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3 years ago

To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask?

Business

2 answers:

Gennadij [26K]3 years ago

7 0

Answer:

What are the alternatives?

What is the likely return?

Is the risk worth the return?

Explanation:

In order to assess the risk and the returns involved in a purchase decision the practical decision which the potential buyer needs to answer or needs to ask is those mentioned above, as the buyer needs to make sure of the alternatives available, to him and the also assess the likelihood of the rate of return and the risks involved in the returns.

Daniel [21]3 years ago

6 0

I think there are about three correct answers from the list. To assess risk and return involved in a purchase decision, a potential buyer should ask the following:

What can go wrong?
What are the alternatives?
Is the risk worth the return?

Hope this answers the question. Have a nice day.

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Answer:

d. bA < 0; bB = 0.

Explanation:

The possible answers that best describes the historical betas for A and B is bA < 0; bB = 0 because an average annual return for stock B is stable and constant, its beta would be zero. An average annual return for stock A is higher once market’s average annual return is lower or lesser in which therefore indicates that its beta is negative.

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3 years ago

Danks Corporation purchased a patent for $405,000 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Da

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Answer:

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Explanation:

The computation of the amount that should be reported for patent amortization for the year 2021 is shown below:

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3 years ago

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4 years ago

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Answer:

The correct answer is option A.

Explanation:

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4 years ago

Which of the following interactions with vendors would potentially lead to inventory reductions?

VMariaS [17]

Answer: a. reduced lead times

Explanation:

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Same goes for the reduction of lead times in transaction with vendors. With a shorter lead time, the process of making goods available for sale would be less and thus the goods can be sold in the market quicker therefore reducing inventory levels.

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4 years ago