money) and equity (owned capital). For instance, if a firm is financed by 50% debt and 50% equity, the capital structure is known as 50:50. The mixture of a firm's debt and equity is a critical element affecting its financial stability and growth, and it can differ from firm to firm based on their operational strategy and financial goals.
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All of the following terms are the same regardless of if the policy is life insurance or an annuity, except:_______.
Both life insurance and annuities are financial products offered by insurance companies for different purposes: life insurance provides a death benefit while annuities provide scheduled payments for retirement. The term that could differ between the two may be 'death benefit' as it is specific to life insurance.
The question pertains to the terms that are common to both life insurance policies and annuities, with one exception being sought. Both life insurance and annuities are financial instruments offered by insurance companies. Life insurance provides a death benefit to beneficiaries upon the death of the insured, while annuities offer a series of payments at predetermined intervals during the life of the annuitant, typically for retirement purposes.
In the 1970s and 1980s, insurance companies sought to innovate with adjustable-rate policy loans and variable annuities to reflect the increasing financial sophistication of the market and to provide policyholders with more flexibility and potential benefits aligned with market conditions. Policy loans are based on the cash value of a whole life insurance policy and were traditionally set at a fixed rate.
One potential exception in the terms used for both policies might be the concept of the 'death benefit' that is specific to life insurance, as it is payable upon the death of the insured, differentiating it from annuities which pay while the annuitant is alive.
Variable annuities and life insurance are mostly similar, except for death benefits.
Variable annuities and life insurance share similarities, except in the case of death benefits. In both, the idea is to provide a source of income or financial security over time through scheduled payments or a lump sum. However, the key difference lies in the payout scenario when it comes to the death of the insured.
A truck is purchased on credit. For this transaction, identify the effect on the accounting equation. a. Liabilities increase and owners' equity decreases. b. Liabilities decrease and assets decrease. c. Assets increase and owners' equity increases. d. Assets increase and liabilities increase.
Answer:
d. Assets increase and liabilities increase.
Explanation:
When a truck is purchased on credit, since cash is not paid, the cash account is not involved.
This represents an increase in asset while a liabilities in form of an obligation to pay for the asset also arise.
As such, there is an increase in asset and the liabilities balance.
Therefore, the right option is d. Assets increase and liabilities increase.