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Stels [109]
3 years ago
13

We have an intuitive appreciation for those who are able to earn a profit. We can see that resources flow to those who successfu

lly coordinate inputs and serve customers. For this written assignment you are to examine the other side—the side of losses. The market system is a system of both profit and loss. Why is loss essential to the market process? What function does loss have? What role does it play? What is the downside if we used government to shield companies from incurring losses? Explain.
Business
1 answer:
mr_godi [17]3 years ago
8 0
Let's start it this way. Since a market system is a system of profit and loss, naturally, both profit or loss will play a vital role in the equation or system. Capitalist economies depend on markets when it comes to their economic activities. The market's role is to serve as a basis for them in determining what profitable activities and enterprises should the people invest on.Without the presence of loss in the equation of a market system, these people will not be able to determine where they should invest and/or withdraw from. Therefore, people base their decision of using their resources through knowing first the profit and loss. The loss will help them go away from companies or activities which will bring the losses.The downside for using the government in shielding companies from having losses is that the government will be abused by these companies. Since all companies will naturally want to not experience having losses. 
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Vesting refers to the right of the holder of an insurance policy to collect for an insurable event. the shielding of returns on
Feliz [49]

Answer:

the length of service required of an employee before he or she is eligible for a pension.

Explanation:

In business, vesting represents the process by which an employee starts to collect the money his employer (and himself) contributed to a pension plan or similar benefit plan.

The vesting date is the date when the employee starts to receive the benefits from a pension plan or similar benefit plan.

6 0
3 years ago
Assuming the issuer does not default, can capital gains or losses be a component of the holding period return on a zero-coupon b
tamaranim1 [39]

Yes, because the bond's yield to maturity may have changed.

Do zero coupon bonds have a yield?

Without accounting for any interest payments, zero-coupon bonds always demonstrate yields to maturity adequate to their normal rates of return. The yield to maturity for zero-coupon bonds is additionally known as the spot rate.

What is the difference between a zero-coupon bond and a coupon bond?

Regular bonds, which also are called coupon bonds, pay interest over the lifetime of the bond and also repay the principal at maturity. A zero-coupon bond doesn't pay interest but instead trades at a deep discount, giving the investor a profit at maturity once they redeem the bond for its full face value.

Advantages Of Zero-Coupon Bond:

The Zero Coupon bonds eliminate the reinvestment risk. Zero-Coupon bonds don't let any periodic coupon payments, and hence a hard and fast interest on Zero Coupon bonds is guaranteed.

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3 0
2 years ago
How do economists think private ownership most affects property maintenance??
kaheart [24]
The economists think about the pros and cons of the relation between the private ownership and the property maintenance. The property maintenance level depends on the level of the property owner responsibility which can affect the value of the property itself. There is a benefit to the private ownership if the private owner is a responsible one. A loss will occur if the private owner is not responsible.
8 0
4 years ago
The bad feelings associated with disappointing news can generally be reduced if the receiver knows the reasons for the rejection
Pavel [41]

Answer:

T

Explanation:

3 0
4 years ago
Scott+stratton+recently+purchased+a+car+for+$22,500.+it+will+depreciate+at+a+rate+of+7%+per+year.+what+will+his+car+be+worth+in+
ICE Princess25 [194]

The cost of the car after 5 years from then, will be $15652.99.

Given here, the depreciation every year(r) 7%  or 0.07per year, asset cost (of the car) is $22,500 and time period (n) is 5 years.

The value after 5 years can be calculated as,

Depreciated value = asset cost ×(1-r) n

= 22500 × (1-0.07) 5

= 15652.99$.

Thus, the car worths 15652.99$ after 5 years.

The worth of an asset after its useful life is expired, as it is diminished over time by depreciation, is its depreciated cost. The asset’s worth is continuously diminished by figuring out how much it will cost to depreciate it, but the depreciated cost technique always permits accounting records to represent an item at its current value.

Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life.

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3 0
2 years ago
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