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3 years ago

"A customer buys pharmaceutical and utility stocks in his portfolio. This portfolio would be best characterized as:"

Business

1 answer:

lilavasa [31]3 years ago

4 0

Answer:

Defensive Portfolio

Explanation:

Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.

Many defensive portfolio companies offer dividends with the effect of reducing capital losses.

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An individual has a comparative advantage in producing a good or service if the opportunity cost of producing the good or servic

My name is Ann [436]

Answer:

2. False

Explanation:

A person has comparative advantage in production if he produces at a lower opportunity cost when compared with other people.

For example, there are two bakers, Jean and Vincent. Vincent can produce either 5 cakes or 10 pizzas in 1 hour while Jean can produce either 8 cakes or 12 pizzas in one hour.

The opportunity cost for producing cake is:

Jean = 10/5 =2

Vincent = 12 / 8 = 1.5

Vincent has a lower opportunity cost when compared with Vincent in the production of cake, therefore, he has a comparative advantage.

I hope my answer helps you

8 0

3 years ago

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income fo

Romashka-Z-Leto [24]

Answer and Explanation:

The preparation of the operating activities section is shown below:

Particulars Amount

Cash flow from operating activities

Net income for the fiscal year $719,000

Adjustment for non-cash effects:

Depreciation and amortization $86,000

Changes in operating assets and liabilities:

Add: Decrease in accounts receivable $41,000

Less: Increase in inventories ($11,100)

Less: Increase in prepaid expenses ($10,400)

Add: Increase in salary payable $11,900

Less: Decrease in income tax payable ($17,000)

Net cash flows from operating activities $819,400

5 0

3 years ago

Brown Company paid $40 in cash dividends.

Mice21 [21]

Answer:

Debited, left and credited, right

Explanation:

The journal entry is shown below:

Dividend A/c Dr $40

To Cash A/c $40

(Being dividend is paid in cash)

As we see that cash is paid that means cash would be credited and it is shown on the right hand side of the T account whereas the dividend is debited that is shown in the left hand side of the T account

7 0

3 years ago

A Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price-net purcha

nordsb [41]

Answer:

Hence,

1. $2.5

2. 3 pounds

3. $7.5

Explanation:

1. The computation of standard direct material price per gallon is shown below:

=Price-net purchase price + freight-in + receiving and handling

= $2.20 + $0.20 +$0.10

= $2.5

Thus, the standard direct material price per gallon is $2.5

2. The computation of standard direct material quantity per gallon is shown below:

= Quantity required material + Allowance for waste and spoilage

= 2.6 +0.4

= 3 pounds

3. The computation of total standard material cost per gallon is computed below:

= Standard direct materials price per gallon × Standard direct materials quantity per gallon

= $2.5 × 3

= $7.50

Hence,

1. $2.5

2. 3 pounds

3. $7.5

8 0

3 years ago

Crunch Lite produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large

Marizza181 [45]

Answer:

Here both the sugar free cookies and chocolates manufactured by Crunch line comes under their product line.

Explanation:

A Product line for a company can be defined as a group of similar type of products , which are all marketed and sold by a company under the same brand name. Sugar free cookies and chocolates comes under the product line of crunch lite , which produces various flavors of these products and company here is trying to distinguish these products from each other for the ease of use ability for customers.

7 0

4 years ago