1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kipiarov [429]
3 years ago
6

You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible loss

Business
1 answer:
pentagon [3]3 years ago
5 0

Answer:

Unlimited

Explanation:

GIven that:

You short-sell 200 shares of Tuckerton Trading Co

now selling for $50 per share.

If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the  more loss you're going to accumulate.

From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.

∴

The maximum possible loss = 200 × 50( 1 - infinity share price)

= Unlimited loss

You might be interested in
The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n
fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0
2 years ago
Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the
arsen [322]

Answer:

2nd January

Dr Machinery              $178,000

  Cr Cash                    $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery              $4,000

  Cr Cash                    $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).  

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.  

6 0
3 years ago
A relational orientation is based on the philosophy that buyers and sellers develop Group of answer choices a complete understan
bixtya [17]

Answer:

a long term partnership

Explanation:

A relational orientation is a concept of marketing which is aimed at creating a relationship between the salesperson and the customer on a long term basis.

The concept identifies that when a long term relationship is created with the customer, it will bring about customer loyalty. A customer that is loyal will mostly buy or purchase goods or product from the salesperson.

Example of relational orientation is purchasing a car from a seller by the buyer due to the long term relationship already established. This type of arrangement is essentially good for products purchased in large quantities.

7 0
3 years ago
How does a price floor set above the equilibrium price affect quantity demanded and quantity supplied?
irakobra [83]

When the price floor is set above the equilibrium price, the quantity supplied exceeds the quantity demanded, creating an oversupply or surplus. When government laws regulate prices instead of letting market forces set prices, this is the equilibrium price affect quantity demanded and quantity supplied.

If demand does not change, there is an inverse relationship between supply and price of goods and services. When the supply of goods and services increases at the same demand, prices tend to fall resulting in lower equilibrium prices and higher equilibrium quantities of goods and services.

Setting the price cap below the equilibrium price causes demand to exceed supply, resulting in overdemand or shortage. A floor price prevents the price from falling below a certain level.

Learn more about equilibrium at

brainly.com/question/517289

#SPJ4

5 0
1 year ago
The demand curve faced by a pure monopoly isa. vertical.b. horizontal.c. upward sloping.d. downward sloping.
svlad2 [7]

Answer:

Downward sloping

Explanation:

In a market condition of pure monopoly, there is a single firm operating the whole market and managing all the buyers. All the buyers in this market condition are price takers because the price is set by the monopolist.

The pure monopolist faces the downward sloping demand curve which shows the inverse relationship between the price of the good and the quantity demanded and they can obtain the economic profits in the long run because of the restrictions over the entry of the other firms.

3 0
3 years ago
Other questions:
  • Government programs that compensate farmers for not planting crops on all their land : hurt farmers by lowering their total reve
    13·1 answer
  • El tapitio purchased restaurant furniture on september 1, 2018, for $45,000. residual value at the end of an estimated 10-year s
    9·1 answer
  • Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock ou
    14·1 answer
  • How are profits and losses calculated? What is the difference between economic profit and accounting profit?
    13·1 answer
  • Jim is the daytime supervisor for an automobile assembly line. He supervises 45 people who perform relatively routine jobs that
    9·1 answer
  • Dunstreet's department store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out.
    7·2 answers
  • Suppose that Jeremiah was unfairly terminated before his employment contract expired, and he had to spend $500 to find another j
    5·1 answer
  • I'll give brainliest!!! Which descriptions offer examples of Governance workers? Check all that apply.
    11·2 answers
  • Which descriptions offer examples of Management workers? Check all that apply.
    14·2 answers
  • Employee factors observed that may warrant further reporting and review by managers and other institutional officials include?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!