Answer:
D. Mission
Explanation: Mission is a term used to describe the what an organisation is,what it want to achieve as it continues its business. Mission statement is vital to Organisational success as it puts all the departments,and sub units of the Organisation on the same level in terms of what is to be achieved by the Organisation. Mission statement is essential for building unity of purpose and execution of task in the Organisation as all are focused on the MISSION OF THE ORGANISATION.
Subtracting the inflation rate from the interest rate on a bond coupon allows for easy calculation of _____. Select the best answer from the choices provided. A. investment doubling times B. inflation effects C. default risk D. TIPS values
Answer:
The Option C is correct because the return desired on an investment is always sum of two things, return on default risk and return for inflation compensation.
Desired return = Return on Default risk %age + Inflation compensation %age
So what we earn in real terms is return on defaul risk. The return in nominal term (also known as money terms) is always higher in percentage because the percentage also includes the inflation compensation.
Zenya is the founder of an online service that allows users to rent out spare rooms in their homes. She has hired a number of extremely bright employees whose opinions are central to the company's success in the fast-paced online services industry. Which type of strategic management process would be most likely to fully utilize the strengths embodied by her team and position the company to capitalize upon autonomous actions and serendipity?
Answer:
strategy as planned emergence
Explanation:
1) true or false ?
most marketers believe the benefits of market research outweigh the risk.
2) true or false?
advertisements have always been persuasive in nature.
3) true or false ?
endorsements are not permitted in advertisements, according to the federal trade commission.
Answer:
ture
false
false
Explanation:
The finance minister of a developing country demands a heavy payment for the approval of a multi-million dollar contract with a foreign company. this demand for the lump sum payment is called _____.
Answer:
Extortion
Explanation:
Extortion is the act of threatening or forcing another party to give you something, most of the time money.
In this case the minister in the developing country is demanding for payment before giving approval for the multi-million dollar contract.
The threat the minister is using against the company is to not approve Thier contract.
A pharmaceutical company announces that it has received Food & Drug Administration (FDA) approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $5.00, and insiders agree with analyst expectations. They too expect that, with this new drug, earnings will drive the EPS to $5.00. If the markets are assumed to exhibit strong form efficiency, what will happen when the company releases its next earnings report?
a. There will be some volatility in the stock price when the earnings report is released; it is difficult to determine the impact on the stock price.
b. The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
c. The stock price will increase and settle at a new equilibrium level.
Answer:
b. The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
Explanation:
If the markets are strong form efficient, it means the consensus of the market related to future impact of FDA approval on earnings would be correct, the stock price of today correctly estimates the future earnings, and therefore the stock price would not change when the earnings are released.
Jamie Patil is a candidate for the position of sales manager with Retrozz Furniture. She is going to be required to supervise several employees and can determine the direction in which she will complete the assignments given to her. What guidelines should she follow when classifying workers as exempt or nonexempt?
Answer:
The FLSA
Explanation:
Exempt workers refers to the workers who fulfill all the requirement to receive at least a minimum wage. Non-Exempt workers are the workers who don't.
This requirement was listed under The Fair Labor Standards Act of 1938.
Here are several of its requirements:
- Have worked over 90 days passed the trial period.
- Legal citizens of United States
- has the status of employment from the company. Meaning that you cannot act as a freelancer.
- Over the age of 18
Jamie Patil need to consider all of these requirements to classify whether her new hire is eligible for minimum wage.
___________ Involves decisions that result in brand-new markets, products, and often new businesses by acquiring new assets to develop the type of breakthrough decisions that fall in this category.
Answer:
Adjacent innovation
Explanation:
There are three ways to innovate in business:
1. Transformational
This is the most commonly thought of innovation. It has the potential to completely transform, create or eliminate entire industries. It involves one-in-a-million ideas that change the way the entire world lives and works.
This innovation is often seen as a means of disruption or a radical solution using breakthrough technology to achieve an unimaginable shift for markets that don’t exist yet.
