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katen-ka-za [31]
3 years ago
14

A client who believes that current economic events will make market conditions more stable over the upcoming 30 days could profi

t by:
Business
1 answer:
Leviafan [203]3 years ago
5 0

Answer: b. selling VIX calls

Explanation:

The client could make some money selling VIX calls. Call options give the holder the right to buy an underlying asset at a set price in future and they will do so if the market price of the underlying asset increases past the call price of the asset (exercise price).

If the client expects that market conditions will be stable then an increase in stock price is not expected. They can sell calls and make money from the premium they will charge for the calls knowing that they would not have to sell any stock to the holder as the value will not appreciate.

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The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifi
Sonbull [250]

Answer:

Here the department manager has to alter his functional level plan in order to accommodate to the earlier release date.

Explanation:

A functional plan is very necessary in order to maintain the smooth functioning of each and every department and to make sure these departments achieve maximum performance. These plans are built specifically for certain activities within the company ( as here it would be build for the release of new SUV model ) . This plan will demonstrate when , how, and where a organizations objective will be met for each department.

5 0
2 years ago
Undertaker enterprises earns $0.17 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. the firm pays o
Kobotan [32]
<span>The internal growth rate is retained earning( $0.17n) divided by Total Assets($.067n). Note that their will be a 20% cut from the equation $.17n so make sure to take out 20% from that value before dividing by Total Assets. The final equations are .017n x .017n(.2) = Earnings to Stakeholders or E .017n - E = Retained Earnings or R R/.067n = Internal Growth Rate</span>
6 0
3 years ago
During 2012, Robby's Camera Shop had sales revenue of $170,000, of which $75,000 was on credit. At the start of 2012, Accounts R
klio [65]

Answer:

1) December 31, 2012, bad debt write off

Dr Bad debt expense 1,700

    Cr Accounts receivable 1,700

December 31, 2012

Dr Bad debt expense 1,125

    Cr Allowance for doubtful accounts 1,125

2) Bad debt expense must be recorded in the income statement and it reduces net income. Both transactions reduce net accounts receivable on the balance sheet.

3) It doesn't seem to be appropriate because just one bad account (J. Doe) was higher than 1.5%. A large % of accounts receivable is still outstanding (= $27,275 / $75,000 = 36.4%) and they should include approximately four months of credit sales. This means that unless the company issues a very long credit, a much larger percent is past due.

Explanation:

net accounts receivable January 1, 2012 = $15,100

credit sales 2012 = $75,000

collections on accounts receivable $60,000

net accounts receivable December 31 = $15,100 + $75,000 - $60,000 - $1,700 - $1,125 = $27,275

8 0
3 years ago
To minimize the invasion of privacy, _____.
astraxan [27]

Answer:

A. users should be able to review their records and correct any inaccuracies .

Explanation:

Once a transaction is noted and recorded in the software, there shall be access to the user only who had recorded the same, as this will provide for security and accuracy both.

If any third party is allowed to have the access to alter the records in the books then that can ruin the principle of maintaining privacy. Also in that case the responsibilities shall not stand to be completed as this calls for sharing responsibilities, and people will blame each other.

Thus, the user shall be alone to make any changes in the data already recorded by him.

8 0
2 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
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