1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
a_sh-v [17]
3 years ago
9

Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan

ce. Kirby has interviewed two potential advisors. The first person indicated that he would not charge for his advice but would charge a 4.50% commission on any mutual funds purchased when managing the $250,000. The second person indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. Which advisor should Kirby choose if he wants the $250,000 managed and is interested in minimizing his upfront expenses?
A. The first advisor because there is no planning fee.
B. The second advisor because the total first-year cost is $5,000.
C. The first advisor because the total first-year cost is $5,000.
D. Because the cost is approximately the same, either advisor could be selected.
Business
1 answer:
Blababa [14]3 years ago
5 0

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

You might be interested in
ProForm acquired 70 percent of ClipRite on June 30, 2017, for $770,000 in cash. Based on ClipRite's acquisition-date fair value,
11Alexandr11 [23.1K]

Answer and Explanation:

The computation is shown below:

The amount of consolidated sales balance is  

Proform Sales 820,000

Cliprite Sales 640,000

Less: Intra-entity Sales -270,000

Consolidated Sales Balance $1,190,000

The amount of consolidated cost of goods sold balance is

Proform's Cost of Goods Sold Book Value 545,000

Cliprite's Cost of Goods Sold Book Value 410,000

Less: Intra-Entity Transfers -270,000

Adjusted Gross Profit Deferred in 2017 [(110,000 - 71,000) × 30%] -11,700

Deferral of 2018 Intra-Entity Gross Profit [(270,000 - 210,000) × 10%] 6,000

Consolidated Cost of Goods Sold Balance $679,300

The amount of consolidated operating expenses balance is  

Proform's Operating Expenses Book Value 120,000

Cliprite's Operating Expenses Book Value 110,000

Amortization of Intangible Assets 12,000

Consolidated Operating Expenses Balance $242,000

The amount of consolidated dividends balance is $0 as there is an elimination in consolidation.

The amount of net income attributed is  

Cliprite's Reported Income for 2018 120,000

Less: Amortization of Intangible Assets -12,000

Cliprite's Adjusted Net Income 108,000

Net Income Attributable to Non Controlling Interest (108,000 × 30%) $32,400

The amount of consolidated inventory balance is  

Proform's Operating Expenses Book Value 310,000

Cliprite's Operating Expenses Book Value 720,000

Intra-Entity Gross Profit [(270,000 - 210,000) ×  10%] -6,000

Consolidated Inventory Balance $1,024,000

The value of noncontrolling interest in subsidiary is  

30% of Opening Book Value [(870,000 + 300,000) × 30%) 351,000

Excess January 1 Intangible Allocation [(450,000 - 12,000 ÷ 2) × 30%)] 133,200

Net Income Attributable to Noncontrolling Interest 32,400

Dividends (70,000 ×  30%) -21,000

Non Controlling Interest, 12/31/18 $495,600

6 0
3 years ago
Harrison is generally satisfied with his current work, but he is not satisfied with how much he is being paid and the benefits h
Lostsunrise [7]

Harrison is generally satisfied with his current work, but he is not satisfied with how much he iAs being paid and the benefits he is receiving. Which type of job satisfaction is low for Harrison is facet satisfaction.

Job satisfaction is described as the level of contentment employees sense with their activity. This goes past their each day obligations to cover satisfaction with team participants/managers, satisfaction with organizational rules, and the impact in their process on employees' personal lives.

Activity pride, job satisfaction, or painting pride is a measure of employees' contentedness with their activity, whether or not they just like the job or character factors or sides of jobs, which includes the nature of labor or supervision. activity pride can be measured in cognitive, affective, and behavioral components.

Job satisfaction is primarily based on how we experience our activity – the good profession additives that make us feel valued or let us feel like we've got a cause, vs. the terrible additives, which include long hours or ugly tasks, or feeling undervalued as a worker.

Learn more about job satisfaction  here brainly.com/question/235909

#SPJ4

8 0
2 years ago
Sansa, Cercei, and Tyrion have just finished their team's project and are waiting for their supervisor's feedback. Cercei has be
Gnoma [55]

Answer:

Cercei's mood would be categorized as:

negative activated.

Explanation:

Moods do not last longer than emotions.  Like Cercei's that unengaged and quiet mood during the project duration, it starts and ends within some period of time.  However, a person's mood can be described as either negative or positive.  Since Cercei's mood was negative from the commencement of the project to its ending, one can conclude that she activated her negative mood during the period.

4 0
3 years ago
Which country does not claim ownership of the invention of churros?.
Juli2301 [7.4K]

Answer:

Mexico

Explanation:

The history of the churro is the subject of much debate. Three countries claim ownership of the snack: Spain, China, and Portugal.

8 0
2 years ago
A ________ gives a franchisee the right to produce and distribute the manufacturer's products, using supplies purchased from the
Mars2501 [29]
The answer is Product franchise. A product franchise is a diversifying assertion where producers enable retailers to disseminate items and utilize names and trademarks. An assembling establishment is a diversifying understanding where the franchisor enables a producer to create and offer items utilizing its name and trademark.
4 0
3 years ago
Other questions:
  • The following section is taken from Ivanhoe's balance sheet at December 31, 2021. Current liabilities Interest payable $ 47,500
    15·1 answer
  • Where does the wave erosion occur and where
    14·1 answer
  • A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a four-year lease term (also
    11·1 answer
  • To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groc
    6·1 answer
  • What is the expected return on a portfolio comprised of $9,750 of Stock X and $4,520 of Stock Y if the economy enjoys a boom per
    15·1 answer
  • Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three
    11·1 answer
  • Define internal customers​
    12·1 answer
  • A product priced at $5 has annual sales of 1,000 units. When price is reduced to $4, quantity increases to 1,250 units. Other th
    9·1 answer
  • A product's target market is part of which of the 4 P's of marketing?​
    5·1 answer
  • Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied over
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!