2. Incremental
Incremental Innovation refers to the optimization of existing products for existing markets – ie. do what you’re doing but better: solving the current problems of your current clients, more effectively, sustainably and continuously.
It involves making smaller upgrades to existing products or services. The goal is to improve on existing products or services and renew interest in the marketplace.
3. Adjacent
Where Incremental innovation is all about improving existing products for existing markets, there are often opportunities to leverage an existing product, process, or infrastructure to reach new markets.
Simply put, adjacent innovation includes taking existing products into new markets and digital channels, or creating new digital products for existing markets. ie. Adjacent innovation involves entering a new market and connecting with a new audience by leveraging something the company already does well.
According to the Techstar’s video describing entrepreneurial journeys, and their efforts to support entrepreneurship, what is the final step that happens in an entrepreneur’s journey?
Answer:
Champion
Explanation:
According to Techstars, the final stage of an entrepreneur's journey is champion. This represents start-ups that have a chieved great success like Google, and they are championing the enterpreneur's journey by working with enterpreneurs at earlier stages.
The initial stages of enterpreneur's journey is: inspire, discovery, founder, startup, scale, and finally champion.
On December 30 of the current year, Azrael, Inc., purchased a machine from Abiss Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000. The first payment was made on December 30, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. On Azrael's current year December 31 balance sheet, the note payable to Abiss was A. $94, 244 B. $114, 244 C. $102, 922 D. $104, 611
Answer:
A) $94, 244
Explanation:
The agreement required 8 installment payment of $20,000 each, the first one was due on the same day the agreement was made (December 30). The December 31 balance account of the note payable equals the present value of the 7 remaining payments:
the present value factor of an ordinary annuity for 7 years ans 11% interest rate = 4.712
so the present value of the note payable = $20,000 x 4.7122 = $94,244
The country of Argonia imposes an ad valorem tariff of 10 percent on 1 million tons of rice imports, after which an out-of-quota tariff of 80 percent is applied. Which of the following trade policy instruments is Argonia using?
A. Subsidy
B. Tariff rate quota
C. Voluntary export restraint
D. Tariff ceiling
E. Local content requirement
Answer:
B. Tariff rate quota
Explanation:
B. Tariff rate quota - it is comprised of two policy instrument i.e. import quota and tariff to control and regularized imports.
Tariff rate quota implies a limitation on the number of goods that import from a foreign country. it is applied for certain period of time.
In the same way, Argonia imposes a 10% tariff on imports of 1 million rice.
ISM __________.
1. provides national and international leadership in purchasing and materials management, particularly in the areas of education, research, and standards of excellence
2. is a widely recognized professional society for persons interested in operations and supply chain management
3. seeks to be the preeminent professional association providing worldwide leadership for the evolving logistics profession through the development, dissemination, and advancement of logistics knowledge
4. is a leader in education and all aspects of quality improvement, including the Baldrige Award, ISO 9000, and continuous improvement activities
Answer:
1. provides national and international leadership in purchasing and materials management, particularly in the areas of education, research, and standards of excellence
Explanation:
Your investment banker has presented you with the following list of business characteristics of a small company your company is considering acquiring:
1. Market leadership
2. Large inventories
3. Lack of management depth
4. Cost advantages
5. Management turnover
6. Excess manufacturing capacity relative to market
Based on this list of characteristics, which of the following statements is true?
a. The list contains more weaknesses than strengths.
b. This list contains only strengths.
c. The list contains more strengths than weaknesses.
d. The list contains only weaknesses.
e. The list contains an equal number of strengths and weaknesses.
Answer:
A
Explanation:
The list contains more weaknesses than strengths
The list of weaknesses are:
Excess manufacturing capacity relative to market; If you are producing more than you are selling then its a weakness
Large inventories; that dont sell its a weakness
Lack of management depth; means that management does not have a proper foundation
Management turnover; if you keep changing management it will affect the company as skilled workers will be leaving
The list of strengths are:
Cost advantages; cost advantage against your competitors is an added strength
Market leadership; having a large market share is equally an advantage
Which statement is true about the gross profit method of inventory valuation?
a. It may be used to estimate inventories for annual statements.
b. It may be used to estimate inventories for interim statements.
c. It eliminates the need for physical inventories.
d. When calculated on selling price, it will always be more than the related percentage based on cost.
