The correct option is Option A - using credit to pay for purchases.
The risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.
<h3>What is a risk?</h3>
Risk can be defined as a possibility or a situation which is uncertain and involves exposure to danger. A risk from an investment perspective is the possibility of incurring losses due to market uncertainties.
When a company hire new employee, the company would expend some cost towards training of the newly recruited employee; which is termed financial risk.
Hence, the risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.
Learn more about risk here : brainly.com/question/1224221
Answer:
$0 stock basis; $10,000 debt basis
$1,000 (original stock basis) + $4,000 ordinary income − $7,000 distribution = $0 stock basis and a $2,000 distribution in excess of stock basis generating $2,000 of capital gain. Debt basis is not reduced by distributions.
Explanation:
Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. The total amount of direct labor cost is much more than wages paid.
Given that 3 workers, working 8 hours in a day are paid $12. The total amount paid to workers are:
12x8x3=$288
The cost of direct labor will therefore be:
450-288
=$192
Answer:
6.875%
Explanation:
In order to compute the real return, first, we have to determine the after-tax return which is shown below:
After-tax return = Pre-tax return - tax rate of Pre-tax return
= 14.5% - 25% × 14.5%
= 14.5% - 3.625%
= 10.875%
And, the inflation rate is 4%
So, the real return would be
= 10.875% - 4%
= 6.875%
