Answer:
The correct answer is: point at which the marginal labor costs equal the marginal revenue generated for the firm from that last worker employed.
Explanation:
To begin with, in neoclassical microeconomics, the marginal revenue productivity theory of wages establish that companies will employ workers up to the point at which for the last worker employed the marginal revenue product of labor equals the real wage that will be paid to the worker in where if the marginal revenue that the last worker brings is less than the wage rate then it will cause a decrease in the profits to keep employing that last worker and the correct action will be to fired him.
On December 31, 2005, Grey, Inc. owned 90% of Winn Corp., a consolidated subsidiary, and 20% of Carr Corp., an investee in which Grey cannot exercise significant influence. On the same date, Grey had receivables of $300,000 from Winn and $200,000 from Carr. In its December 31, 2005, consolidated balance sheet, Grey should report accounts receivable from affiliates of:______a) $500,000b) $340,000c) $230,000d) $200,000
Answer:
d) 200,000
Explanation:
Grey Inc. owned 90% of Winn Corp, which is classified as subsidiary and is accounted for by consolidating the financial statements of the subsidiary.
Grey Inc. owned 20% of Carr Corp. and does not have significant influence so indicating that the investment is supposed to be classified at fair value.
Consolidation Method of accounting involves adding all assets and liabilities of the subsidiary in the financial statements of Parent Company. However, inter company balances (receivable / payable) are eliminated and thus are not included in consolidated financial statements to avoid double counting, thus the balance receivable from Winn Corp, is not included in the consolidated balance sheet of Grey Inc.
Change in fair value of Carr Corp is taken either in profit / loss or directly taken to statement of changes in equity depending on the policy of Grey Inc. However any receivable / payable between shareholder and the invested company appears as it is in the balance sheet, therefore the balance of $200,000 receivable from Carr Corp shall appear as receivable in consolidated balance sheet of Grey Inc.
Final answer:
Grey, Inc. should eliminate the receivables from the consolidated subsidiary Winn Corp. in the consolidated balance sheet but include the receivables from Carr Corp., resulting in accounts receivable from affiliates amounting to $200,000.
Explanation:
When preparing consolidated financial statements, a parent company must eliminate any intercompany transactions and balances with its consolidated subsidiaries. Since Grey, Inc. owns 90% of Winn Corp., which is considered a consolidated subsidiary, any receivables from Winn should be eliminated in the consolidated balance sheet. However, the 20% ownership of Carr Corp. indicates an investment without significant influence, thus financial reporting for this stake is treated differently, typically using the cost or equity method, and should not be eliminated. Therefore, Grey should report the $200,000 from Carr as accounts receivable in its consolidated balance sheet.
Consequently, the correct amount of accounts receivable from affiliates that Grey should report is $200,000.
An issuer has filed a registration statement in the state proposing to offer 500,000 shares in a combined primary and secondary distribution, consisting of 300,000 newly issued shares and another 200,000 shares being offered by the officers of the firm. Under Uniform State Law, the:_______.
a. 500,000 shares being sold is an issuer transaction.
b. 300,000 shares being sold is an issuer transaction and the 200,000 shares being sold is a non-issuer transaction.
c. 300,000 shares being sold is a non-issuer transaction and the 200,000 shares being sold is an issuer transaction.
d. 500,000 shares being sold is a non-issuer transaction.
Answer:
b. 300,000 shares being sold is an issuer transaction and the 200,000 shares being sold is a non-issuer transaction.
Explanation:
A non-issuer transaction is a transaction that does not directly benefit an issuer or it was not directly executed to benefit an issuer.
According to the Uniform State Law, an entity involved in the sales of certificates of interest, leases, mining titles among others is officially exempted from being labelled as an issuer. Hence, the entity (officers of the firm) in the question are non-issuer brokers.
Specifically, when the sales of stock are carried out by someone or an individual who is not a registered stockbroker, that individual officially becomes what is called 'a non-issuer broker-dealer'. The implication is that such a transaction is to be exempted from the registration requirements of the Security Exchange Commission.
In this question, since the issuer newly issued 300,000 shares while the remaining 200,000 in the proposed combination was offered by Officers of the firm - non-issuer broker-dealers. The Law states that it must be separated to show that 300,000 shares are sold in an issuer transaction (Primary) directly involving an official issuer while 200,000 shares are sold in a non-issuer transaction (Secondary).