Answer:
b. It may be used to estimate inventories for interim statements.
Explanation:
As we know that
Gross profit = Sales - the cost of goods sold
By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.
Therefore, for interim statements, the gross profit method is required.
Final answer:
The gross profit method may be used to estimate inventories for interim statements. It uses the gross profit rate to estimate the cost of goods sold and ending inventory, but does not eliminate the need for physical inventories nor necessarily results in a higher selling price percentage compared to the cost percentage.
Explanation:
The gross profit method of inventory valuation is typically used to make a preliminary estimate of the inventory value, and it can be quite useful in various business scenarios. However, the truest statement among the provided options is:
b. It may be used to estimate inventories for interim statements.
This method involves using the previous or estimated gross profit rate to estimate the cost of goods sold, which can then be used to estimate ending inventory. It is often employed for preparing interim financial statements when taking a physical inventory is not feasible or practical. While it may sometimes be used to estimate inventories in annual statements, this is not its primary purpose. The method does not eliminate the need for taking a physical inventory, as physical inventories are still necessary for precise and accurate financial reporting, typically on an annual basis. Additionally, the method when calculated on selling price does not always equate to a higher percentage than the cost-related percentage; this is a mathematical evaluation that depends on the margins and markups of the products.
An important part of employee compensation is a benefits package, which might include health insurance, life insurance, child care, vacation days, retirement plan, parental leave, bonuses, etc. Suppose you want to conduct a survey of benefits packages available in private businesses in Hawaii. You want a sample size of 100. Some sampling techniques are described below. Categorize each technique as simple random sample, stratified sample, systematic sample, cluster sample, or convenience sample.
(a) Assign each business in the Island Business Directory a number, and then use a random-number table to select the businesses to be included in the sample.
simple random (b) Use postal ZIP Codes to divide the state into regions. Pick a random sample of 10 ZIP Code areas and then include all the businesses in each selected ZIP Code area.(c) Send a team of five research assistants to Bishop Street in downtown Honolulu. Let each assistant select a block or building and interview an employee from each business found. Each researcher can have the rest of the day off after getting responses from 20 different businesses.
Final answer:
The sampling techniques used in the scenarios are stratified sample, convenience sample, and stratified sample.
Explanation:
(a) The sampling technique used in this scenario is stratified sample. The population of boys is divided into three groups based on age, and players are selected from each group to form the soccer team.
(b) The technique used in this scenario is convenience sample. The pollster selects all human resource personnel in five different high tech companies, which is based on convenience rather than a random selection.
(c) The technique used in this scenario is stratified sample. The population of high school teachers is divided into two groups based on gender, and teachers from each group are interviewed.
Final answer:
The assignment of random numbers to select businesses represents a simple random sample, using ZIP Codes to include all businesses within selected areas is a cluster sample, and selecting businesses based on specific location by assistants represents a convenience sample.
Explanation:
To categorize each sampling technique for a survey of benefits packages in private businesses in Hawaii with a sample size of 100, let's analyze each scenario:
(a) Assigning each business a number and using a random-number table to select businesses would be a simple random sample. This method gives every business an equal chance to be included in the sample.(b) Dividing the state into regions using ZIP Codes, selecting a random sample of ZIP Code areas, and then including all the businesses within those areas is an example of a cluster sample. Every unit within the selected clusters is included in the sample.(c) Sending assistants to a specific location and letting them select businesses to interview is an example of a convenience sample. This method is based on ease of access and doesn't provide every business an equal chance to be selected, which often results in biased data.Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.75 each, he sells 100. At a price of $1.25 each, he sells 300. Round your answer to 1 decimal place. What is the elasticity of demand? Is demand elastic or inelastic over this price range? If demand had the same elasticity for a price decline from $1.25 to $0.75 as it does for the decline from $1.75 to $1.25, would cutting the price from $1.25 to $0.75 increase or decrease Danny's total revenue?
