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
WITCHER [35]
3 years ago
14

What are two motivations to sell an asset, even if the current value is less than what you paid for it?

Business
1 answer:
SOVA2 [1]3 years ago
6 0

Answer:

two motivations to sell an asset, even if the current value is less than what you paid for it, are:

1. You want to buy new assets that are performing well currently.  

2. You want to diversify the types of assets that you own.

Explanation:

Asset management needs to implement measures in order to administrate risk. When you have an asset, whose value is less than the price you paid for it. Selling this asset becomes a logical decision when you either want to diversify your portfolio or buy a new asset that has a better performance in the market.  

Diversifying a portfolio is very important to avoid market risk. Having all your eggs in one basket is never a good investment decision because if something goes wrong with that particular investment your losses will be greater. For this reason, is always a good decision to keep different types of financial assets that help you to divide the risk among several assets.

Besides, if the current performance of a given assets is way better than an asset that is currently giving you no return in the investment because its actual price is less than the price you paid for it.    

You might be interested in
Economic systems differ from one another based on who owns the factors of production and.
Aliun [14]

Economic systems differ from one another based on who owns the factors of production and. <u>Who make decisions regarding what to produce and how it is produced</u>

<u />

<h3>What is Economic systems?</h3>

An economic system is a mechanism by which societies or governments manage and distribute public resources, services, and goods across a geographic region or nation. Economic systems control the factors of display, including land, capital, labor, and material resources.

<h3>What is represented by economic system?</h3>

An economic system is a means with the help of which the government plans and issues accessible services, resources, and things across the country. Economic systems manage aspects of production, combining wealth, labour, physical resources, and industry people.

To learn more about economic system, refer

brainly.com/question/26360576

#SPJ4

Complete Question is,

A. How much resources are available in the economy and where they are located

B. Who make decisions regarding what to produce and how it is produced

C. What kinds of products are produced in the economy and how plentiful they are

D. How big the population is, and the makeup of the population

5 0
1 year ago
Roy dies and is survived by his wife, Marge. Under Roy’s will, all of his otherwise uncommitted assets pass to Marge. Based on t
tatiyna

Answer:

Explanation:

a.) R, M and M's sister A claims equivalent tenure in timberland worth $1.2 million. Despite the fact that A completed the first price tag, military conclusion is constrained to the degree of R's offer in Timberland. So military reasoning is $0.4 million (1/3 of $1.2 million)

Therefore, R's martial deduction is $0.4 million.

b.) Living arrangement worth $900,000 is claimed by R and M as occupants by the sum with right of survivor-ship. Despite the fact that R outfitted unique buy $450,000 ($900,000/2) will be remembered for Roy's gross domain and this sum speaks to the property that is given to M for reason for martial deduction.

In this way, R's martial deduction is $450,000

c.) Insurance policy on R's life is claimed by M and payable to her as the assigned recipient. It won't be remembered for net bequest of R and arrangement measure of $1 million isn't qualified for martial deduction. This is on the grounds that, martial deduction is permitted distinctly for property that is remembered for the perished companion's gross bequest.

Therefore, R's martial deduction is $0 million

d.)Insurance policy on R's life worth $500,000 possessed by R and M as the recipient. Despite the fact that the assigned recipient for protection arrangement on R's life is M (Roy's significant other), the sum is to be remembered for R's gross domain as it is possessed by R. This sum speaks to the property that is given to M for motivations behind martial deduction

Therefore, R's martial deduction is $500 million

e.) Dissemination from qualified pension plan of $1.6 million. Whole measure of $1.6 million will be moved to R's better half and it will be qualified for martial deduction

Therefore, R's martial deduction is $1.6 million

6 0
2 years ago
Which career pathway performs the tasks of rescuing people and giving first aid, writing parking tickets, and catching stray ani
Semenov [28]
Emergency and Fire Management services
6 0
3 years ago
Read 2 more answers
What is the definition of the time/value of Money A:the relationship between time money and the rate of return and their effect
jenyasd209 [6]

Answer:

The answer is B

Explanation:

6 0
2 years ago
Watson, Inc. applies overhead cost based on direct labor hours. In completing the 200 units in job #120, the company incurred $1
andriy [413]

Answer:

Total cost= $24,000

Explanation:

Giving the following information:

Watson, Inc. applies overhead costs based on direct labor hours. In completing the 200 units in job #120, the company incurred $12,000 in direct materials and 500 direct labor hours at $18 per hour. The predetermined overhead rate is $6 per direct labor hour.

Total cost= direct material + direct labor + manufacturing overhead

Total cost= 12,000 + 500*18 + 6*500= $24,000

3 0
3 years ago
Other questions:
  • Under the Texas penal code
    14·1 answer
  • Exercise 22-18 Manufacturing cycle time and efficiency LO A4 Oakwood Company produces maple bookcases to customer order. The fol
    10·1 answer
  • An outside supplier has offered to make and sell the part to the company for $24.10 each. If this offer is accepted, the supervi
    10·1 answer
  • A bag contains 9 red marbles, 5 white marbles, and 6 blue marbles. You draw 4 marbles out at random, without replacement. Find t
    9·1 answer
  • accountant for Huckleberry... The accountant for Huckleberry Company is preparing the company's statement of cash flows for the
    9·1 answer
  • Organizations often start a new marketing research study by first examining secondary data primarily because
    9·1 answer
  • What did Apple and other publishers seek to do?
    8·1 answer
  • Features of wealth definition <br><br> 10
    10·1 answer
  • A<br> Advantages of Product Added Mothed<br> Accounting<br> in National income
    7·1 answer
  • If a balance exists in the temporary moh account at the end of the​ period, it can be ignored for purposes of preparing the​ com
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!