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3 years ago

What is an example of an inflation risk?

Business

2 answers:

lbvjy [14]3 years ago

6 0

Answer:

A person’s income may drop

Explanation:

Inflation is the continuous and widespread increase in prices over a given period of time. When inflation occurs, people's salaries must be corrected together. For example, if inflation is 5% per year, wages must increase by at least 5%, otherwise the person's purchasing power will be reduced, which means that the person's income has decreased. This is because with the same salary, the person can buy a smaller amount of inflated goods and services. For example, if with my salary I buy 10 fruits and an inflation of 10% occurs, but my salary does not increase, I will be able to buy only 9 fruits and not 10 more.

ale4655 [162]3 years ago

5 0

The price of an item can rise or fall

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GANTT refers to the Generalized Activity Network Tracking Technique which was developed to better understand how variability in

Bingel [31]

Answer:

False.

Explanation:

GANTT refers to a chart that was developed by Henry L. Gantt, who was an american engineer and a social scientist, and is thus named after him. This chart is used to describe and illustrate various scheduled activities and the duration that each activity might take to complete. There is no full form for this word "GANTT". Therefore, the statement is false.

4 0

3 years ago

Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits wh

MrRissso [65]

Answer: Increasing current profits when doing so lowers the value of the company's equity.

Explanation:

The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.

When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.

If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.

6 0

2 years ago

Michigan Mattress Company is considering the purchase of land and the construction of a new plant. The land, which would be boug

swat32

Answer:

6 years

Explanation:

The Payback period calculates how much it takes the amount invested in a project to be recovered from the cumulative cash flow.

Total amount invested = $500,000 + $100,000 = $-600,000

Cash inflow in year 2 = $100,000

Amount recovered in year 2 = $-600,000 + 100,000 = $-500,000

Cash inflow in year 3 = $100,000 × 1.1 = 110,000

Amount recovered in year 3=$-500,000 + 110,000 = $-390,000

Cash inflow in year 4= $121,000

Amount recovered in year 4 = $-390,000 + $121,000 = $-269,000

Cash inflow in year 5= $133,100

Amount recovered in year 5 = $-269,000 + $133,100 = $-135,900

Cash inflow in year 6 = $146,410

Amount recovered in year 6 = $146,410 $-135,900 = $10,510

The amount is recovered In 5.93 years

I hope my answer helps you

8 0

3 years ago

Why would a company have a physical headquarters in one state but file for incorporation in another state?.

Semmy [17]

Employees pay income taxes depending on the rates of the chartering state, therefore a firm may opt to charter in a state with lower income taxes if it has a physical headquarters in one state but files for incorporation in another.

A tax is a mandatory financial charge or other types of levy imposed by a governmental organization on a taxpayer (an individual or legal entity) in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers pay the correct amount of tax at the correct time and receive the correct tax allowances and tax reliefs. Most nations have a tax system in place to pay for public, shared social, or agreed-upon national necessities, as well as government services.

To learn more about tax, click

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5 0

9 months ago

Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Estimated manufacturing overhead

Firlakuza [10]

Answer:

$18,000

Explanation:

The computation of the amount of manufacturing overhead is shown below:

But before that first determine the overhead rate which is

= $30,000 ÷ 2,000

= $15

Now the amount of manufacturing overhead applied for Job A-101 is

= $1,200 × $15

= $18,000

Hence, the amount of applied manufacturing overhead is $18,000

5 0

3 years ago