Answer:
Relative responsiveness of consumer to change in price is called elasticity of demand.
Elasticity of demand here is 7.
Demand is highly elastic.
Cutting the price from $1.25 to $0.75, total revenue remains same as the elasticity of demand does not change.
Explanation:
Percentage change in quantity demanded due to percentage change in price.
Elasticity of demand=% change in quantity demanded/percentage change in price.
Small change in price caused a huge change in quantity demanded.
You have $5,600 that you want to use to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. Which bank should you select if your goal is to maximize your interest income?
Answer:
It would be best to pick the annual rate as is the higher maong the given choised.
bank rates:
3.26 percent, compounded annually
3.20 percent, compounded monthly
3.25 percent, compounded semi-annually
3.10 percent, compounded continuously
3.15 percent, compounded quarterly
Explanation:
we move the rates to annual and check the effective rate:
[tex](1+r_n/m)^{m} -1 = r_e[/tex]
[tex](1+0.032/12)^{12} -1 = r_e\\r_e = 0.03247353(1+0.0325/2)^{2} -1 = r_e\\\\r_e = 0.03530625[/tex]
continuos rate:
[tex]e^{0.0310} -1 = r_e\\r_e = 0.031485504[/tex]
3.15 quarterly:
[tex](1+r_n/m)^{m} -1 = r_e[/tex]
0.0318740511
Options:[
A. 3.26 percent, compounded annually
B. 3.20 percent, compounded monthly
C. 3.25 percent, compounded semi-annually
D. 3.10 percent, compounded continuously
E. 3.15 percent, compounded quarterly
Answer:
C) 3.25 percent, compounded semi-annually
Explanation:
Usually the higher interest rate, the more money you will earn. But the frequency at which the interest rate is compounded may change the equation. Usually the shorter the compounding frequency, the higher the interest rate. E.g. a 10% compounded semi-annually yields 10.25% annually, but 10% compounded monthly yields 10.47%
we must determine the effective yearly interest rates:
3.26 percent, compounded annually = 3.26% annual3.20 percent, compounded monthly = 3.25% annual3.25 percent, compounded semi-annually = 3.28% annual3.10 percent, compounded continuously (daily basis) = 3.15%3.15 percent, compounded quarterly = 3.19%Since option C yields the highest effective yearly interest rate, that is the bank that you should choose.
*the formula for determining the effective interest rate = (1 + r/n)ⁿ, e.g. semi-annual n = 2
Nargis is interested in running a business and decides to open a branch of a successful falafel shop that her sister owns in another town. In this case, Nargis could be best described as a _____.
Answer:
franchisee.
Explanation:
Franchisee -
It is one of the common method used for creating a business .
Where the franchisee has the right to use the trademark , brand and sell the same brand .
Opening franchisee enables to expand the business and increases the production of the goods and services .
A franchises manages the very similar type of store or center in a very similar manner .
Hence , from the given scenario of the question,
The correct term is franchisee .
Daniel and his intramural team just won the co-ed volleyball tournament, and they’re celebrating at an all-you-can-eat pizza place. daniel has had four slices of pizza and is trying to decide whether to have a fifth slice. he does not have to pay for it, but he is thinking about whether the increased calories of the fifth slice are worth it. which foundation(s) of economics is he applying?
a. trade-offs
b. microeconomics
c. marginal thinking
d. the principle that trade creates value
Answer:
a. trade-offs
c. marginal thinking
Explanation:
Marginal thinking is when a decision maker evaluates the marginal benefits and marginal cost of a certain activity. Daniel is trying to evaluate if the extra calories (marginal cost) he would get from eating the 5th size of pizza (marginal benefit) is worth it.
