All categories

4 years ago

Which of the following is not common to all investments?

Business

1 answer:

MrRa [10]4 years ago

5 0

Answer:

Option D is the correct answer

Explanation:

Investors are typically expected to part with their funds today in expectation for a future amount,hence the funds so invested are invested for speculative reasons.

Owners are given the option of future payments at redemption of the investments while some investments can be divested before maturity.

Future payments are naturally risky because investment is like two sides of a coin, it either has a positive or negative outcome such loss of the entire invested sum.

Not all investments pay positive rate of interest, the US bank deposit interest was negative during the global meltdown in 2009.

You might be interested in

One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck.

garik1379 [7]

Answer: Yield management pricing

Explanation It can be defined as the strategy in which the company studies and influence consumer behavior with the intent of maximizing profit with the limited amount of resources available.

In the given case, the truckers have limited time and they are getting extra revenue from the website. This will result in maximization of their profit.

Thus, from the above we can conclude that the right answer is option E.

5 0

4 years ago

McDonald's is an example of a ________ franchise. a. conversion formsb. trade namec. product distributiond. pure

Sergio039 [100]

Answer:

Pure Franchise

Explanation:

A Pure franchise can be defined as the way in which franchise made available all the necessary and important document which the franchisee will need such as the complete business format , trade name licence, the types of product or goods to be sold, the marketing strategy to use as welll as the type of method of operation to follow and use among others.

In addition PURE FRANCHISE may as well include the actual amount or cost for the start upstart, franchise fees as well as their growth history.

All this procedure are what the franchisor use to sells the complete business format as well as the system of their product to the franchisee in which the franchisee must adopt as well.

Therefore McDonald's is an example of a PURE franchise.

3 0

3 years ago

Read 2 more answers

Billabong Tech uses the internal rate of return (IRR) to select projects. Calculate the IRR for each of the following projects

Umnica [9.8K]

Answer:

Project t shirt IRR = 33.69%

Project board short IRR = 37.39%

I would recommend project board short because its IRR is higher.

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

For Project T-Shirt ,

Cash flow in year 0 = -$17,333

Cash flow each year from year one to four = $8,500

IRR = 33.69%

Project Board Shorts,

Cash flow in year 0 = -$27,667

Cash flow each year from year one to five = $13,000

IRR = 37.39%

Project Board Shorts would be chosen because its IRR is higher than that of the other project.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

8 0

3 years ago

Crane Company had 790000 shares of common stock outstanding on January 1, issued 121000 shares on May 1, purchased 60000 shares

Digiron [165]

Answer:

The weighted average shares outstanding for the year is 859,000.

Explanation:

Jan.1: outstanding shares 790,000: (790,000 x 12) = 9,480,000

May.1: Issued additional 121,000 shares: (121,000 x 8) =968,000

Sep.1: Purchase 60,000 shares of T.S: (60,000 x 4) = (240,000)

Nov.1: Issued additional 50,000 shares: (50,000 x 2) =<u>100,000</u>

= 10,308,000

Note: We take the number of months from the transaction date to the months remaining in the year end.

Weighted Average Outstanding Shares = <u>10,308,000</u>

Weighted Average Outstanding Shares = 859,000

5 0

3 years ago

Read 2 more answers

Tyson is a 25 percent partner in the KT Partnership. On January 1, KT makes a proportionate distribution of $16,000 cash and lan

mina [271]

Answer:

No option is correct. The options include inventory, while the question does not mention any inventory distributed.

Tyson's basis on the land is $4,000.

Explanation:

Tyson's basis on the land = total distribution - cash distribution = $20,000 - $16,000 = $4,000

A partner only needs to recognize a gain on a distribution when the cash distribution is larger than the partner's basis. In this case, the partner's basis is more than the cash distribution. The partner's basis for the rest of the assets distributed will be equal to the difference between the partner's basis - cash received.

In this case, since the difference is $4,000, then the basis for the land will be reduced.

7 0

3 years ago