Answer:
True
Explanation:
Return on assets (ROA) is she valuable measure in assessing the effectiveness of company management in utilizing company capital. It is calculated
ROA=
Total Assets/
Net Income
where:
Total Assets=Shareholder Equity+Liabilities
Return on assets is closely related to return on equity as they are both almost used for same purpose which is measuring management's effectiveness in capital utilization. Return on equity differs from return on assets by the inclusion or exclusion of the debt factor in calculating them.
The relationship between ROA and ROE is demonstrated in DuPont formula which is given
ROE=profit margin*asset turnover*shareholder equity
According to the <em>"Not Too Big Enough" </em>article, some of the <em>sources of </em><em>scale economies</em><em> in the banking and finance industry</em> are as follows:
1. Bigger banks can spread their investment (fixed) costs over more output, thereby <em>reducing the </em><em>cost per unit </em><em>and making it impossible for </em><em>smaller banks </em><em>to compete in the market</em>. Most often, the smaller banks cannot afford investments in modern banking computing power and systems management.
2. Bigger banks can <em>consolidate banking functions</em> with the <em>elimination of redundancies </em>after each merger and acquisition. The cost of redundancies also gives them economies of scale.
3. Bigger banks have access to <em>larger pools of </em>deposits and will not engage in borrowing at higher costs. Smaller banks cannot tow this line because of their small scale, lacking the required funding mix.
4. Finally, advertising works best where a bank has a large geographic spread. The cost of advertising over a large area is worth it, unlike when a small bank markets its services by advertising.
2. These economies of scale mean that Oligopolies are increasing on Wall Street, and there will be further consolidations of smaller banks. Of course, every small bank would like to engage in mergers and acquisitions to grab a share of the scale economies.
Thus, <em>as banks grow large</em>, they should be mindful that enjoying the scale economies comes with the risk of crumbling like the banks regarded as <em>"too big to fail" </em>when they build on a pack of cards.
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<u>If the exchange rate between the U.S. dollar and </u><u>Japanese </u><u>yen changes from</u><u> $1 = 100 yen</u><u> to </u><u>$1 = 90 yen,</u><u> then: Japanese tourists to the U.S. will benefit.</u>
What happens in the foreign exchange market when a surplus of dollars exists?
- The supply and demand of each currency must be equal in order for the foreign exchange market to be in equilibrium, as it is in every market.
- Until equilibrium is reached, the exchange rate will change according to whether there is a surplus or shortage on the market.
What connection exists between the supply of foreign currency and the exchange rate?
- This decreases demand for exports and reduces the amount of foreign currency available, much like how domestic goods become more expensive for foreign consumers when the foreign exchange rate declines.
- As a result, there is a direct connection between the supply of foreign currency and the foreign exchange rate.
Learn more about foreign exchange
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Answer:
January cost allocated 9,900
February cost allocated 11,790
Explanation:
We will allocate the representative cost over the expected customer complaints during 2018:
$ 15,975 per month x 12 months / 21,300 complaints per year = $9 per complain solved
January processing customer complaints expense:
1,100 customers x $9 = $ 9,900
February processing customer complaints expense:
1,310 customers x $9 = $ 11,790
When you get a phishing email, your response should be as follows:
B. Check for phishing by hovering over the hyperlink, checking the sender's name, and reviewing for improper grammar and misspelled words.
E) Click the "Report Phish" button to report the suspicious email.
<h3>What is email phishing?</h3>
Email phishing is the sending of fraudulent messages to trick recipients into revealing sensitive information by making them think that they had become extremely lucky without participating in any lottery or game.
When email phishing is received, do not click the link or forward the email to another person. You do not need to respond to the sender, asking for its legitimacy.
2. The best way to navigate through the knowledge CHECK is <u>A. Click the Back button</u> to return to the video.
Thus, when you get a phishing email, your response should be <u>Options B and E</u>.
Learn more about email phishing at brainly.com/question/2547147
