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aksik [14]
3 years ago
13

"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous

ands dollars. For example, an answer of $200 thousands should be entered as 200,000."
Business
1 answer:
kykrilka [37]3 years ago
6 0

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

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When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years 1 only.

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Normal expenses incorporate installments to providers, worker compensation, manufacturing plant leases, and hardware devaluation.

Organizations are permitted to discount charge deductible costs on their annual government forms to bring down their available pay and hence their assessment obligation.

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4 0
1 year ago
Explain what "stakeholder theory" means and identify specific ways in which pressure from stakeholders other than shareholders h
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Answer:The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance

Explanation:

Stakeholders theory is the theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities such as employees, local market, creditors, supplies and others. The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance

5 0
3 years ago
If firms in a perfectly competitive market are incurring economic losses, then as time passes firms ________ and the market ____
Liula [17]

When companies in a competitive market are incurring a monetary loss, a number of the firms will go out of the market. As those corporations go out, the delivery decreases.

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The four popular forms of market systems consist of ideal opposition, oligopoly market, monopoly market, and monopolistic opposition.

A competitive market creates opposition amongst customers. which means one patron competes with another for an amazing or carrier, specifically for dwindled stock. for example, when it comes to buying tickets to a wearing event or music concert, customers often compete to buy high-quality seats.

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6 0
2 years ago
Jove is a chocolate manufacturing company in Harrington City. While most of its competitors produce not more than three basic va
Lunna [17]

Answer:

<em>c. Sustainable Competitive Advantage</em>

Explanation:

<em>Sustainable competitive advantages</em> are business assets,  characteristics, or capabilities that are hard to replicate or achieve ;  and provide a long-term superiority or favorable role over competitors.

Types of Sustainable Competitive Advantage include:

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6 0
3 years ago
JLK is a partnership that was formed two years ago and has been extremely successful thus far. The owners have decided to incorp
anastassius [24]

Answer:

The answer is. initial Public Offering (IPO)

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If a firm(like JLK) wants to trade its shares to the public for the first term, it will do so in a process known as Initial Public Offering (IPO).

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7 0
4 years ago
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