All categories

3 years ago

How did speculative investing weaken the stability of the stock market

1 answer:

4 0

Speculative investing means that people investing don't know the real value of the investment, only speculate it. This often inflates the prizes, which means that things cost more than they're actually worth. The problem is when people start realizing this: then they all try to exhange the goods for money, a financial crisis is possible: and a financial crisis means a lack of stability.

You might be interested in

Entrepreneurial judgment Group of answer choices is necessary to make business decisions when no fixed decision rule can be used

Mila [183]

Which behavior would best describe someone who has good communication skills with customers ? a) Following up with some customers b) Talking to customers more than listening to them c) Repeating back what the customer says d) Interrupting customers frequently

4 0

3 years ago

The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical

Likurg_2 [28]

<span>the industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical review

ANSWER:
</span><span>are worth careful scrutiny by the managers of all companies because when a company's costs for one or more of the cost benchmarks are deemed "out-of-line," managers need to initiate corrective actions in the next decision round. </span>

5 0

3 years ago

On the Border Mexican restaurants all have the same terracotta and turquoise color scheme, with posters of bullfighters and maps

ruslelena [56]

Answer:

The restaurants have a unique ambience, known in legal terms as their

Trade dress

Explanation:

Trade dress protects all elements used to promote a specific service or product. Examples of trade dress include packaging and the atmosphere or décor within a place of business. The term "trade dress" comes from a 1992 court ruling and refers to the way a product is "dressed" to go to market.

3 0

3 years ago

If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket i

adelina 88 [10]

Answer:

It means movies are relatively cheaper than working hours

Explanation:

In order to estimate the relativity of the two activities, there is a need to compare the changes over ten years

1. 10 years ago, Movie ticket= $5, 10 Years later Movie ticket= $8, the 10 year difference is $3

2. 10 years ago, average hourly wage = $10, 10 years later, average hourly wage = $20, the 10 year difference is $10

First, it means for the $3 change in movie ticket cost, there was a $10 change in the average hourly wage.

Put differently, while movie ticket got a 60% increase in price 3/5 x 100=60%

Average hourly wage got 100% increase 10/10 x 100= 100%

It means that working hours got more expensive and movie tickets got cheaper

8 0

3 years ago

Depreciation Methods A delivery truck costing $22,000 is expected to have a $2,000 salvage value at the end of its useful life o

Artist 52 [7]

Answer:

a. $5,000

b. $5,500

c. $6,000

Explanation:

The computation of the depreciation expense for the second year is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($22,000 - $2,000) ÷ (4 years)

= ($20,000) ÷ (4 years)

= $5,000

In this method, the depreciation is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $22,000, so the depreciation is $11,000 after applying the 50% depreciation rate

And, in year 2, the $11,000 × 50% = $5,500

(c) Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)

= ($22,000 - $2,000) ÷ ($100,000 miles)

= ($20,000) ÷ ($100,000 miles)

= $0.2 per miles

Now for the second year, it would be

= Production units in second year × depreciation per miles

= 30,000 miles × $0.2

= $6,000

4 0

3 years ago