All categories

3 years ago

According to the Investment Company Act of 1940, the definition of "investment company" could include which of the following

Business

1 answer:

kicyunya [14]3 years ago

7 0

Answer:

Option (B) is the right answer.

Explanation:

According to the investment company Act of 1940, the investment companies are those companies whose main business is to gathers investment capital to invest them in marketable securities.

Hence According to the scenario, the most appropriate answer is option (B).

While the other option is incorrect because of the following reason:

Brokers/dealers can not be considered as an investment company because they are not the company.

Pooled investments in metals are not an investment company but considered as the commodity pool.

Insurance companies are also not investment companies.

You might be interested in

g An automobile dealer expects to sell 529 cars a year. The cars cost $11,000 plus a fixed charge of $500 per delivery. If it co

harkovskaia [24]

Answer:

Order size = 23 cars

The number of orders = 23

Explanation:

The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.

The EOQ is computed as shown below;

= √ 2 × Co × D)/Ch

Co = Ordering cost

D = Annual demand

Ch = Carrying cost

EOQ = √ 2 × 500 × 529 / 1,000

EOQ = 23

Number of cars to be ordered per time, I.e optimal order size = 23

Order size = 23 cars

2. The number of times orders should be placed per year would be calculated as;

Number of orders = Annual demand / Order size

Number of orders = 529 / 23

Number of orders = 23

4 0

3 years ago

Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. The broker quotes a price of $1,180. Jim

Dimas [21]

Answer:

Jim Busby and Bonds of Disk Storage Systems

The new price of the bond is:

= $21,059

Explanation:

a) Data and Calculations:

Quoted price of bond = $1,180

Face value of bond = $1,000

Coupon interest rate = 14%

Bond's maturity period = 25 years

Current yield to maturity = 12%

Therefore, new price of the bond is computed as follows:

Bond Price = C* (1-(1+r)-n/r ) + F/(1+r)n

where C = Periodic coupon payment = $140 ($1,000 * 14%)

• F = Face / Par value of bond = $1,000

• r = Yield to maturity (YTM) = 12% and

• n = No. of periods till maturity = 25 years

= $140 * (1 – (1+0.12)^-25)/0.12 +$1000/(1+0.12)^25

= $140 * (1 - -17.00)/0.12 + $1,000/17.00

= $140 * (18.00)/0.12 + $1,000/17.00

= $140 * 150 + $59

= $21,000 + $59

= $21,059

5 0

3 years ago

The Laffer curve shows the relationship between tax rates and ____________ and depicts the benefits of cutting taxes when tax ra

MrMuchimi

Answer: tax revenue

Explanation:

The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.

The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.

7 0

2 years ago

Which management assertion is usually most relevant for liability accounts? 1. Completeness. 2. Existence.3. Rights and obligati

katovenus [111]

Answer:

The right answer is 3. Rights and obligations.

Explanation:

Liability accounts include all those financial obligations that a company has with suppliers, accounts payable, taxes, among others.

8 0

3 years ago

A trial balance (select one):

Furkat [3]

Answer:

a. is a list of accounts with their balances at a given time.

Explanation:

There are two columns in the trial balance, namely debit columns and columns of credit. The total amount of columns of debit and credit should always match and equaled.

The debit columns reflect assets and expenses side while earnings, stockholder equity, and liability side are listed in the credit column. It is prepared for the given period of time.

4 0

3 years ago