The ability to meet short-term obligations and efficiently generate revenues is called Liquidity.
Liquidity is the ease or speed with which money can be raised to meet short-term financial responsibilities such as paying bills. Stocks and bonds, as well as other easily tradable assets, are regarded as liquid assets.
A company's liquidity can be determined by how well it can meet its short-term obligations, particularly those that are due in less than a year. What the business owes in comparison to what it owns is typically represented as a ratio or percentage. You can gain insight into the company's financial situation by using these metrics.
The liquidity status of a business is primarily affected by two factors. The first factor is its capacity to transform assets into cash to cover its present liabilities (short-term liquidity). Its debt-carrying capability is the second.
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Answer:
Task 1:
The answer is $700.
Task 2:
The answer is $130.
Task 3:
The answer is $20.
Task 4:
The answer is $10,570.
Task 5:
The answer is $110.
Explanation:
<h2>Task 1:</h2><h3>How much does each investor make on his investment with the 7% rate of return?</h3><h3>Solution:</h3>
Adrian & Clemens makes [$10,000*0.07] on their investment = $700.
<h2>Task 2:</h2><h3>How much does Adrian pay in fees for his actively managed mutual fund?</h3><h3>Solution:</h3>
Adrian owes to his broker = (10000*.013) = $130
<h2>Task 3:</h2><h3>How much does Clemens pay in fees for the index fund?</h3><h3>Solution:</h3>
Clemens owes to his broker= ($10000*.002) = $20
<h2>Task 4:</h2><h3>At the end of the year, what's the total value (AFTER FEES) of Adrian's mutual fund?</h3><h3>Solution:</h3>
Value of Adrian's stock = $10000+$570 (net of brokerage) = $10,570
<h2>Task 5:</h2><h3>What's the total value (AFTER FEES) of Clemens's index fund?</h3><h3>Solution:</h3>
Value of clemens' stock = $10000+$680 (net of brokerage) = $10,680
<h2>Task 6:</h2><h3>How much more value does Clemens' investment generate than Adrian's in one year's time?</h3><h3>Solution:</h3>
Clemens investment makes ($680-$570) than adrian's investment = $110
Answer:
The correct answer is: black market for apartments whereby higher rents are obtained through various other charges.
Explanation:
A price ceiling refers to an upper limit fixed for the price of a product or service. A rent ceiling means that rent cannot be charged higher than this limit.
This rent ceiling would create higher demand and a smaller supply of apartments. This is because of law of demand and law of supply.
Because of shortage of apartments in the market, a black market will be created where the apartment owners will be able to charge higher rents through other charges.
Answer:
Stockholders
Explanation:
Stockholders are the owners of a company. As owners , stockholders have voting rights in the company. Shareholder elects directors who represent them on the board of directors. Each share is equivalent to one vote. The board members recruit top management of the company. The board provides policy guidelines, makes critical decisions, and supervises senior management.
By electing board members, shareholders influence the management of the business. Should the stockholders be unhappy with the way the company is being managed, they can vote out the current director and elect new ones. The new directors then appoint fresh managers. In this way, shareholders maintain control of the assets of the company and its assets.
Answer: Option C
Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.
In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.
