Answer:
a. True
Explanation:
Since small business has lesser processes and paper work as compare to the larger organizations where formal procedures are in placed
Answer:
A) interest rate
Explanation:
Interest rate risk refers to the risk of purchasing a bond that offers a certain coupon and then the price of that bond changes due to changes in the market interest rate.
This can work in your favor, if the market interest rate decreases, you will have a bond that pays above market coupon, which will increase the market value of the bond. But if the market interest rate increases, the market value of your bond will decrease, and you will lose money. This is what happened to Albert, since the market interest rate increased, the value of Albert's bond decreased.
<u>Solution: </u>
The following are the correct and incorrect options
<u>Correct option</u>: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.
<u>Correct option</u>: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).
<u>Other options are not correct:
</u>
<u>Incorrect option</u>: Savings means personal savings, which are not yet kept into a bank.
<u>Incorrect option</u>: such purchases are investments but not savings.
Norming is the stage when a team becomes more cohesive and clarifies members' roles and responsibilities, team goals, and team processes
Answer:
e. Project X has both a higher present value and a higher future value than Project Y.
Explanation:
The project X cash flows are higher in initial years than of project Y. The present value of project X cash flows will be greater than project Y. The time value of money of project X will be greater than Project Y.
The future value of Project X will also be higher than project Y because it has higher cash flows in earlier years. When future value will be calculated the project X will give the higher Future value than project Y.
