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Mashcka [7]
4 years ago
9

A financial advisor has heard from a relative of nr industries inc.'s ceo that the company is planning to shut down its operatio

ns in europe next year. the financial advisor realizes that this decision may cause a decline in the value of the company's shares and decides to sell them off. a buyer, unaware of the company's future plans, sees this as a potential opportunity and invests in the company. what does this scenario best illustrate?
Business
1 answer:
kolezko [41]4 years ago
3 0

This would be a case of insider trading, meaning that the trader (the financial advisor) has information that is not public that will affect the future performance of the company. If the advisor acts on this early information and profits, then this could be considered illegal.

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The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of f
Contact [7]

Answer:

Fixed overhead absorption rate

= <u>Budgeted fixed overhead</u>

  Budgeted activity level

= $<u>12,000</u>

    16,000 hours

= $0.75 per hour

Production volume variance

= (Standard hours - Budgeted hours) x Fixed overhead rate

= (16,250 - 16,000) x $0.75

= $187.5(F)

The correct answer is A

Explanation:

First and foremost, we need to calculate fixed overhead absorption rate, which is the ratio of budgeted fixed overhead to budgeted hours. then, we will calculate the production volume variance, which is the difference between standard hours and budgeted hours multiplied by fixed overhead absorption rate.

7 0
3 years ago
A Bathtub model of the start of the Great Depression would show the water level becoming lower with Investment inflow being less
Aneli [31]

Answer:

LESSER THAN

Explanation:

During the Great Depression, it was a period of recession that meant that investments were low and less than savings which meant that 'household' was unwilling to invest its money as it had lost confidence in the American economy. This will lead to Aggregate Demand being Lesser than Aggregate Supply as consumption fell drastically during the great depression

4 0
3 years ago
Suppose Juan has three job offers. He can earn $50,000 in Atlanta, GA; $70,000 in Boston, MA; or $100,000 in San Francisco, CA.
Pavlova-9 [17]

Answer:

  • <u><em>To maximize the purchasing power of his income, Juand should accept the offert of Atlanta, GA.</em></u>

Explanation:

To answer this question you need the <em>comparative costs of living</em> in each of the trhee cities.

In a similar question, you can find the <em>cost of iiving indexes</em> for <em>Atlanta, Boston,</em> and <em>San Francisco</em>. Here is the table:

<em />

<em>                                           Cost of living index</em>

<em>City                                (100 = U.S. City average)</em>

<em>Atlanta, GA                                 98</em>

<em>Boston, MA                               160</em>

<em>San Francisco, CA                   245</em>

Thus, to determine which offer <em>Juan should accept to maximize the purchasing power of his income</em>, divide each income by the cost of living index.

<u>Atlanta, GA:</u>

<u />

  • $50,000/98 = $510.20

<u>Boston, MA</u>

  • $70,000/160 = $437.50

<u>San Francisco, CA</u>

  • $100,000/245 = $408.16

Rank the adjusted earnings in decreasing order:

  • $510.20 > $437.50 > $407.16

Hence, in spite of the nominal earnings in Atlanta are the lowest, the higher cost of living indexes of the other cities, make that the offer from Atlanta the best one.

5 0
4 years ago
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