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2 years ago

An example of event risk is: ________.

Business

1 answer:

OlgaM077 [116]2 years ago

7 0

One example of the phenomenon known as event risk is b.a corporate takeover.

<h3>What is an event risk?</h3>

An event risk is a type of investment risk that an incident or event will be so notable that it will cause widespread effects on an industry and the economy in general.

One such event is a corporate takeover that leads to a company having stronger market power and influence.

With the world being interconnected these days thanks to globalization tendencies, a corporate takeover would also affects the economies of several nations.

This is because the branches of the companies in order nations might have to make decisions that affect the unemployment rates and productive capacity of their host nation.

For instance, if Coca-Cola and Pepsi decided to merge, this could have far reaching consequences. The risk that this would negatively affect a person's investment is event risk.

In conclusion, this is event risk.

Find out more on investment risk at brainly.com/question/6838192.

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If the price elasticity of demand coefficient is 4, then:a. a price increase of 1% will reduce quantity demanded by 1/4%b. A pri

andrew11 [14]

Answer:

A price increase of 1% will reduce quantity demanded by 4%

Explanation:

If the price elasticity is 4 then, this demand is highly responsive to changes in price.

So it will decrease by more than the price increase.

we must remember that the price-elasticity is determinate like:

↓QD / ΔP = price-elasticity

if the cofficient is 4 then a 1% increase in price:

↓QD / 0.01 = 4

↓QD = 0.04

Quantity demanded will decrease by 4%

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3 years ago

Emily purchased a building to store inventory for her business. The purchase price was $895,000. Emily also paid legal fees of $

Ugo [173]

Answer:

Emily’s cost basis in the new building is $900,750.

Explanation:

Cost basis in the new building

= Purchase price of building + legal fees + Cost of interior design

= $895,000 + $450 + $5,300

= $900,750

Therefore, Emily’s cost basis in the new building is $900,750.

3 0

3 years ago

Without a strong legal systems in a market economy:

STALIN [3.7K]

Answer:

<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>

Explanation:

As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.

Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.

Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.

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3 years ago

Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo

KATRIN_1 [288]

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

3 0

3 years ago

Read 2 more answers

The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:

Reil [10]

Answer:

20Y3

Nov. 21 :

Debit Notes receivable $66,000

Credit Accounts receivable $66,000

<em>(To recognize notes receivable iro past due account)</em>

Dec. 31:

Debit Interest revenue $161.33

Credit Interest receivable $161.33

<em>(To record accrued interest on notes receivable)</em>

Jan. 20:

Debit Cash $66,880

Credit Notes receivable $66,000

Credit Interest receivable $880

<em>(To record payment of note and interest on Nov. 21 notes)</em>

Explanation:

Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest revenue on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $66,000 x 8%/12 x 2 months = $880.

Total interest expense to the Company as at December 31 is therefore $880 / 60 days x 11 days = $161.33.

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3 years ago