Fabian was finding it difficult to acquire a credit card that would suit his needs. He checked his credit report to determine why he was facing these difficulties. What would have had a negative impact on Fabian’s credit score and brought it down?
A.
paying bills on time
B.
paying mortgages installments on time
C.
not having any overdrafts
D.
irregular and missed loan payments
E.
purchasing multiple household items
Answer:
D.
irregular and missed loan payments
Explanation:
Missing and missed loan payments cause one to have a poor credit score. A credit score is a numerical representation of an individual or institution's debt worthiness. A high credit shows that the individual is a trusted borrower.
A high credit score comes about if one has a history is repaying his or her obligation promptly. The individual does not skip on their regular installments repayment. Lending institutions use borrowing history to predict how a borrower is likely to behave if credit is advanced to them. A high credit score shows that the borrower is unlikely to default to his repayment.
Answer:
D.
irregular and missed loan payments
Explanation:
Which of the following statements is false?
a) BPM is a task-oriented approach.
b) BPM can help companies reduce costs.
c) BPM can help companies increase revenue.
d) BPM can improve customer satisfaction.
e) BPM can improve organizational flexibility
Answer:
The correct answer is a) BPM is a task-oriented approach.
Explanation:
Business process management is making an organization’s workflow more effective, more efficient and more capable of adapting to an ever changing environment. In Simple words it means helping a business reach its goals and ojectives.
From the defination it is clear that it is an on going process. This management of making company better and more profitable is endless. So BPM is not a task oriented approach but ungoing function as their is always a room for improvement.
Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100 shares. They know that Fay got her information from Dhani. When Eureka publicly announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
Under the Securities Exchange Act of 1934, Geoff is most likely __________.
Answer: An insider trader.
Explanation: he uses the inside secretive information that has been stealthily communicated to him through grapevine means to enrich himself.
A $1,000 par value bond with a conversion price of $50 has a conversion ratio of
a. $40
b. 40 shares
c. $20
d. 20 shares
Answer:
Conversion ratio will be 20 shares
Explanation:
We have given bond value = $1000 per bond
Conversion price = $50
We have to find the conversion ratio
Conversion ratio is the ratio of bond value per bond to the conversion price
So conversion ratio will be equal to [tex]=\frac{bond\ value\ per\ bond}{conversion\ price}=\frac{1000}{50}=20\ shares[/tex]
So conversion ratio will be 20 shares
So option (D) will be correct answer
The definition of marketing implies that ____ should receive benefits from exchange relationships.
Answer:
The correct answer is both customers and businesses.
Explanation:
The definition of marketing implies that both customers and businesses should receive benefits from exchange relationships.
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit."
Marketing measures unfulfilled needs and desires. In short it includes five Ps that is product, price, place, packaging and people. All businesses carries these activities to make profit and satisfy customer to ensure future profits.
The definition of marketing suggests that in a voluntary exchange, both buyers and sellers should benefit from the transaction, with each party expecting to gain something of greater value than what is given up.
The definition of marketing implies that both parties should receive benefits from exchange relationships. This means that in a voluntary exchange, both the buyer and the seller expect to gain something of more value than what they are giving up. This fundamental principle is key in private markets, such as those for cell phones, where an efficient platform is established to facilitate the interactions between buyers and sellers, hence determining the production and allocation of goods. Focusing on voluntary exchanges, it's important to note that no one who sells anything voluntarily expects to receive something of lesser value in return. Instead, they aim to receive something they value more. This is a representation of the economic thinking that voluntary exchange leads to mutual benefits, enhancing both parties' well-being. Markets serve as social institutions that play a crucial role in how goods and services are distributed through market exchanges, which are regulated by supply and demand. These market interactions provide the basis for trade within an economy, helping to distribute resources, goods, and services efficiently. However, it's worth mentioning that there can be externalities when a voluntary exchange affects a third party who is not involved in the transaction.
A person wishes to convey any and all interests in a property to another without making any assurances as to encumbrances, liens, or any other title defects on the property. This party would most likely use which of the following types of deed?
