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3 years ago

Describe an example of an equity investment that can also produce income. (1-3 sentences)

1 answer:

4 0

We can take an example of an equity income<span> that can also produce income</span> is the profit paid by the organizations of which you have offers of stocks. Organizations pay yearly profits to its investors. Or another example is that you could lease or rent a house and get month to month rent from the renter.

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Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5% of the value of the painting. If the

Julli [10]

Answer:

Explanation:

It would grow by 7% each year which is the rate of return on stocks

4 0

3 years ago

Firms that are _______ recognize that including a strong social orientation in business is a sound strategy that is in the best

nirvana33 [79]

Answer:

The correct answer is E. socially responsible

Explanation:

A company is socially responsible when it works attached to values and that within its business objectives includes supporting social, economic and environmental needs in order to optimize its competitive situation and its added value.

When a company is socially responsible, it does so by its own decision and not by taxation and its policies, strategies and practices are aimed at favoring its employees, suppliers, family, environment and environment.

The green paper of the European Commission states that "corporate social responsibility is the voluntary integration, by companies, of social and environmental concerns in their business operations and their relationships with all their partners."

7 0

3 years ago

Which of the following is a correct description of the crowding-out effect of deficit spending?

borishaifa [10]

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.

5 0

3 years ago

You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 29%. The T-bill rate is 8%. Your

Anastasy [175]

Answer:

13.85% and 18.9%

Explanation:

As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:

$E(r)=r_{1}*w_{1} +r_{2}*w_{2} +....+r_{n}*w_{n}$

where E(r) is the expected return, $r_{i}$ is the return of the i asset and $w_{i}$ is the investment in i asset, so applying to this particular case we have:

$E(r)=17\%*65\%+8\%*35\%$

$E(r)=13.85\%$

the calculation of standar deviation follows the same logic of the previous formula:

$Sigma(r)=29\%*65\%+0\%*35\%$

$Sigma(r)=18.9\%$

4 0

4 years ago

Capitol Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of i

jekas [21]

Answer:

New-Task.

Explanation:

New-task purchase is that purchase made by a business of which need has not arisen before. The business didn't made decision to make purchase for this new product or purchase before. The new-task purchase decision is made by the business when a need to purchase is perceived internally or by the clients.

In the given scenario, the need to purchase 'cars as part of its sales compensation' defines the criteria of new-task purchase. In this case, Capitol's need to buy or add 'cars' into its sales compensation represents need to make 'New-task purchase.'

Therefore, the correct answer is new-task purchase.

6 0

3 years ago