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Elena L [17]
4 years ago
9

Four (4) ways to harvest an investment in a business.

Business
1 answer:
Mazyrski [523]4 years ago
7 0

Answer:

Harvesting an investment in a business

Four ways to harvest:

a. Outright sale of a company or the investment

b. Issue of Initial Public Offering (IPO)

c. Gradual elimination of a product, especially after the cow stage.

d. Withdrawal of additional investment and earning of profits.

Explanation:

These strategies can be employed by a business to reap the fruits from an investment.  The purpose for the investment and the risk profile of the investor determines the actual strategy or combination of strategies used by the investor.

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Other things the same, a decrease in the price level causes real wealth to a. fall, interest rates to fall, and the dollar to ap
Law Incorporation [45]

Answer:

c. rise, interest rates to rise, and the dollar to appreciate

Explanation:

7 0
4 years ago
A construction company entered into a fixed-price contract to build an office building for $46 million. Construction costs incur
Alex777 [14]

Answer:

Check the explanation

Explanation:

Using the percentage-of-completion method <em><u>(which is an accounting method or technique in which the earnings and expenses of contracts that are of long-term basis are documented as a percentage of the completed work during a particular period.)</u></em>

Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million

Revenue to recognize = $8m/$20m*$28m = $11.2 million

Gross Profit = Revenue recognized less costs incurred

= $11.2m - $8m = $3.2 million

8 0
3 years ago
Property taxes in a particular district are 2​% of the purchase price every year. If you just purchased a ​$150,000 ​home, what
baherus [9]

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

8 0
3 years ago
by using Philips curve, If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips
Mashutka [201]

The prediction that the inflation rate will change is that there will be a right-ward shift of the curve to indicate that inflation is on the increase. Recall that unemployment is depicted on the x -axis, and inflation on the y-axis.

<h3>What is a Phillips curve?</h3>

The Philips curve shows an inverse relationship between unemployment and inflation.

<h3>What will happen if the unemployment rate now rises to 7 percent per year? </h3>

Because the relationship between inflation and unemployment is inverse (that is, all things being equal), if the unemployment rate now rises to 7 percent per year, the inflation rate is sure to fall.

Learn more about Phillips curve at;
brainly.com/question/4486587
#SPJ1

7 0
2 years ago
A static budget shows planned results at the original budgeted activity level. should not be prepared in a company. is useful in
stira [4]

Answer:

The answer about A static budget would be

Explanation:

A static budget is a type of budget that incorporates anticipated values ​​on inputs and products that are conceived before the period in question begins. When compared to the actual results that are received after the fact, the static budget figures are often very different from the actual results.

The static budget is intended to be fixed and unchanged throughout the period, regardless of fluctuations that may affect the results.

For example, under a static budget a company would establish an anticipated expense, say $ 30,000 for a marketing campaign, for the duration of the period. It is then up to the managers to adhere to that budget, regardless of how the cost of generating that campaign really stays during the period.

This type of budgeting is limited by the ability of an organization to accurately forecast what its needs are, how much it will spend to meet them and what its operating income will be during the period. Static budgets can be more effective for organizations that have highly predictable sales and costs, and for shorter periods of time.

For example, if a company sees the same costs in materials, profits, labor, advertising and production month after month to maintain its operations and there is no expectation of change, a static budget may be adequate for its needs.

5 0
3 years ago
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