Answer:
c) A Special Warranty Deed
Explanation:
First, the multiple options for the question
a)A quitclaim deed
b) A sheriff's deed
c) A special warranty deed
d) A partition deed
Warranty deeds are documents used mostly in the sales of real estate properties either commercial or residential. It is most useful when the transfer or sale of property is done between parties that are not familiar with one another. The two types of warranty deeds are General Warranty Deed and the Special Warranty Deed. The coverage guaranteed is the difference between the two types of warranty deeds.
In using a special warranty deed, the seller who is also the grantor of the warrant, only guarantees against issues, damages and defects that occur during the grantor's physical ownership of the property. This type of warrant does not make assurances or guarantees for defects in title on the proprty and defects that occured before ownership of the property. It is also called grant deed or covenant deed.
General Warranty on the other hand covers all issues, damages and defects on the sold property.
Since, the person only wishes to convey all interests without warrants on liens, encumrances and any other title defect, the deed is the Special Warranty Deed
Which of the following sites is not one of the New Seven Wonders of the World?
Great Wall of China
Taj Mahal, India
The Western Wall, Israel
Petra, Jordan
Answer:
The Western Wall, Israel
Explanation:
A campaign called The New 7 Wonders of the World was launched in 2000 to select the Seven Wonders of the World from a list of 200 current structures. Option C is correct .
What was Seven Wonder of the World ?The New 7 Wonders Foundation (N7W), located in Zurich, Switzerland, coordinated the popularity survey with free online voting and a little amount of telephone voting.
The winners were announced on July 7, 2007 in Lisbon at Estádio da Luz. The poll was criticized for being unreliable in part because it allowed for multiple votes. New 7 Wonders Foundation "driven the largest poll on record," according to John Zogby, founder and current President/CEO of the polling company Zogby International, based in Utica, New York.
There were many different official responses to the program. Several nations while some minimized or attacked the competition, others praised their finalist and sought to increase the number of votes voted for it. The United Nations Educational, Scientific, and Cultural Organization first assisted the New 7 Wonders Foundation by offering suggestions on nomination selection (UNESCO).
Learn more about 7 wonder of the world here
https://brainly.com/question/22880705
# SPJ 2
If Japan does not have a comparative advantage in producing rice, the consequeces of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:
A. Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve.
B. the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.
C. the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall.
D. the price of rice in Japan will fall
Answer:
Let take B but iam not ready sure
If the government adopted a Japanese policy that restricted or outlawed rice imports, there would be a variety of negative repercussions, including an increase in the real earnings of Japanese rice farmers but a decrease in the real incomes of Japanese rice consumers.
What is the real income?Real income, also known as real pay when referring to a person's income, is the amount of money that an individual or business makes after taking inflation into account.
Real income is an individual's or a country's income after accounting for inflation. To determine it, divide nominal income by the level of prices.
Rise in the real income of Japanese rice producers, but a reduction in the real incomes of Japanese rice consumers, would be a number of unfavorable effects if the government implemented a Japanese policy.
Therefore, option B is correct.
Learn more about the real income, refer to:
https://brainly.com/question/17094716
#SPJ6
The capital asset pricing model:_______A) Depicts the total risk of a security. B) Measures risk as the coefficient of variation between security and market rates of return. C) Provides a risk-return trade-off in which risk is measured in terms of beta. D) Provides a risk-return trade-off in which risk is measured in terms of the market volatility.
Answer: Option c
Explanation: In simple words, the capital asset pricing model (CAPM) is a model used to determine an asset's hypothetically suitable necessary return rate to decide to attach assets to a diversified portfolio.
The equation takes into consideration the exposure of the asset to non-verifiable uncertainty , also expressed by the quantity beta (β) in the financial industry, as well as the expected market return and the expected return of a risk-free hypothetical asset.
Hence from the above we can conclude that the correct option is .
An agent tells a customer "I cannot sell you that stock, but if you want to buy it, let me know and I can sell it to you." The agent has attempted to induce a(n):A. offer to purchase from the customerB. offer to sell from the customerC. sale from the customerD. purchase from the customer
Answer:
(D) Purchase from the customer
Explanation:
The agent has been able to induce a purchase from the customer by building an emotional connection with customer.
A company’s before tax operating income is $1,000.
With a 35% tax rate, what is the company’s after-tax operating income?
