A mutual fund position that is owned by the individual should be contributed to bring back the position of the advisory firm.
Answer: Option D
<u>Explanation:</u>
Net worth is the value of the firm of all the financial and the non financial assets which the firm owns. The outstanding liabilities of the firm are deducted from the net worth.
Mutual funds have the flexibility where they can manage the cash positions according to themselves. They can be followed by the market speculators and can be used to know the net worth in the market.
Answer:
The correct answer is letter "A": Only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
Explanation:
Porter's Five Forces is a study scheme named after Harvard Professor Michael E. Porter (born 1947). It helps managers assess competition within the industry.
- <em>The first force analyzes the ease of marketplace entry for new participants.
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- <em>The second factor measures the number and operation of a company's rivals.
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- <em>The third element is the likelihood of a new good or service entering the market that will diminish the sales of existing goods.
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- <em>The four-factor is that industry suppliers have negotiating power.
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- <em>The fifth factor is the bargaining power of customers.
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<em>When the suppliers' bargaining power is higher, there are possibly a few of them in the market. The situation gets worse for manufacturers when switching from one supplier to another represents higher costs or when making the change to substitutes carries a high cost as well.</em>
As an investment vehicle, and regarding the tax consequences, real estate investment trusts (REITs) are organized as REITs.
As the name suggests, REITs are organized as trusts. The assets held in the trust and the distributions made can affect the tax consequences of the trust. As an investment vehicle, shares are sold to investors and these shares may trade on stock exchanges.
Real estate investment trusts (REITs) are securities that own and, in most cases, manage income-generating real estate or related assets that trade like stocks on major stock exchanges. Many REITs are registered with the SEC and listed on exchanges.
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Answer:
- The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
- The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.
Explanation:
An operating lease is basically renting an asset from a lessor where the lessee will pay a certain amount every period for the use of the asset.
This rent payment is equal to the interest expense plus amortization expense and will be reported in the income statement of the lessee as an expense.
This amount will also be reported on a straight-line basis for the duration of the lease term which means that even if rent increases, it will still have to be reported by the same amount over the lease period because the lease increase should have been taken into account already.
The lessor also reports lease revenue on a straight-line basis over the lease term.
