Answer:
Explanation:
In the case of the stock split, no journal entry is required as it does not change the total value of the shareholder equity. It only changes the number of shares based on the stock split ratio. The total value would remain same. Moreover, no conversion is held.
All other information which is given is not relevant. Hence, ignored it
Risk is the exposure to uncertainty. An insurance policy is an exchange of a certain loss (the premium) to have another party (the insurer) absorb all or part of the negative consequence of being exposed to that uncertainty.
<span>For example, you have virtually no risk of dying in an airplane crash if you do not get in an airplane. You are not exposed, other than that a plane could fall on you. Likewise, if you jump out of an airplane without a parachute, there is no risk. You have all the exposure in the world, but it is certain that you will be killed. There may be some trivial risk that you live but it is so small that it can be ignored. </span>
<span>You need two things, uncertainty and exposure. Life insurance is a good example, you know for certain that you will die, you do not know when. The insurer covers you against premature death. Its reverse, the immediate annuity, covers you against living too long and running out of investment resources.</span>
Answer:
B. Capital Rationing
Explanation:
Capital rationing is a technique used by organizations and companies whereby restrictions are placed on the projects that the organization or company can undertake or limitations on the capital that can be invested by the organization or company. This limitations are placed because the organization or company aim is directed at choosing only the most profitable investment for capital investment decision or carrying out only the most profitable projects. It involves choosing amongst alternative investment.
Answer:
a) increased nominal GDP by $20,000, but left real GDP unchanged.
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is GDP calculated using current year prices.
Real GDP is GDP calculated using base year prices.
Nominal GDP = 1000 × $12 = $12,000
Nominal GDP increased by $12,000 but real GDP remained unchanged because the same amount of pizzas was produced both years.
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