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Anarel [89]
3 years ago
7

As a new investment adviser (IA) firm, your company wants to obtain more clients. In an attempt to do so, one of the employees s

uggests a one-year offer to prospective clients. The offer would refund client's management fees if the client's portfolio value did not increase by 12% at the end of the first year. This fee arrangement:
Business
1 answer:
IRISSAK [1]3 years ago
8 0

Answer:

D) is not acceptable because such a guarantee would cause a conflict of interest pertaining to the IA's fiduciary duty to each client

Explanation:

The members of the North American Securities Administrators Association (NASAA) must follow their Model Rule which prohibits investment adviser firms from guaranteeing investment results, in other words they cannot guarantee a minimum profit.

In this case the employee suggested that if their clients didn't earn a minimum 12% profit, then they would refund any fees collected. But the IA firm is not allowed to guarantee the 12% value increase or profit.

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Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $29 in cash along with receipts for th
Korolek [52]

Answer:

Entries are posted

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

January 1 (Cash fund being recorded in petty cash)

Account                                   Debit         Credit

Petty Cash                              $140

Cash                                                            $140

January 8

Postage                                   $46

transportation-in                     $14

delivery expenses,                  $16

miscellaneous expenses,       $35

Cash                                                               $111

January 8 ( petty cash funds being increased )

Pettcash                                  $50

Cash                                                               $50

8 0
3 years ago
What tools can you use consistently use to resolve value conflicts?​
7nadin3 [17]

Answer:

Value conflicts can be defined as the issues which arose when the standard or predicted results are not achieved.

Explanation:

In an organization, a values conflict might arise if decisions are made or actions taken that result in compromising a stated value. Tools to resolve value conflicts.

Ignorance: Ignorance can be useful sometimes. If a mistake is too small which  can be ignored or which has not that much affect on the concern topic then it is necessary to ignore.

Mediate it: Sometimes, the small or unnecessary things turn into a big issue which can be dangerous if not mediate properly. Thus correct and timely mediation is a required factor to resolve value conflict.

8 0
3 years ago
Warephase Corporation has preferred stock outstanding. The stock has a 16% dividend rate. The stockâs market price is $80 per sh
alina1380 [7]

Answer:

The cost of the company’s preferred stock financing is 15.7%

Explanation:

In this question, we are asked to calculate a company’s cost of preferred stock financing.

Firstly, we calculate the annual dividend of the company.

Mathematically, that is equal to dividend rate * par value

From the question, dividend rate is 16% while par value is $75

Thus, Annual dividend is 16/100 * 75 = $12

To get the cost of preferred stock, we employ a mathematical approach.

Mathematically, cost of preferred stock = Annual dividend/(current price - floatation cost)

From the question, current price is $80 while the floatation cost is $3.5 per share.

Cost of preferred stock = 12/(80-3.5)

= 12/76.5 = 0.157

This is same as 15.7%

5 0
3 years ago
Read 2 more answers
Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided t
777dan777 [17]

Answer:

B. $1,500 F

Explanation:

                                          Flexible    Planning     Activity  

                                          Budget     Budget      Variance

Customer served (q)             17             20  

Travel expense ($500q)   $8,500     $10,000     $1,500 (Favorable)

Workings

<u>Travel Expense </u>at 500q

Flexible budget = 500 * (17) = $8,500

Planning budget = 500 * (20) = $10,000

5 0
3 years ago
Sheridan Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled
klemol [59]

Answer: $3.40

Explanation:

Based on the information given in the question, the materials cost per unit will be calculated thus:

First, we'll calculate the completed units which will be:

= 18500 - 1400

= 17100

Ending inventory = 1400 units

Equivalent Production Unit with respect to Material = (17100 x 100%) + (1400 x 100%)

= 18500 Units

Material Cost Per Unit will be:

= Total Material Cost / Equivalent Production Unit

= $62900 / 18500

= $3.40 per unit

The material cost per unit is $3.40

7 0
2 years ago
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