Answer:
Scenario 1: A risk-averse person will choose option B.
Scenario 2: A risk-averse person will choose option D.
Scenario 3: A risk-averse person will choose option F.
Explanation:
a) Data and Calculations:
Scenario 1:
Option A Winning Expected
Probability Value
50% $1,000 $500
50% 0 0
Total winning = $500
Option B Winning Expected
Probability Value
100% $500 $500
0% 0
Total winning = $500
Scenario 2:
Option C Winning Expected
Probability Value
40% $90 $36
60% 110 66
Total winning = $102
Option D Winning Expected
Probability Value
100% $90 $90
Scenario 3:
Option E Winning Expected
Probability Value
50% $0 $0
50% 100 50
Total winning = $50
Option F Winning Expected
Probability Value
50% $20 $10
50% 60 30
Total winning = $40
b) The risk-averse person tries to avoid risks at all times. Her choice of investment favors an option that has a 100% probability of winning, thereby eliminating risks in all ramifications. This is why she is never indifferent between two options as she factors in the probability of losing.
Answer:
People invest:
to increase future consumption.
Explanation:
Investments generate increased returns. These returns add value to the pool of an investor's money which can be used to increase future consumption. Investments are important because they increase productivity of value. The increased value will be future use. For example, if A invests his savings of $5,000 which yields an annual return of $1,000 (or 20%) ROI, and the investment is left for 5 years, by the end of 5 years, A will have $10,000. This implies that he has more money to spend than in the previous five years. A can now spend more $5,000 than he could have spent five years' ago.
1. The three-step writing process can be defined as:
- Pre-writing
- Drafting
- Final review
In pre-writing, the objective is to prepare for your writing, through research and information gathering. In the drafting phase you will build your text in a structured way and in the review phase you will carry out an analytical reading and make corrections if necessary.
2. Four techniques you can use to improve the readability of your messages are:
- Add headings and subheadings
- Use short words and objective sentences
- Keep paragraphs short
- Use bullets and lists
<h3 /><h3>How to write a text effectively?</h3>
It is essential to pay attention to the textual structure and its main objective, aligning ideas in a simple and objective way, so that the reader can understand the purpose of the text. It is also essential to use reliable sources in the construction of the text, generating greater reliability.
Therefore, good writing is built through research, analysis and dedication, with ideals structured around a topic.
Find out more about writing process here:
brainly.com/question/1643608
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Answer:
4.Sole Proprietorships, Partnership and Corporation
Explanation:
A sole proprietorship is probably the most popular form of business ownership. It a business owned by a single individual. A sole proprietorship is simple to establish and operate. The owner does not require to consult anyone when making decisions. A sole proprietorship enjoys single layers of taxation, although the owner has unlimited liability to the business's debts.
When two or more friends or acquaintances combine efforts to create a business, they form a partnership. The partnership business is guided by agreements contained in the partnership deed. The agreement dictates each partner's role, the formula for sharing profits and losses, among other items. The income of a partnership is treated as the partners' income for taxation purposes.
A corporation is a complex business structure. Legally, a corporation is recognized as a distinct and separate entity from its owners. A corporation is a legal person with rights to trade, enter into contracts, own properties, and incur debts. As a business, the corporation is expected to file income tax returns.
Answer:
Hence, correct option is I and III.
Explanation:
Increase in working capital is only a temporary increase; increased working capital will be recovered at the end of project duration. Hence, increase in working capital should be considered only for the purpose of time value of occurrence of working capital cash flows.