Answer:
The answer is option A) Diversification merits strong consideration whenever a single-business Is faced with diminishing market opportunities and stagnating sales in its principal business company
Explanation:
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.
It's important to diversify among different asset classes. Different assets such as bonds and stocks will not react in the same way to adverse events. A combination of asset classes will reduce your portfolio's sensitivity to market swings. Generally, bond and equity markets move in opposite directions, so if your portfolio is diversified across both areas, unpleasant movements in one will be offset by positive results in another.
Answer:
$2,205
Explanation:
The amount available after two years can be calculated using the formula
A= P x ( 1 + r) ^n
where A = amount
P= principal: $2000
r = interest rate : 5%, or 0.05
n = number of compound periods: 2
A= $2000 x ( 1 + 0.05)^2
A= $2000 x1.1025
A= $2,205
Principal amount after two years = $2,205
A credit union usually has membership requirements
Sue would be BENCH MARKING.
Bench marking is the process of comparing one's business processes and performance metrics to industry best and best practices from other companies. Bench marking is usually done in order to achieve a competitive advantage in an industry.<span />
Answer:
This lease is regarded and classified as Capital lease.
Explanation:
This lease is regarded and classified as Capital lease.
Here, Callaway Golf Co. is the body financing the leased asset but the right ownership is with Photon Company.
Now; the present value of future payment is calculated as:
Present value of future payment =[PVA 6%,5 × Annual payment ]+[PVF 6%,5 × Residual value]
=[4.46511 × 31000] +[0.74726 × 15500]
= 138418.27+ 11582.53
= 150000
However the present value of minimum lease payment is equal or more than 90% fair market value ,as such we therefore conclude that this lease is a capital lease.
