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Gwar [14]
3 years ago
10

Which of the following actions can be an example of a signal designed to reduce the impact of asymmetric information? A. A money

-back guarantee B. Students pursue graduate training C. Students take an unpaid internship D. All of the above
Business
1 answer:
VladimirAG [237]3 years ago
5 0

Answer: Option (A) is correct.

Explanation:

From the given options, the following actions can be an example of signal designed to reduce the impact of asymmetric information: <em>Money-back guarantee.</em>

A money-back guarantee can be referred to as an essential that guarantee, if a consumer/individual is not satisfied with commodity or service, refund to the respective account will be made. Money-back guarantee reduces the impact of asymmetric information between a consumer and seller.

You might be interested in
Madrid Company has provided the following data (ignore income taxes):
Romashka [77]

Answer:

C.Retained earnings increased $33,900 during 2014.

Explanation:

Total expenses during the year=Revenue- net income

                                                   =77,500-33,900

                                                   =$43,600

Therefore, option A. is correct

Total Liabilities=Total assets-total equity

                        =217,000-123,000

                       =$94,000

Therefore, option B. is correct

The formula for calculating  Retained earnings is given as follows:

Retained earnings at year end=Opening retained earnings+net income-dividend paid.

83,000=opening retained earnings+33,900-5,700

opening retained earnings=83,000-33,900+5,700

                                           =54,800

Change in retained earnings=closing retained earnings-opening retained earnings

Change in retained earnings=83,000-54,800=28,200

Therefore, Option C. is not correct

Common stock at December 31, 2014=total equity-total retained earnings

                                                              =123,000-83,000

                                                              =$40,000

Therefore, Option D. is correct

Based on the above discussion the answer is C.Retained earnings increased $33,900 during 2014.

8 0
3 years ago
Read 2 more answers
In business buying price is very important because of
Darya [45]

Answer: The potential selling profit

MAKE ME THE BRAINLIST

8 0
3 years ago
Read 2 more answers
(Table) If Jake and Sue are the only buyers of the local pizzeria's pizza, what is the market demand for pizzas at each of the p
IrinaK [193]

Answer:

This is the table that the question is referring to:

Price       QJ         QS

5              4             2

10             3             1

15             2            0

20            1             0

Total market demand is the sum of the individual market demands. In this market, it is the sum of the market demand of Jake and Sue.

Market demand at the price of $5 is 7 pizzas.

Market demand at the price of $10 is 4 pizzas.

Market demand at the price of $15 is 2 pizzas.

Market demand at the price of $20 is 1 pizza.

8 0
3 years ago
Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and th
liq [111]

Answer:

c) 11%

Explanation:

The question is to determine the rate of return on Groupong Inc's

The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.

The rate of return in this question is calculated as follows:

Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate

The dividend for the next year = current year dividend x (1+r), where r is 3.5

= 2.78 x (1+0.035)

=2.78 x 1.035

= (2.8773/38.3) + 0.035

=0.1101 or 11%

5 0
3 years ago
A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together i
oee [108]

Answer:

11.11%

Explanation:

The computation of the return on assets is given below:

But before that following calculations need to be done

Total assets = Total debt ÷ Total debt ratio

= $657,000 ÷ 0.31

= $2,119,354.839

Total equity = Total Assets - Total Debt

= $2,119,354.839 - $657,000

= $1,462,354.839

Net profit = Total equity × Return on equity

= $1,462,354.839 × 0.161

= $235,439.129

And, finally

ROA = Net profit ÷ Total Assets

= $235,439.129 ÷ $2,119,354.839

= 11.11%

7 0
3 years ago
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