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sveta [45]
3 years ago
11

If financial markets were ____, all information about any securities for sale in primary and secondary markets would be continuo

usly and freely available to investors. a. imperfect b. perfect c. inefficient d. efficient
Business
1 answer:
Finger [1]3 years ago
7 0

Answer:

The correct answer is option b.

Explanation:

Financial markets are those markets which trade in financial securities. These markets can be either perfect or imperfect.

Perfect capital has the following features:

  1. Low trading cost and free access to the market.  
  2. A large number is of traders such that no single trader can affect market price.  
  3. The information on borrowing and lending opportunities in the primary and secondary market is freely available.  

The market which do not possess these characteristics are considered imperfect.

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Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
Elza [17]

The answer is marginal revenue (MR) curve above $22.

Explanation:

Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.

Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.

Economic profit = account profit = Opportunity profit

Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.

3 0
3 years ago
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable
Evgen [1.6K]

Answer:

Explanation:

Given that :

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000.

Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation, and

In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.

The objective is to prepare a memo for the tax research file describing the tax consequences of the stock sale.

From the tax research file:

The gain on the sale of the 2,000 shares is calculated by the difference from the sales price and the shares sold.

I.e $24000 - $18000 = $6000

The tax rate on the $2000 = Purchase price of the shares/ (Original shares bought + new shares)

The tax rate on the 2000 shares = $24000/($10000+$2000)

The tax rate on the 2000 shares=  $24000/$12000

The tax rate on the 2000 shares=  $2 / shares

The Gain in the share = selling price - tax basis in the 2,000 new shares

The Gain in the share =  $18000 - $4000

The Gain in the share = $14000

∴

This is the long capital gain i.e  $14000

The memo in summary goes thus:

The amount of $24000 is being paid by you for 10000 shares of stock in Grebe Corporation in which a stock dividend of 2000 was received. However, the share is sold for $18000, the tax basis is deduced by dividing $24000 purchasing price by $12000(original price + new shares price) which resulted into a $2/ shares.  The $14,000 gain on the sale is a long-term capital gain. The gain on the sale is long term because the original Grebe stock has been held for more than one year.

5 0
3 years ago
Many store brands use packaging and labeling that is similar to the more expensive national brand. The hope is that the look-ali
olga nikolaevna [1]

Answer:

Stimulus generalization

Explanation:

Stimulus generalization defines that it is the process of call up for a reason by giving responses. For example we call dog by using the bell so that dog can come for food.

Therefore according to the given situation, Many store brands use similar packaging and labeling to the more expensive big company. The idea is that in customers, the look-alike kit would evoke a similar reaction that allows them to buy the affordable store brand so this is an example of Stimulus generalization

6 0
3 years ago
After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased shar
Crank

Answer:

The correct answer is letter "D": Price will increase, and quantity will increase.

Explanation:

If a natural disaster cuts the supply for water in a region, bottled water will face an <em>increase in its quantity demanded</em> as a substitute. Besides, due to scarcity, the bottled water is likely to face an increase in its price, thus, the <em>equilibrium price of bottled water increases</em>.

6 0
3 years ago
Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s
solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

7 0
3 years ago
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