Solution :
The risk averse is the person who wishes to reduce the uncertainty attached to the money.
Certain income = $2000.
50-50 chance of 1000 and 3000 would income expected income of
(0.5 x 1000) +(0.5 x 3000) = 2000
Both of them gives an equal amount of income while there is uncertainty attached with the second case which makes the risk averse person disincline to follow.
Hence the statement is FALSE.
Assume that the population level in a country is X. 5 percent of the population are likely to get affected by the disease due to which it makes a population of 0.05 X population to be effected by the disease. The population level will cost $38,000, hence making the total healthcare cost to be 1900 X.
Answer:
total revenue = is 99300
Explanation:
given data
expects to sell in October = 3,000 units
expects sales to increase = 10%
Sales price stay constant = $10 per unit
solution
we get revenue hereby the sum of revenue of oct + nov + dec
revenue = price × quantity .........................1
total revenue = is 99300
Actual means the real selling price for the product paid by the customer whereas proposed selling price is the price which was suggested to be set for the product.
Answer:
1. an amount after continuing operations.
Explanation:
In preparing the income statement the transactions resulting into gain or loss from the discontinued operations are always reported in income statement.
For this there is special heading that is
Amount after continuing operations
This basically reflects the gain or loss from the sale of such segment.
This provides for reporting all the transactions as part of business but in an highlighted manner.
The contract must be very detailed and should include all the contingencies spelled out in it.
<u>Explanation:</u>
Contract is a document that is made between two or more than two parties who have come in to an agreement with each other over a particular thing. The contract might be a business contract that the parties make which should have the proportion of profit and liabilities of the business that is to be shared among the partners.
Since the profit and losses are to be shared between the business partners on the basis of this contract, the contract should have very detailed information in it and all the contingencies should be spelled out in it.
