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Rus_ich [418]
3 years ago
7

Which of the following is NOT a diversifiable risk?

Business
1 answer:
LuckyWell [14K]3 years ago
8 0

Answer:

A) the risk that oil prices rise, increasing production costs 

Explanation:

A diversifiable risk also known as unsystemic risk is risk that is specific only to a company. It can be mitigated against by diversifying a portfolio.

The risk that the CEO is killed in a plane crash , the risk of a key employee being hired away by a competitor and the risk of a product liability lawsuit are all specific to the company and are all diversifiable risks.

The risk that oil prices rise, increasing production costs is non diversificable risk.

Non diversificable risk is risk that can affect the whole industry or economy. Non diversificable risk cannot be avoided by diversifying the portfolio.

The risk that oil prices rise, increasing production costs isn't company specific, it would affect the whole industry or economy.

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Determine the adjusted basis of each of the following assets:
Andru [333]

Answer and Explanation:

The computation is shown below:

                  75%                      25%             100%

Particulars       Business Use Personal Use    Total

Initial Basis    $22,500         $7,500            $30,000

Less: Depreciation -$4,209              0                   -$4,209

Adjusted Basis      $18,291           $7,500             $25,791

b    

Particulars                     Building        Land            Land Improvements

Original Cost               $250,000       $80,000  

Remodeling cost        $8,000  

Parking lot and sidewalks                             $12,000

Depreciation                -$70,620                           -$1,000

Adjusted basis         $187,380 $80,000           $110,000

We simply classify the cost to each type of asset which is shown above

8 0
3 years ago
When Paul arrived at work in the morning, he promised his co-workers that he would buy dinner for all of them that evening. He m
patriot [66]

Answer: No, Paul has not breached a contract.

Explanation: To answer this, we must first we must define what a contract is.

A contract is an agreement between two or more people that is legally binding, and which guides or governs the actions or conducts of the parties involved.

A quality that makes a contract legally binding is that it is enforceable by law.

In the scenario given in the question above, Paul has not breached any contract because there isn't one. The promise to buy dinner has not been legally bound, therefore, it is not enforceable by law, in essence, it is not qualified to be called a contract.

8 0
3 years ago
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Over [174]

Answer:

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Explanation:

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7 0
4 years ago
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Alexxx [7]

Answer:

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5 0
3 years ago
In most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed
Jlenok [28]

Answer: disaffirm

Explanation:

most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed contract), the minor may disaffirm the contract.

It should be noted that a contract that is signed by a minor unless in some rare exceptions is normally void and therefore, the minor can disaffirm the contract.

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