Answer:
after-tax operating income = $650
Explanation:
given data
before tax operating income = $1,000
tax rate = 35%
to find out
after-tax operating income
solution
we get here after-tax operating income that is express as
after-tax operating income = before tax operating income ( 1 - tax rate ) ...............1
put here value we get
after-tax operating income = $1000 × ( 1 - 35% )
after-tax operating income = $1000 × ( 1 - 0.35 )
after-tax operating income = $1000 × 0.65
after-tax operating income = $650
Pearland, Inc. has 8,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 13% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred stockholders?
A. $34,615
B. $55,385
C. $7,200
D. $93,600
Answer:
D. $93,600
Explanation:
In order to find the total dividends paid out to the preferred stockholders we need to find the dividend per share and then multiply it by 8,000 as there are 8,000 preferred shares.
Dividend per share =
par value * dividend rate
90*0.13=11.7
Total amount paid to stock holders=
Dividend per share * no of shares
11.7*8,000=93,600
What would be the total cost of leasing a vehicle for four years that requires a security deposit of $1,000 (which would be withdrawn from your portfolio, which earns 9% per year), has monthly lease payments of $500, and has a mileage restriction of 20,000 with excess mileage resulting in a 10 cents per mile charge. Assume that over the life of the lease you exceed the mileage limitations by a total of 8,000 miles.
Answer:
total economic cost = $25,211.58
total accounting cost = $24,800
Explanation:
the total economic cost of leasing the vehicle includes the lease costs (monthly lease payments) plus the payment for excess miles (8,000 miles x 10 cents) plus the opportunity cost of the money withdrawn for the security deposit ($1,000 x 1.09⁴):
total economic cost = ($500 x 4 x 12) + (8,000 x $0.10) + ($1,000 x 1.09⁴) = $24,000 + $800 + $411.58 = $25,211.58
total accounting cost = ($500 x 4 x 12) + (8,000 x $0.10) = $24,000
Final answer:
The total cost of leasing the vehicle for four years, with monthly payments of $500 and an excess mileage charge for 8,000 miles, would be $24,800. This does not include the opportunity cost of the security deposit.
Explanation:
To calculate the total cost of leasing a vehicle for four years that requires a security deposit of $1,000 (which could be earning 9% per annum in a portfolio), has monthly lease payments of $500, a mileage restriction of 20,000 with a 10 cents per mile excess charge, and assuming 8,000 miles over the limit, we can follow these steps:
Security deposit loss due to withdrawal: This is the opportunity cost of removing money from an investment earning 9% annually. To compute the loss over four years, we use the formula for compound interest: Future Value = Present Value × (1 + Rate)^n. However, since the question does not require the calculation of opportunity costs and focuses on the lease payments, we do not include this in the cost.Multiply the monthly lease payment, $500, by the total number of months in the lease. Since a year has 12 months, for 4 years this will be: $500 × 12 × 4.Excess mileage charge: As the excess mileage is 8,000 miles and the charge is $0.10 per mile, the cost for excess mileage is 8,000 miles × $0.10/mile.Add these amounts together to find the total cost. The calculation would be as follows:
Total lease payments: $500 × 12 × 4 = $24,000Total excess mileage charge: 8,000 miles × $0.10/mile = $800Total cost of the lease: $24,000 + $800 = $24,800The total cost of leasing the vehicle over four years, not including the opportunity cost of the security deposit, is $24,800.
Zeta is an American multinational retail corporation. To move ahead of its competitors and increase revenue, Zeta began to employ a system to determine which products to stock and at what prices, and how to advertise to draw target customers. The process employed by Zeta is called _____. a. brand cannibalization b. retail channel omnification c. click-and-connect d. big data analytics
Answer: Option D
Explanation: Big data is an area that deals with respects of analyzing, systematically extracting data from or otherwise dealing with sets of data that are far too significant or complicated to be handled by conventional software applications for data management.
We may not test when we handle big data, but simply watch and monitor what is happening. Big data also frequently include data with sizes that surpass conventional software's capacity to process in an appropriate time and cost.
Hence from the above we can conclude that the correct option is D.
If a game is not sold out, the marginal costs to a team accommodating one more fan is(a) Almost infinite.(b) Half the average ticket price.(c) Essentially zero.(d) The inverse of marginal costs.
Answer:
(c) Essentially zero.
Explanation:
The cost of accomodating one more fan in a stadium that is not at full capacity (the game is not sold out) is almost zero because the stadium has the infraestructure to accomodate hundreds or thousands of fans.
