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
tiny-mole [99]
3 years ago
10

Why is a high quality bond typically considered a lower risk investment than a stock

Business
1 answer:
vladimir2022 [97]3 years ago
3 0
The answer is in each term's definition. bonds are less risky no matter what the quality. Stocks may earn bigger profits, but more of a gamble.
You might be interested in
Which term best completes the outline?
Strike441 [17]

Answer:

C. Market.

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.

Basically, there are four (4) main types of economy and these are;

I. Mixed economy.

II. Command economy.

III. Traditional economy.

IV. Free market economy.

A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.

The four (4) main elements or characteristics of a free enterprise system includes the following;

a. Profit: businesses are all out to generate revenue and profit through the sales of finished goods.

b. Economic freedom: means of production of goods and services are controlled by the people rather than the government. Thus, the producers are free to make their economic choices or decisions such as deciding on how much is to be charged on a product.

c. Private ownership of properties: the various factors of production are owned and allocated by the people. Thus, citizens have rights to the ownership and use of private property.

d. Competition: there are many buyers and sellers of homogeneous products, as well as free entry and exit in the market. Thus, consumers are free to make their economic choices or decisions such as deciding on which product to buy, which goods interest them, where to shop for goods, etc.

In conclusion, a market is characterized by the following economy;

I. Economic freedom

II. Competition between businesses

III. Decisions motivated by profit

5 0
3 years ago
Concord Corporation had the following transactions during 2022: 1. Issued $190000 of par value common stock for cash. 2. Recorde
sergejj [24]

Answer:

The net cash provided by financing activities -$157,600.

Explanation:

Net cash provided by financing activities refers to the difference between the total cash inflows and total cash outflows from the financing activities section of the cash flow staement.

The net cash provided by financing activities can be calculated by preparing a partial cash flow statement as follows:

Concord Corporation

Net Cash Flow Statement (Partial)

As at December 31, 2022

<u>Details                                                                     Amount    </u>

Par value common stock issued for cash             190,000

Dividend declared and paid in cash                      (15,200)

6-year note payable repaid                                <u>  (334,400)  </u>

Net cash provided by financing activities      <u>   (157,600)   </u>

Therefore, the net cash provided by financing activities -$157,600.

Alternatively, the net cash provided by financing activities can be calculated as follows:

Net cash provided by financing activities = Par value common stock issued for cash - Dividend declared and paid in cash - 6-year note payable repaid = $190,000 - $15,200 - $334,400 = -$157,600

7 0
2 years ago
The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond
True [87]

Answer and Explanation:

The computation of each part is to be shown in the attachment. The one statement is of final values and the other one is of formula sheet.

This one applied for all the things which need to be find out

Kindly find the attachment below:

We use the RATE formula for determining the rate of return and the same is to be considered

6 0
2 years ago
A tenant still has five months remaining on a one-year apartment lease. When the tenant moves to another city, the tenant transf
Leno4ka [110]

Answer:

It would be B a sublessor

8 0
2 years ago
If the price elasticity of demand for apples is 1.20 (absolute value), then the demand is _____ and total revenue will ______ if
Ludmilka [50]

Answer:

The correct answer is: price elastic; increase.

Explanation:

The price elasticity of demand for apples is 1.2.  

This implies that the demand relatively prices elastic.  

Elastic demand means that a proportionate change in the price of apples will cause more than proportionate change in the quantity demanded.  

A decrease in the price of apples will cause its quantity demanded to increase by more than proportionate. This will cause total revenue to increase.

3 0
3 years ago
Other questions:
  • A debit card is also know a(n)________
    15·1 answer
  • Ben seems to have the Midas touch. He can recognize opportunity where others see only problems. His focus is on creating solutio
    10·1 answer
  • In a planning context, A. open facts are preferred to closed facts. B. None of the choices are correct. C. new facts are preferr
    6·1 answer
  • Suppose that there is a flat 20% income tax rate, but otherwise the US tax law is the same as that in place. You make $40,000 pe
    14·1 answer
  • Sandhill Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Sandhill expects to operate the depot
    13·1 answer
  • The GoT cups are a fast seller and you need to ensure that you have enough rolls of paper to fulfill demand. The first stage in
    5·2 answers
  • Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of cr
    9·1 answer
  • . What type of company would you like to create? Why would you like to create this type of company?
    11·1 answer
  • Costs and benefits that should be ignored when making decisions are called ______ costs and benefits.
    7·1 answer
  • Sometimes brand names become synonymous with a product itself. if that happens, the brand.
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!