Trade offs is also known as opportunity cost. It is what is sacrificed in order to carry out a certain activity. If Daniel eats the pizza, he's sacrificing a more healthy body for the extra slice of pizza.
I hope my answer helps you
The idea that the meaning and value of work is whatever the workers determine that it is simply doesn't challenge in any significant way Bowie's contention that employers have an obligation to provide meaningful work.A.TrueB.False
Answer:
FALSE
Explanation:
Worker is an individual or animal performing a particular or required task, or performing tasks in a certain manner. An example of a retail worker is a person working in a shop. A person who works tirelessly for hours a day on his homework is one illustration of a consummate professional.
An employer relates to the organisation, institution, governmental entity, agency, company, professional services firm, nonprofit association, small business, store, or individual employing or putting to work, a person named a worker or a staff member.
Thus, from the above we can conclude that the implementation of work is heavily dependent on the idea that both the parties, that is employer and worker, have regarding the term work
Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price of shelter (S, x-axis) is8) $100. Which of the following represents his budget constraint?
A) F = 250-505
B) S-5-02F
C) 500-2F+100S
D) All of the above.
Answer:
C) 500-2F+100S
Explanation:
Budget constraints:
Total Income = $500
Price of food = $2
Price of Shelter = $100
Quantity of food = F
Quantity of shelter = S
Expense on food = 2 x F = 2F
Expense on shelter = 100 x S = 100S
Total income = Expense on Food + Expense of Shelter
500 = 2F + 100S
This part C is wrong there is an equal sign between 500 and 2F in the original question which is attached with this answer please find that.
Which of the following statements is true of creative work environments? a. Work is less challenging when it demands attention and focus. b. Numerous studies have indicated that creative ideas cannot thrive under conditions of freedom. c. Supervisory encouragement of creativity occurs when management encourages risk taking. d. Workers become bored when they can do more than is required of them.
Answer:
Correct answer is (C)
Explanation:
Creative work environment can lead to job satisfaction and more productivity. There are numerous factors which can contribute towards creating work environment. The most important factor is to create freedom among the employees that helps to accomplish creative environment. Risk taking is also important, when supervisors are ready to take risks; it leads to more creative environment because every employee is allowed to think outside the box.
The true statement about creative work environments is that they encourage risk taking by management to foster creativity. These environments value intrinsic interest and benefit from collaboration among those working on similar projects.
Explanation:The correct answer to the question “Which of the following statements is true of creative work environments?” is c. Supervisory encouragement of creativity occurs when management encourages risk taking. Creative work environments often include certain elements that foster innovation and creativity. Risk taking is one of the key conditions wherein creative individuals are encouraged to venture into new, potentially risky approaches. Also, intrinsic interest plays a crucial role, as creative people are driven by their passion and interest in the work itself rather than external incentives such as money. Moreover, creativity thrives in an atmosphere where there is collaboration and social interaction, as creative individuals benefit from the support, aid, and challenge from others working on similar projects.
A client asks his accountant to ignore a mistake which overstated the accounts receivable account. The accountant decides that the accounts receivable account has to be corrected to state the correct amount based on the current accounting rules. Which stage of Kohlberg' Stages of Moral Development is the accounting reasoning?A. Stage 2 B. Stage 3 C. Stage 4 D. Stage 5
Answer:
B. Stage 3
Explanation:
Kohlberg's stages of moral development refers to the various stages of how individuals respond morally and under what circumstances. The theory is based upon how morals guide our actions and moral dilemmas faced by individuals.
Among the various stages defined by Kohlberg, Stage 3 corresponds to acting to serve the best interests of the client as well as maintaining good interpersonal relationships.
Under stage 3, an individual seeks social approval in his acts i.e his actions are governed by social values.
Which type of residential setting may care for one to three clients in a family-like atmosphere, including meals and social activities with the family?
Answer:
Foster home
Explanation:
Foster home - it is referred to that type of residential setting which accommodates people that are orphaned, neglected. it is referred to as the home in which people are raised in a family atmosphere which includes meals and extra activities.
