Answer:
C. $12,000
Explanation:
additional earnigns for active management:
800,000 x 0.02% = 16,000
<em><u>expected </u></em>active management cost:
800,000 x 0.5% = 4,000
net gain: 12,000
At most, we can spend 12,000 dollars.
Up to this point, the expense are cover by the additional return. bove this threshold the fund will incur in losses from the active management
Answer:
What was the rate of return to an investor in the fund?
10%
Explanation:
To calculate the Rate of Return it's necessary to find the variation of the Net Assets Value during the year plus the distributions of income, the result of this it's divided by the Start of Year Net Asset Value.
Rate of Return = (Var NAV + Distributions) / Start of Year NAV
Rate of Return =
($13,2 - $14,0) = -$0,80
+ Distributions = $2,2 /
Start of Year NAV = $14,0
Rate of Return = (-$0,80 + $ 2,2 ) / $14,0 = 10%
Answer: Recognition from the class of persons that patronize their product
Explanation:
Linkedln is a site that attracts professionals from different field of study who network amongst themselves, educate each other, share information and jobs for the benefit of others in the same field.
Advertisers might be interested in this group because their target audience are mostly found there. A large mass of individuals use social media now and when many of these professionals want information or persons who can take up roles in openings in their firms they come to linkedln
Answer:
c) relatively high variable costs
Explanation:
Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.
A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.
And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs
Operating leverage is calculated as
Contribution /Earnings before interest and Tax
Answer:
Explanation:
When opening a business in a monopolistically competitive market structure it is incredibly difficult to compete and find a loyal customer base to make a profit. The best way to differentiate your product would be to personalize it as much as possible for every client. Personalizing not only the product but the shopping experience for each individual client makes that client feel special and cared about. This helps convince them to purchase this product from you as opposed to a competitor. Therefore, slowly increasing your loyal customer base.
