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3 years ago

As you get closer to needing the money from an investment, what happens to your risk tolerance

Business

1 answer:

Sedbober [7]3 years ago

8 0

Risk tolerance gets lower and lower as you get closer to needing the money from your investment.

If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.

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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.

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3 years ago

A corporate dissolution: a. cannot result from an agreement. b. results when a corporation does not hold an annual meeting. c. c

kogti [31]

Answer:

The correct answer is (C)

Explanation:

Corporate dissolution is a termination of cooperation that results after a complete consent of the board of directors. Likewise, a corporate dissolution is a serious step that can begin with a board resolution. If the board of directors are on one page then it becomes easier to dissolve cooperation. It can only be done by a vote to approve the resolution by the board of directors and shareholders.

7 0

3 years ago

In the context of the strategies for reaching global markets, a(n) _____ is a firm that is offered the right to produce and mark

VladimirAG [237]

A licensing firm is a firm that is offered the right to produce and market another firm's products if it agrees to specific operating requirements.

<h3>What is a licensing firm?</h3>

A firm, which does not have a product of its own, but specializes in production and marketing of its client firms' products by the way of obtaining a licensed agreement, it is known as a licensing firm.

For example, in India, Varun Beverages Ltd. is a licensing firm that has been offered the rights to produce and market the products for PepsiCo.

Hence, the significance of a licensing firm is aforementioned.

Learn more about a licensing firm here:

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2 years ago

Where is a more popular place a thief would go to troy to steal your personal information?

pantera1 [17]

A cafe or restaurant with a free unprotected network

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3 years ago

In the month of November, Carla Vista Co. Inc. wrote checks in the amount of $9,565. In December, checks in the amount of $11,46

liberstina [14]

Checks written in November $9,750

Less: Checks paid by bank in November $8,800

Checks outstanding at the end of November $950

Add: Checks written in December $11,762

Less: Checks paid by bank in December 10,889

Checks outstanding at the end of December $1,823

hope this helps!

- a random freshman

7 0

3 years ago