Foster home comes into play when people are forgotten by their own family members. There can be numerous reasons behind forgotten from the abusive atmosphere within the family to the death of some near one.
Jack, a manager with Tiny Tots Toy Company, has just participated in a meeting that looked at future trends in the toy industry, and identified new challenges and opportunities for Tiny Tots. Jack's participation in this meeting was part of which function of management?
A) Planning
B) Financing
C) Accounting
D) Directing
E) Controlling
F) Management
G) Organizing
Answer: Planning.
Explanation:
The management meeting Jack was a part of, where they looked at future challenges and opportunities they could encounter is a management function of Planning. Planning in management involves a company determining their future actions, to ensure they meet their objectives.
Final answer:
Jack's participation in the meeting for forecasting trends and identifying challenges and opportunities falls under the A) planning function of management.
Explanation:
Jack's participation in a meeting that looked at future trends in the toy industry, which involved identifying new challenges and opportunities for Tiny Tots Toy Company, is part of the planning function of management. Planning involves setting objectives and determining a course of action for achieving those objectives. In this context, the meeting serves as a strategic planning session to guide the company's future direction and respond to market changes.
Thus, one managerial function of planning is the management meeting that Jack attended, whereby they discussed potential future difficulties and opportunities. In management, planning entails deciding on a company's future course of action to guarantee that its goals are met.
You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing.Which of the following are included in the true cost of going skiing? Check all that apply.
a.The rental of any ski equipment you need
b.The cost of a lift ticket
c.The cost of your ski jacket you purchased last year
d,The wages you forgo by going skiing
Answer:
a.The rental of any ski equipment you need.
b.The cost of a lift ticket.
d. The wages you forgo by going skiing.
Explanation:
The true cost in this case can also be called the opportunity cost of going skiing and it is defined as the total cost required in order to achieve the aim of going skiing.
The rental of any ski equipment you need, the cost of a lift ticket and the wages you forgo by going skiing are all included in the true cost of going skiing.
Answer:
a.The rental of any ski equipment you need
b.The cost of a lift ticket
d,The wages you forgo by going skiing
Explanation:
True cost is the monetary cost of doing something. In addition it includes the cost of foregoing an alternative action.
Rental of ski equipment and cost of lift ticket are the monetary costs incurred when you go skiing with your friend.
The opportunity cost is the alternative foregone in order to go skiing, that is the wages you are not earning while you are skiing.
Opportunity cost is considered by individuals and businesses in making the best choice between alternatives.
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of _________.
Answer:
Press, Speech & Religion
Explanation:
As per The First Amendment, the Congress had been prohibited to make any such laws which restrict an individual's freedom of speech, curtail the freedom of press or those which in any form promote or curb any religion.
In the given case, Mike, an advocate, supports a certain religion and went on to publish an article in a magazine, expressing his views and insisting upon Congress to base Federal Laws as per the principles of his religion.
The First amendment guarantees Mike, the freedom of speech i.e expression, freedom to practice the religion of his choice and the freedom of press i.e the freedom to publish an article expressing his views in a magazine.
The First Amendment guarantees Mike's freedom of speech to express his religious belief. However, the 'Establishment Clause' prevents him from imposing his religion's principles as the basis of federal law. Additionally, the 'Free Exercise Clause' allows Mike to practice his religion freely.
Explanation:In the scenario described with Mike advocating for laws in accordance with his religion, the First Amendment to the U.S. Constitution guarantees Mike's freedom of speech. He is freely expressing his beliefs and opinions.
However, it is important to clarify that while the First Amendment protects Mike's right to advocate for his religion, it does not allow him to impose his religion's principles as the basis of federal law. Known as the Establishment Clause, the First Amendment stipulates that Congress cannot make a law respecting an establishment of religion. This means that the government cannot endorse or favor any particular religion over another, effectively separating church and state.
