All categories

4 years ago

Which one of the following is an example of systematic risk?

Business

1 answer:

lukranit [14]4 years ago

6 0

Answer: Option B

Explanation: Systematic risk points to the uncertainty of the industry or market segment as a whole. Systematic risk, often recognized as "undiversifiable danger," "fluctuation," or "market risk," affects not only a single share or sector, but the market at large. It is both uncertain and impossible to remove this type of risk altogether.

Thus, from the above we can conclude that the correct option is B as the changes in tax rates impacts the whole industry. Also such changes are in the hands of government therefore,. these are both unpredictable and unavoidable.

You might be interested in

The wage rate is $10 per hour and the last worker hired by the firm increased output by 100 units. Computers rent for $100 per h

const2013 [10]

Answer:

To minimise cost, the firm should lay off worker and rent more computer as it give more output per dollar invested on it. This reduce the fixed cost of the company drastically and increase the production of the company. The marginal cost of production and marginal revenue are economic parameter, which help to determine the amount of output and price per unit of input that will maximise the profits. The point at which marginal revenue is equal to marginal cost maximise the profit.

5 0

3 years ago

Trying new things on the job is one way of keeping Young

SCORPION-xisa [38]

Interesting...............

7 0

3 years ago

On June 1, 2018, Perfect Performance Cell Phones sold $ 17,000 of merchandise to Ashton Trucking Company on account. Ashton fe

inn [45]

Answer:

See answers and explanation below.

Explanation:

1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.

Date Details Dr ($) Cr ($)

1 Jun. 18 Account receivable 17,000

Sales revenue 17,000

To record sales to Ashton Trucking Company on account.

15 Jul. 18 Cash 6,000

Account receivable 6,000

To record cash received from Ashton Trucking Company.

5 Sep. 18 Bad debt 11,000

Account receivable 11,000

To record accounts receivable from Ashton written off.

5 Mar. 19 Account receivable 11,000

Bad debt 11,000

To record transfer of bad bad back toaccounts receivable.

5 Mar. 19 Cash 11,000

Account receivable 11,000

To record cash received from Ashton Trucking Company.

2. What are some limitations that High Performance will encounter when using the direct write-off method?

a. It is not in line with the matching principle. This is because bad debt expenses will not be reported in the same period they are incurred and might not be realized as bad expenses until the following period.

b. It can cause inaccurate balance sheet as it does give the actual amount of accounts receivable of a company.

c. It method of recording violates GAAP and financial statements does to present the actual financial performance of the business.

d. It overstates accounts receivable as the full amount of amount owed to the company from credit sales will be reported as accounts receivable.

6 0

3 years ago

What two trends in the past decade have significantly influenced global marketing?

SOVA2 [1]

The two trends that influenced global marketing in the last decade were:

Formal economic integration.

Free trade between nations.

Global marketing can be defined as a management strategy for organizations that also market their products and services in foreign countries.

Globalization has enabled formal economic integration and free trade between nations, and has created the possibility for companies to increase their profitability and market share.

As an example, we can mention the fast-food chain Mc Donalds, which has a presence almost all over the world, but which adapts its burgers according to local habits.

Therefore, a global company must adopt global marketing, that is, adapt to local customs, culture and preferences for the business to be successful.

Learn more here:

brainly.com/question/1528741

4 0

2 years ago

As the CEO of a conglomerate, Eva Morris exhibited her strong commitment toward the company's core value that customers' well-be

jenyasd209 [6]

Answer: social responsibility of business to customers

Explanation:

social responsibility of business is the voluntary roles which business play in the society

It is the moral obligation that business owes the society, in other words, it refers to the ways in which business enterprises could assist to develop the local communities in which they operate.The business can have responsibilities towards the following

Owners : The business has it as a responsibility to protect the investment of its owners. It has to ensure that a reasonable return is earned on such investment, in addition, efforts must also be geared toward ensuring the growth of the business.

Customers : The business responsibility to their customers include the production and distribution of high quality goods and services advertising correct and not defective goods and services, labelling goods clearly and correctly, offering and explaining credit facilities and adopting after sales services. The business must recognize that the ultimate success or failure of the business rest to a large extent with the customers, The business must ensure that they do not sell to their customers fake product or produce products which may be injurious to the health of their customers.

Employees : The employees are the Labour component of the factors of production, the responsibility of the business to their employees is to pay commensurable salaries and provide satisfying work ,job security and good working conditions for their employees.

Creditors : The creditors are those individuals or organizations whom the business owe money.It is the responsibility of the business to repay these debt as they fall due.It is equally essential for business to cultivate a good culture of debt management.

Government : The business has a responsibility to obey the various government laws guiding business operations. It must also pay its taxes at the right time and contribute to the economic development of the country.

8 0

3 years ago