Is known as multiple- unit pricing.
The amount of annual depreciation by the straight-line method is $18,800.
<h3>Annual depreciation</h3>
a. Annual depreciation
Annual depreciation=[($80,000 - $4,800) ÷ 4]
Annual depreciation=$18,800
b. Annual depreciation
Year 1 Annual depreciation= 10% × $80,000
Year 1 Annual depreciation = $8,000
Year 2 Annual depreciation= 10% × ($75,000 - $7,500)
Year 2 Annual depreciation = $7,520
Therefore the amount of annual depreciation by the straight-line method is $18,800.
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Answer:
D. asymmetric information.
Explanation:
Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used cars. This is an example of an asymmetric information.
An asymmetric information can be defined as a situation wherein there's an imperfect flow of information or knowledge between the buyer and the seller of a product; sellers having more knowledge than the buyer of a product.
Answer:
A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Risks:
The level of risk in a mutual fund depends on what it invests in. Stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return. These kinds of funds also tend to have a greater risk of a larger drop in value—yet the greater the risk, the greater the reward (or potential for higher returns).
Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.
