Answer:
optimum
Explanation:
An optimum decision as defined in the question can be defined as the most appropriate decision taken by a manager in the light of what they to be the most desirable consequences for the company.
This simply means that when an event or occurrence takes place in a company, the managers have the responsibility to take the best decisions for the company. The best decision is therefore called the optimum decision; that is the highest level of decision that solves the problem with the smallest of consequences.
Cheers.
Answer:
These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.
Explanation:
1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.
2)
For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.
Answer:
Direct foreign investment
Explanation:
Foreign direct investment (FDI) is done in the case when the company controls the ownership in the other country of the business entity
Here the foreign company would be directly linked with the day to day operations that done in the other country this means that here not only the contribution of money matters but also the knowledge, skills, capabilities, techonology is also matter
Therefore the above represent the answer
Answer:
$651,000
Explanation:
The balance in the investment account as at 31st December is calculated as;
Investment account balance January 1, 202X
$624,000
Add:
30% of Turks services inc. $120,000
Net income
$36,000
Less :
30% of $30,000 dividend paid
($9,000)
Investment account balance December, 31 202X
$651,000