The First Amendment also upholds the Free Exercise Clause, which allows individuals to freely practice their chosen religion. This right is balanced against the needs of society ensuring no one faith dictates legal or societal norms.
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HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement?
patent T/F
Answer:
True
Explanation:
Patent -
It refers to the legal rights given in order to sell , publish , manufacture the goods and services for a specified time period , is referred to as a patent .
The company or people has the legal right to sell or publish any others work .
These patents are approved by the government .
It enables to provide the monetary value for the country , by designing and developing goods and services.
Hence , from the given scenario of the question ,
The correct term is patent .
You could instead have bought a U.S. government strip that simply promised to pay $1,000 at the end of 5 years. If the 5-year interest rate was 2.35%, how much would investors have been prepared to pay for this strip?
We calculate how much an investor would pay for a U.S. government strip promising to pay $1,000 after 5 years at a 2.35% interest rate using the present value formula, Pv=Fv/(1+r)^n. Substitution the given variables, we get Pv = $1,000 / (1+0.0235)^5. The result of this calculation is the price the investor would pay.
Explanation:The question asks how much an investor would be willing to pay for a U.S. government strip that promises to pay $1,000 after 5 years, given an interest rate of 2.35%. This is a classic problem of finding the present value, where the future value is $1,000, the interest rate is 2.35%, and the number of periods is 5 years.
To solve the problem, you would use the basic formula for calculating the present value of a future amount, which is Pv = Fv / (1 + r)^n, where:
Pv is the present value
Fv is the future value ($1,000 in this case)
r is the interest rate (2.35% per year, expressed as 0.0235)
n is the number of periods (5 years)
By substituting the given numbers into the formula, you get Pv = $1,000 / (1 + 0.0235)^5.
The answer to this calculation will tell you the price that investors would be prepared to pay for the strip in order to receive $1,000 in 5 years, assuming a 2.35% annual interest rate.
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When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk?A) Demographic
B) Technological
C) Physiological
D) Ethical
E) Political
Answer: (E) Political
Explanation:
The political risk is one of the type of risk basically faced by the corporations, investors and the government during the time political decisions making process.
Due to the political instability, regulatory and the legal constraints the political risk problem get faced in an organization.
According to the given question, due to the social unrest and also the drastic change occur in the business environment this is basically illustrating the political risk.
Therefore, Option (E) is correct answer.
The business enterprise is facing political risk.
Explanation:The business enterprise in this scenario is said to be facing political risk.
Political risk refers to the impact of political instability, unrest, or changes in government policies on a business enterprise. When there is social unrest and disorder in a country, it can lead to drastic changes in the business environment, including changes in regulations, laws, and government policies that can adversely affect the profit and other goals of the business enterprise.
For example, during times of political unrest, a government may impose new taxes or regulations that make it difficult for businesses to operate efficiently or may even seize business assets. The uncertainty and instability caused by political risk can make it challenging for businesses to plan for the future and make sound investment decisions.
Financial markets have the ultimate purpose of:________
A. All of the above
B. Assuring that the swings in the business cycle are less pronounced
C. Bringing several parties together in order to engage in buying, selling, and trading activity of financial assets
D. Assuring that governments need never resort to printing money
Answer:
Financial markets have the ultimate purpose of:
C. Bringing several parties together in order to engage in buying, selling, and trading activity of financial assets
Explanation:
A financial market is a platform that brings several parties together in order to engage in buying, selling , and trading activity of financial assets. It generally offers an opportunity to investors in financial assets to either buy or sell the assets. Some examples of financial assets include; securities, bonds, stocks, and currency.
In capitalistic economies where there is high competition, the access of financial assets play a major role in ensuring that such economies run smoothly. Financial markets make it is for companies to trade their financial assets in an easy and fast manner. It also provides more accessibility to borrowers and also give an opportunity to the lenders to earn some interest on their money.
Financial markets involve the buying and selling of various financial assets and thus there is need for transparency to ensure that the market prices are fair. The information about the prices need to be clear and appropriate to protect investors.