The only cost is probably cleaning after the fan in case he or she throws away something in in or around his or her seat.
__________________ is the income (wages and other ""earned"" and ""un-earned"") that Households receive before income taxes are taken out..
Answer:
Personal Income
Explanation:
Personal income represents the totality of income an household or an individual receives. It can also be called the collective compensation an individual receives and this amount is subject to tax.
The component of an household's presonal income include income for various sources. Earned sources include; wages, salaries or any other compensation from either self-employment or employment with another company or oganisation. Un-earned income include distributions and interests and dividends most received from investments, income from rental of real estates and any profit received as a result of being part of a business.
The George Stigler quote, "...the degree of ‘market failure’ for the American economy is much smaller than the ‘political failure’ arising from the imperfections of economic policies ..." illustrates the advantage of which type of public policy toward monopolies?
a.antitrust laws
b.regulation
c.public ownership
d. do nothing
Answer:
d.-
Explanation:
Do nothing.
Many conservative consumer advocates said you should not pay more than 25% of your TAKE-HOME PAY on a mortgage payment
A. True
B. False
Answer:
True
Explanation:
There is a general consensus that one has to be very conservative and avoid spending more than 35 percent of pretax income on home insurance payment, property tax, and mortgage. However the conservative model clearly suggests that mortgage payment should not exceed 25 percent of take-home pay and any mortgage loan should not exceed a 15 year tenure.
Sodiaal is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. Before it purchased a controlling stake in Yoplait S.A.S. in 2011, General Mills paid Sodiaal for the right to sell Yoplait yogurt in the United States. This is an example of__________.A. licensing.B. a strategic alliance.C. exporting.D. a global joint venture.E. direct investment.
Answer: Option A
Explanation: In simple words, licensing refers to an official permit or authorization to do, use, or own something . A license may be given as a component of an agreement between certain groups by a party to some other party. A short-term license definition is "permission to use licensed content.
In general, regulators can issue a license to permit an operation that would otherwise be prohibited. It may involve a charge to be charged or a skill to be proven.
The provision may also serve to protect the authorities aware of a type of activity and provide them with the opportunity to establish terms and restrictions.
Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that:
a. both countries would have permanent increases in their growth rates, but the increase would initially be larger in Fretonia.
b. both countries would have permanent increases in their growth rates, but the increase would initially be smaller in Fretonia.
c. both countries would have temporary increases in their growth rates, but the increase would be larger in Fretonia.
d. both countries would have temporary increases in their growth rates, but the increase would be smaller in Fretonia.
Answer:
Correct option is (d)
Explanation:
Savings and growth are directly proportional. Higher the savings, higher will be the growth in the economy. However, growth experienced by poor country is more than that experienced by rich country.
Here, Fretonia has larger capital stock indicating higher growth as compared to Libstien. So when savings rate is increased in both the countries, Libstien will experience higher growth as compared to Fretonia. Growth would be temporary though as it will not have a long term impact.
Final answer:
Both Fretonia and Libstien would experience temporary increases in growth rates after raising their saving rates. However, due to Fretonia's larger initial capital stock, its growth rate increase would initially be smaller compared to Libstien's.
Explanation:
The question refers to two hypothetical countries, Fretonia and Libstien, which have identical macroeconomic structures except for the size of their capital stocks. When these countries increase their saving rates, the capital stock in each country will begin to grow. According to the principles of neoclassical economics and the Solow-Swan model, the growth rate of a country with a smaller initial capital stock is temporarily boosted as investments yield higher returns due to the higher marginal product of capital. Eventually, both countries will converge to a similar balanced-growth path, and the growth rates will normalize.
Therefore, reaching a higher growth path in Fretonia would typically initially yield a smaller increase because its large capital stock provides a lower marginal product of capital compared to Libstien with a smaller capital stock. As more capital accumulates, the growth rates in both countries will taper off, reflecting the diminishing returns to capital. Hence, the answer to the student's question is that both countries would have temporary increases in their growth rates, but the increase would be smaller in Fretonia.
Cosmo Techno, a new technology firm, invested $50,000 to obtain high-speed Internet services for fast and efficient transmission of information across its branches. In this scenario, the investment cost incurred by Cosmo Techno is an example of _____.
Answer: Communication cost.
