Answer:
$190
Explanation:
The equilibrium price of the lawnmower can be deduced from the graph ; it is the point of intersection of the orange and blue line ; which is the intersection point if the supply and demand line. The price axis is located on the vertical y-axis. This intersection point when traced to the left of the graph gives the equilibrium price. Hence, the equilibrium price as obtained from the graph is about $190
Answer:
Sell 10 XYZZ 45 call contracts
Explanation:
Since it is mentioned that the customer purchased for $40 and sale at $45 also he is neutral and thinks of a good investment. Therefore the stock should not be sold
Now if the customer sold the calls as opposed to the position of the stock than it would generate an additional premium income. This is we called conservative income strategy
Also if the stock increased, the expiration of put is done and the customer also owns the stock but if the stock decline, the short put is exercised i.e reflects that the customer should buy the stock
And in the recession market, the client lose doubles in a fast manner
Therefore the above is the answer
Answer:
Audit Risk and Materiality
These two concepts have an inverse relationship. When the materiality level is set low, the audit risk envisaged by the auditor is on the high side. When the materiality level is set high, the audit risk as perceived by the auditor is on the low side.
But, what exactly is materiality? Materiality refers to the basis that can change or influence the judgment of a reasonable person arising from a quantitative and qualitative omission or misstatement of a fact. And audit risk refers to the risk of material misstatement in the financial statements presented by a company.
Explanation:
The risk of material misstatement in the financial statements is the reason that professional auditors design their audit procedures to reduce the audit risk to an acceptably low level. This implies that auditors gather more audit evidence when the materiality is set to a low level, showing that audit risk has increased and vice versa.
Answer:
d. identifying local market characteristics can help the business owner better reach the market
Explanation:
Market segmentation is classifying customers into smaller groups based on various characteristics. The characteristics may include age, gender, income levels, preferences, lifestyles, and geographical locations.
Small business operates within a certain geographical area. The business owner or managers probably live in that area. The owner understands the culture, needs, and wants of the customers. The small business can, therefore, provide the goods and services that will satisfy the needs of different groups of customers.
Because a small business operates in a smaller area, its customer's needs are less likely to extremely divergent. Small businesses can, therefore, create more refine segments than a large enterprise serving customers in different regions.
Answer:
b.$20,000 ordinary income and $4,000 net long-term capital gain
.
Explanation:
For 2018, each shareholder should report:
180,000/9 = 20,000
36,000/9 = 4,000
b.$20,000 ordinary income and $4,000 net long-term capital gain
