Answer:
liquidity in the market
Explanation:
In business, market liquidity can be regarded as the trade off that exist between the price one want to sell an asset and how it can be sold out on time. It is a feature in which a particular firm as well as individuals can sell out any asset without serious change in the price of the asset. It should be noted that Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, it is most crucial to maintain Liquidity in the market
Answer: environmental scanning
Explanation: In simple words, environmental scanning refers to the process in which an organisation tries to gather maximum information by an event and interpret its relationship with the external and internal environment of the entity.
This process in usually done by the top management for estimating future that if there will be any opportunities to grab or any threats to be concerned about.
Hence from the above we can conclude that the given case depicts environmental scanning.
Answer:
February 125 call
Explanation:
Because, the expression "in the money" means to a situation when the market price of the asset is higher than the strike price for a call or lower than the strike price for a put. The correct answer is the only option that reach this feature
Answer:
If management decides to eliminate this product line, the company’s net income will reduce by $22,000
Explanation:
<em>A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.</em>
<em>In a shut down decision , the following relevant cash flows should be considered:</em>
- <em>Lost contribution from the product to be shut down</em>
- <em>Savings in fixed directly attributable to the product under consideration.</em>
$
Lost contribution from shut down (100,000)
Savings in fixed cost (60% × 130,000) <u> 78,000</u>
Net loss from shut down <u> (22,000)</u>
Net loss from shut down = $(22,000)
If management decides to eliminate this product line, the company’s net income will reduce by $22,000