Explanation:
Communication costs are the overall costs incur by an organization paid to a service provider or telecommunication company for service rendered, such cost includes internet, video conferencing, VoIP, fax equipment, cell phone, etc.
Communication cost for companies is fast increasing, and this is due to sophisticated technologies and companies operating in different countries.
Ways to keep communication cost low includes
• Use of social media platforms.
• Use of discounted services and refunds.
• Audit and monitor all the services the organization is paying for.
• Engage an IT expert .
Productivity = _____.
a. total revenue divided by number of Full Time Equivalents
b. total revenue divided by total output produced
c. total output produced divided by total revenue
d. total output produced divided by number of Full Time Equivalents
Answer:
d. total output produced divided by number of Full Time Equivalents
Explanation:
Productivity is calculate by having total goods and services divided by hours that an employee worked.
As strategic planner of the newly formed Business Technology Student Club, you are tasked with coming up with a goal to improve members' professional development. How would you employ the 'SMART goals' idea to ensure the members' professional development?
Answer:
Define the SMART goals to the club.
Explanation:
A goal is a preferred thought or idea for the future.
Step 1
Set Specific (S) target area for improvement. For example improving their ICT skills.
Step 2
Goal should be Measurable (M)
Using the ICT skills improvement goal for example, I would determine how to measure their performance. Could be through the quality or number of skills.
Step 3
Are the goals achievable or Attainable.(A)
By asking questions such as; would the resources be available to attain the set goals? or would it be impossible?
For example, would it be impossible for students to learn web design due to lack of sufficient computers.
Step 4
Are the goals realistic? (R)
What impact would reaching the goals have on the student? Is the goal reachable within the time?, these are some the questions to be asked.
Step 5
Is the goal Time bound?
Our SMART Goal should have a start and finish date. This is done for example by setting a deadline to achieve the goal of improving the ICT skills of students in the club. Let's say 6 months or 1 year.
Imagine that a food critic visits your restaurant and writes a positive review that was then published in a magazine. This is an example of.
Answer:
Public relations
Explanation:
Public relations -
It is the method to spread within an organisation or in society , is referred to as public relations.
The act can be done by an individual or organisation , expect in that particular field .
This method is adapted in order to freely advertise or publicize the goods or service .
Hence, from the given scenario of the question,
the correct term is public relations.
Which of the following statements are true? a. For all turning vehicles, the rear wheels follow a shorter path than the front wheels b. For all turning vehicles, the rear wheels follow a longer path than the front wheels c. For all turning vehicles, the rear wheels follow the same path than the front wheels d. It depends on the car
Answer:
Which of the following statements are true? It depends on the car
Explanation:
The vehicle length determines whether the rear gear wheels will follow a shorter path than the front wheels or otherwise
You have two equal investments that always have exactly opposite returns. how will your total value of both investments vary over time.a.it will go upb.it will go downc.it will stay the same
Answer:
c.it will stay the same
Explanation:
Without any other information available, and assuming that opposite returns means that when one investment gain X USD, the second invest loss -X USD, over the time the total value both investments remain the same. The value of investments, in this case, is the total portfolio value. Nevertheless, if opposite returns means that the gains are collected even though both returns are created because of divergent causes, then the correct answer would A (it will go up) and not C.
A customer purchases 1 XYZ July 50 call @ 5. The customer will breakeven at which of the following market prices for the underlying security?[A] 5[B] 45[C] 50[D] 55
Answer:
(D) 55
Explanation:
For the purchase of 1 XYZ July 50 call @ 5, the customer has already paid a call premium of $5 (indicated by the @5).
The exercise price of the call is $50, meaning the call option gives the customer the right to buy XYZ at $50.
Thus, the customer will break even when the market price of XYZ = the exercise price + the premium
= 50 + 5 = 55.
At that market price ($55), the customer would pay a total of $5 premium, plus an exercise price of $50, which equals $55 (same as the market price.
For most commercial property types, lease lengths can vary considerably. Therefore, both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms. Owners may prefer longer leases for all of the following reasons EXCEPT:
Answer:
Gain flexibility
Explanation:
Flexibility in business refers to continually trying to become more efficient and able to generate a higher profit.
When you sign longer contracts, you know how much money you are going to pay (the lessee) and receive (the lessor) in advance for several years. That reduces uncertainty and risks, but it also reduces (or almost eliminates) the possibility of higher returns since your investment becomes inflexible.