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lara [203]
3 years ago
13

Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a f

inancial advising organization has decided to use cash from newer investors to pay off older ones. The actions of management are an example of ____________.a) a code of conduct b) a Ponzi scheme c) a business plan d) insider tradinge) a JIT system
Business
1 answer:
xxMikexx [17]3 years ago
7 0

Answer:

The correct answer is b) a Ponzi scheme.

Explanation:

The Ponzi Scheme is a fraudulent investment operation that involves paying investors interest obtained from the money of new investors (and not from the generation of genuine profits). It is a pyramidal system, in which the only way to share benefits requires that participants recommend and capture (refer) to more clients with the objective that new participants produce benefits to primary participants.

This system does not invest in financial or other instruments, it only redistributes money from some investors to others, so the system works only if the number of investors in the pyramid continually grows; once people stop entering the "business", the scammer is prevented from fulfilling his promise and the pyramid collapses

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What you give up for taking some action is called the . is falling when marginal cost is below it and rising when marginal cost
Nezavi [6.7K]
<span>What you give up for taking some action is called the opportunity cost.

Average total cost is falling when marginal cost is below it and rising when marginal cost is above it.

A cost that does not depend on the quantity produced is a fixed cost.

In the ice-cream industry in the short run, variable cost includes the cost of cream and sugar but not the cost of the factory.

Profits equal total revenue minus total cost.

The cost of producing an extra unit of output is the marginal cost.</span>
4 0
3 years ago
Prepare Krum Co.'s journal entries to record the following transactions involving its short-term investments in available-for-sa
ser-zykov [4K]

Answer and Explanation:

The journal entries are shown below:

On Aug 1

Short­-term investments $70,000  

        To Cash $70,000

(Being the short term investment is recorded)

Here short term investment is debited as it increased the asset and credited the cash as it decreased the asset

On Oct 30

Cash ($70,000 × 11% × 90 days ÷ 360 days) 1,925  

       To Interest revenue $1,925

(Being the interest revenue is recorded)

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue

Here we assume 360 days in a year

6 0
2 years ago
A 20​-year-old woman wants to purchase a ​$100​,000 ​one-year life insurance policy. What should the insurance company charge th
asambeis [7]

Answer:

Hello some parts of the question is missing here is the missing part

Age          probability of female death

20              0.00060

30              0.00070

40              0.00095

50              0.00300

Answer : $110

Explanation:

Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age

expected profit for insurance company = $50

cost of insurance = $100000

For the company to make a profit of $50 we make use of this relation

x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20  = 50

= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50

= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50

= 0.9994 x - 60 + 0.00060 x = 50

hence x = 50 + 60 = $110

3 0
3 years ago
Assume that you are the manager of a firm. You are concerned about a potential increase in interestrates because it would reduce
stepan [7]

(A) Concern about rising interest rates makes perfect sense, as the economy described is in a situation of overheating: high inflation, low unemployment and high economic growth. Rising inflation is a risk that requires the Fed to act to cool economic activity. This should be done through restrictive monetary policy instruments: raising interest rates and decreasing the monetary base, through the sale of government bonds and / or by increasing the banks' compulsory deposit with the Fed.

(B) This affects the credibility of the Fed, which is very bad. Economic agents base their expectations on Fed signals. If the money supply is higher than expected, real inflation will be higher than projected inflation. So expectations anchored in Fed forecasts will be dashed. This makes economic agents distrust future Fed projections.

6 0
3 years ago
The CEO of an international cruise line is facing an ethical decision regarding the installation of Man Overboard (MOB) technolo
dezoksy [38]

Answer:

The answer is: The Principle of Deontology

Explanation:

By making this decision (installing the MOB technology) the CEO follows the Principle of Deontology.

Deontology dictates that actions are right or wrong by themselves, not by their consequences or the virtues of the person doing them. An action is "right" if it follows a moral norm or a set of rules.

In this case, the CEO believes that installing the MOB technology is the right thing to do because it saves lives. He doesn´t care if it costs a lot of money or if it may cause some trouble and delays to the ships´ operations.

shows that he is made his decision based on the Concern for Others case it would be specifically concern for his customers and employees (they can also fall off the ship). He really cares about his customers and employees, and wants to accomplish his business goals but he is not willing to risk their lives while doing so. He is convinced that it is his responsibility to ensure the well being of all the passengers in his cruise ships.  

4 0
3 years ago
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