All categories

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. <span>To assess risk and return involved in a purchase decision, a potential buyer should ask the following:

</span><span>What can go wrong?
</span>What are the alternatives?
<span>Is the risk worth the return?

Hope this answers the question. Have a nice day.</span>

You might be interested in

Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Combs uses 500 grams of plastic and one-

Sholpan [36]

Answer:

Budgeted labour cost =$8,550

Explanation:

Labour budgeted is prepared using the production budget data. This is simply because the budgeted labour hour is a function of the budgeted production units.

Budgeted labour hours = Production budget × standard hours per unit

= 380 × 1.5 hours=570

Budgeted labour cost= Budgeted labour hours × Standard labour rate

= 570 hours × $15 =$8550

Budgeted labour cost =$8,550

7 0

3 years ago

During the Pillsbury Bake-Off, thousands of people across the country compete to create the best new recipe using the sponsor's

faltersainse [42]

Answer:

contest

Explanation:

Based on the information provided within the qeustion it can be said that this promotion is an example of a very successful contest. A contest is an event in which a large amount of people compete in a certain task in order to prove that they are the best at that task. These events usually have a grand prize for the winner. Which in this scenario this contest's top 100 finalists are flown to Florida to compete in another contest in order to win $1 million dollars.

6 0

3 years ago

A company sells q ribbon winders per year at $p per\ribbon winder. The demand function for ribbon winders is given by P=300−0.02

Harrizon [31]

Answer:

0.30

Demand is inelastic and an increase in price would lead to an increase in total revenue

Explanation:

P=300−0.02Q

Make q the subject of the formula by dividing through by 0.02

50P = 15,000 - Q

Q = 15,000 - 50P

Differentiate the above equation

$\frac{dp}{dq} = -50$

Determine the value of q when p is 70

Q = 15,000 - 50(70) = 11,500

Elasticity = $[\frac{p}{q} . \frac{dp}{dq} ]$

[ $\frac{70}{11500} . -50]$ = 0.30

Demand is inelastic and an increase in price would lead to an increase in total revenue

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

3 0

3 years ago

The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of:.

Firlakuza [10]

A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).

<h3>How is interest decided?</h3>

It is based on various risks such as credit risk and maturity risk.
Credit risk of a company is shown in its credit rating.
The maturity risk increases as the length of time to repayment increases.

The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.

In conclusion, option A is correct.

Find out more on maturity risk at brainly.com/question/24780094.

3 0

2 years ago

To get the best deal on a CD player, Tom called eight appliance stores and asked the cost of a specific model. The prices he was

Angelina_Jolie [31]

Answer:

$84.86

Explanation:

I'm guessing they want you to find the standard deviation.

It would be easy to do this in a statistical calculator, but I suspect they want you to do it by hand.

Here are the steps for a manual calculation.

1. Count the elements in the data set

N = 8

2 Calculate the sum of the data set

$\displaystyle \sum_{i = 1}^{8}x_{i} = 2011$

3. Calculate the mean

$\mu_{x} = \dfrac{2011}{8} = 251.375$

4. Calculate the standard deviation

(a) Subtract the mean from each data point

(b) Square the differences

(d) Divide the sum by the number of terms

(e)Take the square root of the result

We can set up a table to organize the calculations.

$\begin{array}{rrr}\mathbf{x} & \mathbf{x - \mu} & \mathbf{(x - \mu)^{2}}\\298 & 46.63 &2174\\125 & -126.38 & 15971\\411 & 156.93 & 254801\\157 & -94.38 & 8907\\231 & -20.38 & 415\\213 & -38.38 & 1473\\304 & 52.63 & 2769\\272 & 20.63 & 425\\\sum = \mathbf{2011} & & \mathbf{57614}\\\end{array}\\\\\sigma = \sqrt{\dfrac{ 57614}{8}} = \sqrt{7201.7} = \mathbf{\$84.86}$

3 0

3 years ago