All categories

4 years ago

What are capital gains on an investment?

Business

1 answer:

german4 years ago

3 0

The correct answer is B. Income that investors earn from buying and selling investments

Explanation:

In economics, capital gain is defined as an income or profit derived from buying and selling an asset or investment this includes properties, land, stocks, among others. For example, if you buy a house for $450.000 but sell this at $ 600.000 the difference in price ($150.00) is considered capital gain because this is the amount of money you as the gained by buying and then selling an asset. Thus, the capital gains on an investment is "Income that investors earn from buying and selling investments."

You might be interested in

The “Beijing Consensus” approach to economic development, a model based on China’s rapid economic growth, implies a. experimenti

maksim [4K]

Answer:

a. experimenting with policies that are compatible with a state’s political structure and experience rather than with economic liberalism.

Explanation:

The Beijing Consensus reflects a new approach to development based on China's model of economic growth. It is a non-liberal, state-driven view of development, in which development is seen as a process of structural transformation of society and cannot be confused or replaced by market economic policies. Thus, the central objective of the Beijing Consensus Chinese Development Policies is to create a development policy based on the experience of the state, within that country's political conformation, in order to link economic development to social and human development.

6 0

3 years ago

The crowding-out effect works through interest rates to:  A. Increase the effectiveness of expansionary fiscal policy B. Decreas

neonofarm [45]

Answer: Option (B) is correct.

Explanation:

Suppose there is an increase in the government spending which means that it is a expansionary fiscal policy, this will also results in an increase in the government borrowings. Now, this increase in the government borrowings will increase demand for the loanable funds, as a result interest rate increases. This rise in the interest rate will lead to a reduction in investment spending.

Hence, the government spending crowding out the investment spending. Therefore, crowding out reduces the effect of expansionary fiscal policy.

5 0

4 years ago

When you call your computer manufacturer for technical support, you aren't surprised by the lilting accents of the technicians b

Natasha_Volkova [10]

<span>You will often receive a technician with a different accent at a call center because the practice called diversity. It is commonplace for all or most companies to exercise what is called equal employment opportunities. Through operating call centers in other countries, companies are not only creating a diverse environment, they are enabling people and consumers who may speak different languages to be able to communicate with technicians of different cultural backgrounds.</span>

6 0

3 years ago

A noncomissioned employee in a company, your pay rate is based on

ipn [44]

<span>if you are an employee who is not working on a commission basis, then most likely, you are working as a salary based employee. Your salary would usually be based on your going rate or your market value to the employers. Based on your caliber, the employers will decide what your salary would be. For example, if you are a fresh grad, you will start with an entry level salary while if you are a manager, you will obviously be receiving a higher salary.</span>

5 0

3 years ago

Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end

damaskus [11]

Answer:

a. Overhead Rate = 0.34

b. Direct Labour Cost = $53,820

Explanation:

Overhead Rate based on direct materials is calculated as overhead cost/direct material cost

Overhead Cost = $612,000

Direct Materials Cost = $1,800,000

Overhead Rate = $612,000/$1,800,000

Overhead Rate = 0.34

Given

Total cost of job in process = $90,000

Material Cost of job in process = $27,000

Overhead Applied = $9,180 (0.34% * $27,000)

Direct Labour Cost = Cost of job in process - Material Cost - Overhead Applied

Direct Labour Cost = $90,000 - $27,000 - $9,180

Direct Labour Cost = $53,820

8 0

3 years ago