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3 years ago

what is the description and the risk factors of unit trust,managed portfolio,shares,debentures,fixed property

Business

1 answer:

Vedmedyk [2.9K]3 years ago

8 0

Funds that can hold assets in unincorporated mutual fund structure is called a unit trust.

The profits that are earned will go straight to the individual unit owners and it won’t be reinvested back into the fund.

When a professional investor buys and sells shares in a share market on a person’s behalf, it is called a managed portfolio.

Equal units of ownership in a company’s capital are called shares. A share of profit is given to the holder of shares.

Debentures are debt instruments, which give the holder a right to get fixed interest income.

Fixed Property, also known as long term tangible assets are the assets that add value to an organization and help it in value addition. For example Land, Building and Machinery.

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Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t

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Answer:

The profit that they keep to reinvest in the business is recorded as D : retained earnings.

Explanation:

Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.

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3 years ago

Companies A and B are in the same industry and are identical except for cost structure. At a volume of 50,000 units, the compani

ASHA 777 [7]

Answer:

B. Company A's cost structure has higher fixed costs than B's.

Explanation:

Let's see the formula for income:

50,000 units x sales price - variable cost x 50,000 - fixed = net income

50,000 (sales - variable) - fixed = net income

At 50,000 both have equal net income.

Also we are given the fact that their sales is the same.

"identical except for cost structure"

So:

$50,000 (S-V_a)-Fixed_a = 50,000 (S-V_b)-Fixed_b$

We work it and remove sales from the equation:

$50,000S-50,000V_a-Fixed_a = 50,000S-50,000V_b-Fixed_b$

$-50,000Variable_a-Fixed_a = -50,000Variable_b-Fixed_b$

At 60,000 units, Company A has a higer income, so the increase of variable cost in company A is lower than company B

The cost of 10,000 more units is all variable cost, if Company A has more income, then their variable are lower.

If variable cost for 10,000 is lower, same applies for the variable cost for 50,000 so we have:

10,000Va < 10,000 Vb

50,000Va < 50,000Vb

So to have equal income at 50,000 units.

Fixed of A > Fixed of B

5 0

3 years ago

A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a

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Answer:

Revenues to be understated.

Explanation:

The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.

In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.

When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and the amount is less than the true amount.

The adjusting entry that should be done is:

Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.

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3 years ago

Compare and contrast the protection to intellectual property provided by trade secrets relative to that provided by patents. Wha

Vera_Pavlovna [14]

Answer:

1. Protection to trade secrets and patents:

a. Trade secrets are protected indefinitely. Generally, patents are granted for a maximum of 20 years.

b. The owner of a trade secret does not need to pay annual fee to defend the secret. A patent holder is required to pay an annual fee, in order to make the patent enforceable.

2. Important defense for defendants in trade secret cases that is not available to patent infringement defendants:

The defendant in a trade secret case will cite that the secret is still commercially valuable. But a patent holder cannot cite this because the patent is granted for a maximum of 20 years to stop stifling innovation.

Explanation:

Both trade secrets and patents are intellectual property rights which confer on their owners the exclusive use of their intellectual property. The major differences are in the duration and the defense of the rights. Patents, unlike trade secrets, do not last forever. Patents, again unlike trade secrets, must be defended periodically through the payment of fees.

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3 years ago

A growling sound is heard from the rear of a rear-wheel-drive vehicle during cornering only. Technician A says that defective re

NISA [10]

Answer: Technician A is correct.

Explanation:

Poor Wheel Bearings causes a car when driven to make noise when turning and it sounds like grinding. Bearings act like a cushion between an axle and the wheel. Due to the action of the bearings, they reduce to the barest minimum the friction between the two moving parts. That's why, a worn out wheel bearings leads to friction that causes the grinding sound when turning as the car bends.

In the case of the question the growling sounds are heard from the rear wheels, which increases the likelihood that faulty bearing is the rear ones.

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3 years ago