The type of mutual fund to select depends on the person's goals and attitude towards risks. Generally, mutual funds are a pool of paper assets of different people that is managed by fund managers as they buy stocks from investments in the market.
There can be three types of source of mutual fund: stocks, bonds and balanced fund. Stocks are shares of big companies, say for example, Proctor & Gamble. They sell their shares to the market that is open to all potential investors. When a fund manager buys shares, he becomes a co-owner of the company. Thus, if the profit of the company increases, you are also given with additional dividends. However, the risk is high because if the company goes bankrupt, you lose your money. Bonds are owned by government agencies that are open to the public to borrow their money to be used on projects for the country. This is low risk because the government promises to return the amount of money borrowed plus a fixed interest. Balanced fund is the median of both because fund managers source their mutual funds both on stocks and bonds.
So, if you are aggressive, then stocks are fit for you. If you are conservative, better stick with bonds because there is a guarantee. If you are a mix of both, balanced fund is your option.
<span>Characteristics of just-in-time partnerships do not include:
a.focus on core competencies.
b.removal of in-transit inventory.
c.long-term contracts.
d.large lot sizes to save on setup costs and to gain quantity discounts.
e.produce with zero defects.
The answer is B</span>
Answer:
B. Because of the changes in production levels, under variable costing the unit product cost will change each year
Explanation:
In variable costing, Product Cost is the total of variable manufacturing costs only. Whereas in Absorption costing, the Product cost is the total of both variable and fixed manufacturing overheads.
The following statements is not correct : Because of the changes in production levels, under variable costing the unit product cost will change each year.
Answer: 3. Implementing security control diversity
Explanation:
Risks of organizations varies. The control method used in combating various risks is relative to the business and the types of risks it is exposed to.
So this implementation of this security is relative to the company.
Answer:
the present value of the property taxes is 75,000
Explanation:
We can determinate the present value of all the future payment using the perpetuity formula:
150,000 x 2% = 3,000 property taxes per year as this will be paid indefinitely and the cash flow are equal; it is a perpetuity.
C/r = PV
3,000 / 0.04 = PV = 75,000
