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3 years ago

Financial markets allow for all but which one of the following?

Business

2 answers:

Neko [114]3 years ago

8 0

Answer:c

Explanation: financial markets provide the economy with liquidity. Therefore it forms a channel to create capital for businesses as well as the government and in turn allows for the flow of funds between borrowers and lenders.

PtichkaEL [24]3 years ago

5 0

Answer:

d. allow most participants to routinely earn high returns with low risk

Explanation:

In the financial markets there is always an element of risk in transactions. Generally speaking the higher the risk the higher the gain.

Low risk instruments have low returns on investment. Even for these low risk assets sometes the risk can be high for example if a client has a fixed deposit with a bank, and the bank liquidated. The client may not get his full funds invested back.

High risk markets like the forex market has one of the highest returns on investment, but high risk can also make an investor lose substantially.

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Why is it difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?

Andre45 [30]

Answer:

1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.

2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.

3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.

4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.

4 0

3 years ago

Which of the following taxpayers may not use the standard mileage method of calculating transportation costs? a. A self-employed

frozen [14]

Answer:

The correct answer is (E)

Explanation:

A standard method of calculating transportation cost is used to maintain equality among organisations. This method is applied to all the workers and government employees, but it has some rules and regulations. If an employee for example attorney is using his vehicle for calling on clients is fine as long as the car average fuel consumption is standard. For example, if an attorney used his Tesla for calling on clients is not a standard way which is why transportation cost will not be calculated by the standard mileage method.

4 0

3 years ago

Which one of the following positions would have salaries or wages that are classified as a factory overhead cost by a baking com

frutty [35]

<u>Answer: </u>

Out of the following positions, the position of the factory supervisor would have a salary or wage that is classified as a factory overhead cost by a baking company.

<u>Explanation: </u>

For a baking factory, professionals like a baker, a salesman, or the president of the company are mandatory to have.
The need for a factory supervisor arises only if it is devised or felt that the employees would not work properly if they are not monitored.
If such a need is not felt anymore, the salary of the factory supervisor would be considered as an overhead cost by the company.

7 0

3 years ago

A complex structure of offices, tasks, and rules organized within a hierarchy of authority is known as a(n) ______.

iogann1982 [59]

Bureaucracy is a formal system of of organization and administration designed to ensure the efficiency and effectiveness. *Bureaucratic Structure*

8 0

2 years ago

Red Sox Corporation wants to purchase a new machine for $350,000. Management predicts that the machine can produce sales of $205

Cloud [144]

Answer:

The payback period for the new machine is 3.5 years.

Explanation:

Pay Back Period: The pay back period shows that period in which the borrower has to repay the borrowed amount taken by the financial institution.

In Mathematically,

Payback Period = Initial Investment ÷ Annual cash inflows

where initials investment is $350,000 given

And, the annual cash flows is to computed which is shown below:

= Sales - all expenses - Depreciation - tax rate + depreciation

where,

Sales - all expenses - Depreciation = Net income before tax

Net income before tax - tax rate = Net income after tax

Net income after tax + depreciation = Annual cash inflows

And Depreciation = (Purchase cost - Residual value) ÷ Useful life

So,

Depreciation = $350,000 ÷ 5 = $ 70,000

$205,000 - $85,000 - $70,000 = Net income before tax = $50,000

$40,000 - 35% = Net income after tax = $32,500

$32500 + $ 70,000 = Annual cash inflows = $102,500

Since the depreciation is non cash expense, so it is added back.

Now Payback period = Initial Investment ÷ Annual cash inflows

= $350,000 ÷ $102,500

= 3.5 years.

Thus, the payback period for the new machine is 3.5 years.

8 0

3 years ago