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
andrey2020 [161]
3 years ago
7

List and explain five different asset classes. What are some reasons individuals would invest in these types of asset classes?

Business
1 answer:
hodyreva [135]3 years ago
4 0

Five different assets classes are:

1.    Shares

A company’s capital is divided into shares. Each share forms a unit of ownership in a company. Shares can be classified as equity shares or preferences shares.

2.    Bonds

A contract where a person borrows money, from a company or government for a period of time in return of interest payments. There are two types of bond coupon bonds and zero coupon bonds

3.    Property

A person, government or a company acquiring a piece of land. Whether it be commercial or residential possession.

4.    Commodities

Are a part of our everyday lives, Traditional commodities are raw materials that are further processed. Commodities like, cotton in form of shirts whilst we eat oats and cereal in breakfast are also commodities. You can invest directly in commodities or trade them.

5.    Cash

Includes currency coins, hard cash, and the amount of cash deposited in the banks either in current account or savings account.


Individuals would invest in equity and bonds is because they want to enhance their returns and to smooth out any volatility in their portfolio. Investment in property, can be done to increase their return on investment over a period of time


You might be interested in
Need help!
Romashka [77]

Answer:

1. Journal entries are quicker and more comfortable in the manual accounting

2. Posting is easier in computer software-based accounting

3. Trial balance adjustment in manual accounting is tricky. However, a lengthy process may pose a challenge for computerized accounting.

4. Financial statements are more straightforward in software-based accounting than manual accounting

Explanation:

The introduction of accounting software such as QuickBooks has transformed the working for accounting professionals. The conventional accounting system replacement has made the job more comfortable. However, there are new challenges added, such as learning the software, making error-free inputs, and pace of computer-related entries. However, considering that once these skills are learned, the overall job is easier than before.

1. Journal entries in manual are made quicker, and errors can be rectified. However, entries are linked automatically to their respective ledgers that solve the challenges with compound entries

2. Posting is simpler in software as the general ledger is created on a single click. Manual posting requires time and efforts

3. Adjusted entries need to manual input in conventional method to create the adjusted trial balance whereas, in software, its added through adjusting journal entries.

4. Financial statements are much more straightforward in software as they are available on one click, whereas in manual accounting, they are required to be calculated.

4 0
3 years ago
According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of? A.APY B.Interest calcu
Lesechka [4]
According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of?

Answer: Out of all the options presented above the one that represents what banks are not obligated to inform you of is answer choice B) Interest calculating method. The reason being that the TILA does not tell financial institutions how much interest they may charge or whether they must grant a consumer a loan.

I hope it helps, Regards.
8 0
3 years ago
Read 2 more answers
Bill explains that men and women approach many tasks in different ways. He explains that while their approaches are different, m
yulyashka [42]

Answer:

C. respect

Explanation:

because he is respectful i met him

8 0
3 years ago
Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on indust
Alex73 [517]

Answer:

B. Negative, Negligible

Explanation:

Interest Rate is negatively related to Investment. Higher Interest Rate increases cost of investment, lower interest rate reduces cost of investment.

However, Investment in a particular sector/ industry is also defined by: Concentration of that sector in entire investment outlay & Income Elasticity of the sector's commodity demand. Implicatively, a sector with huge concentration of investment outlay & products with high income elasticity will have more Interest rate sensitive Investment and vice versa.

Construction Industry being very capital intensive has higher investment magnitude & also more Income Elastic demand. So, impact of higher interest rate will impact this industry more.

Necessity goods Industries are less capital intensive , investment concentrated & also have less Income Elastic Demand. So, impact of higher interest rate will impact this industry less.

<em>(Demand's Income Elasticity is the responsiveness of a good's demand to change in Income. It is more in luxurious goods, less in necessity goods)</em>

7 0
3 years ago
Kendra works as an independent representative for a jewelry company. She holds "parties" in peoples' homes where she can display
katrin2010 [14]

Answer:

The form of retailing that this represents is non-store retailing,  specifically direct selling.

Explanation:

The types of retailing are: store retailing and non-store retailing. Non-store retailing is when the sells occur outside of the store and it has different types. In this case, it is direct selling because it refers to sells where the sales person works on its own and makes demonstrations and Kendra holds parties in peoples' homes to display and talk about the jewelry she sells.

3 0
3 years ago
Other questions:
  • Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciati
    7·1 answer
  • Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 290,000 shares of stock outst
    9·1 answer
  • Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract metho
    7·1 answer
  • Assume that supply increases and demand decreases. what will most likely happen to quantity and price?
    11·1 answer
  • Casey nelson is a divisional manager for pigeon company. his annual pay raises are largely determined by his division's return o
    12·2 answers
  • Describe positive and negative outcomes that can result from societal, political, and cultural differences when managing a corpo
    10·1 answer
  • Managers taking a contingency approach to organizational design should consider which three things in determining the optimal st
    5·2 answers
  • All of the following are true except:___________
    7·1 answer
  • Individuals without health insurance have to pay more for comparable services because they do not have the advantage of sharing
    13·1 answer
  • Briyana has $150, and she needs to save at least $560 for a spring break trip. if she can save $45 per week, how long will it ta
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!