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.
Answer:
Options 1 - 4 are True but 5 is FALSE
Explanation:
All options given are indicators of economic growth and strong economic performance
When considering the economic prospects of a country, it can be said that: 1. the advantages of building brand loyalty and gaining experience in a country's business practices is greater for a last-mover than for a first-mover <em>because the last-mover has the chance to learn from the mistakes of the first-mover and perfect on them</em>
2. countries which do not have property rights protection tend to achieve greater economic growth rates because<em> </em><em><u>prosperity and property rights are inextricably linked</u></em><em>. The importance of having well-defined and strongly protected property rights is now widely recognized among economists and policymakers</em>
3. the economic system and property rights regime are reasonably good predictors of economic prospects of a country because <em>widely accepted explanation is that </em><u><em>well-enforced property rights provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>
4. countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth because as stated in 3 above <u><em>ill-enforced property rights does not provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>
5.countries with command economies tend to achieve greater economic growth rates than free market economies.
<em>This is FALSE because one of the Command economy disadvantages include lack of competition and lack of efficiency.
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C: They charge extremely high interest rates.
Answer: Please see explanation column for answers.
Explanation:
a)Journal to record issuance of the shares at a stated value of $1
Date Account and explanation Debit Credit
june 6 Cash $24,000
Common stock at $1 stated value $4000
Paid in capital in excess of stated value $20,000
Calculation:
Cash = issued shares x price per share
4000 x $6 = $24,000
paid in capital in excess pf par stated value = $6- $1 x 4000 = $20,000
b)Journal to record issuance of the stock in acquiring the land.
Date Account and explanation Debit Credit
Land $85,000
Common stock at $10 (5000 x 10) $50,000
Paid in capital in excess of par value $35,000
Calculation:
cash to purchase land = issued shares x price per share
85,000= 5000 x $
$ = 85,000 /5000 = $17
Paid in capital in excess of par value $17-10 x 5000 = $35,000
Answer:
cash budget
Explanation:
A financial budget within budgeting refers to the long-period and short-period planning of the company's revenue and expenditure. Exact cash flow forecasts help the company achieve the goals in the correct way.
A financial budget is indeed a potent tool for achieving any enterprise's lengthy-term goals. Relevantly, it also helps to keep the stakeholders as well as other institution members up-to-date on the company's ability to function.
Thus, from the above we can conclude that cash budget can be termed as finance budget.
