The answer is:
B Because idk
Answer:
A) Both the present value and future value would increase.
Explanation:
If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.
Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.
Answer:
b. All of the answers are correct.
Explanation:
Death Spiral is a situation when a company's goods or services produced are declining and fixed cost is same. The company will be exposed to a burden of fixed cost if its output is reduced.
In this question the various departments of a company are underutilized. The fixed price allocated to each department will be same hence creating a burden on a company's funds. Managers may decide to reduce the services they use to reduce the cost of their department. The internal pricing system will start recovering the sunk cost of company. Managers will also consider purchasing services internally or externally whichever is cost effective. All of the statements are correct there b is correct option.
Answer:
b. takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
Explanation:
Vertical disintegration occurs when a company takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
A common or popular example of vertical disintegration is Hollywood because it comprises of specialized business firms that are saddled with the responsibility of performing specific tasks or services such as creating movie trailers, posters, editing, sound effects, special effects, lighting, etc.
Generally, vertical disintegration help business firms or organizations to share risk associated with doing business among themselves.
Answer:
The correct answer is foreign exchange risk.
Explanation:
Currency risk is the positive or negative difference that arises from changes in the exchange rate over time. A company that carries out operations in another currency is exposed to exchange rate movements, therefore it must seek to compensate them strategically.
Whenever a company carries out a transaction in foreign currency, whether it is for the importation of inputs or products, or the export of goods, with a waiting period between collection and payment, there is a risk of loss or gain that may affect to your finances and your profitability.
As the exchange market is volatile, a company that does not anticipate changes in the exchange rate may run the risk of incurring losses that affect its financial planning and cash flows.
Therefore, it is advisable to be prudent in your purchases of raw materials or finished products and when contracting financing in other denominations.
