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3 years ago

Touchtech earns revenue when edison purchases 100 shares, even if he purchases them from an existing shareholder.

Business

1 answer:

Strike441 [17]3 years ago

6 0

Answer:

A. An increase in the perceived profitability of Touchtech will likely cause the value of Edison's shares to rise.

B. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison's shares to decline

Explanation:

The price of the stock changes only because of the changes in the profitability of the firm. If the company is earning lower profits then the prices of the stock will fall and vice versa. So the option A is correct because increase in profitability increases the value of the shares.

So the main thing here is the profitability of the firm which is affected by the recession in the economy because during the recession period the profitability of the firm decreases and so the value of the stock decreases. So the option B is correct

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Avoidance is a risk-control technique that can be used effectively in a risk management program. a. What is the major advantage

posledela

Answer:The major advantage of avoidance technique in risk management is that it is cheaper than every other method of risk management.

It is possible to avoid all potential loss by company

Explanation:The technique of avoidance save the company deploying it in risk management the stress of paying fines ,loss of funds , reputational damages that may arise among other things should a potential risk crystallized into full blown loss.it involves setting up method or safeguard that protects the institution from a certain level of risk ,it might involves abstaining from certain trasaction as a whole or setting risk limits for certain amount of trasaction,above this limits,it's no deal.

It is possible to avoid potential loss to a barest minimum by adopting the best risk management techniques as applicable,this include hedging in case of currency exchange ,taking insurance against unforseen circumstances, adopting industry best practices,avoiding illegal or overly risky ventures,having a proper risk management team in place.etc

8 0

3 years ago

Read 2 more answers

In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of internat

vodomira [7]

Answer:

B. Increased competition

Explanation:

Free trade is an economic policy where there are no restrictions to imports or export of goods and services.

Before the free trade, Sapphira had market power. She could set the price of her products. She would probably set her prices high enough to maximise profits.

Due to free trade which introduces more products to the market, sapphira is no longer able to set her prices as high as she used to. If her price is too high, consumers would not purchase her products.

This is an example of increased competition.

I hope my answer helps you

3 0

3 years ago

When the price of flour was $10 per unit, total spending on flour was $100,000 per day. When the price of flour fell to $8 per u

Brut [27]

Answer: demand increased

Explanation: Increased prices tends to result in lower demand, and demand increases generally lead to increased supply. However, a decrease in price results to increase in demand. supply of different products responds to demand differently, with some products' demand being more sensitive to prices than others. In this case at $10, $100,00 worth of flour was sold, a decrease in price to $8 saw an increase in demand with about 15,625 worth of product sold compared to 10,000 when at $ 10 that's an increase of 5,625 in demand.

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3 years ago

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Provide an example of how an international company (such as Unilever or Mondelez International) changes its distribution channel

mezya [45]

Answer:

The examples of the given circumstances are provided below.

Explanation:

<u>Interpretations of how the international corporation (including such Unilever) was indeed changing the distribution platform</u>:

Unilever transforms this same distribution network to potential consumers as well as ensures immediate access includes a multitude of shareholder but instead everyday items.
The corporation has a more adaptable distribution network which virtually guarantees direct services to consumers worldwide thru all the different retailers, shopping centers as well as other chain stores.

<u>Interpretations of how and why the International Corporation is changing targeted advertising</u>:

Unilever Advertisements have been created on the basis of the cultural values including its Country-Advertising Notifications besides Unilever impacts negatively on either the values of the people throughout order to determine if the project is uniquely equipped to address the requirements of the cultural identity as well as to raise the effectiveness of purchases.

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3 years ago

As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the re

k0ka [10]

The appropriate journal entry to record the transactions from the purchase through the end of the year, including any adjustment for the investment are:

1. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. No journal entry required

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. Debit Fair value adjustment $15,000

Credit Net unrealized holding gains and losses- OCI $15,000

($375,000-$360,000)

(To record fair value adjustment)

2. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. Debit Investment in Midlin common shares $27,000

Credit Investment revenue $27,000

($135,000×20%)

(To record investment revenue)

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. No journal entry required

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5 0

2 years ago