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Sveta_85 [38]
2 years ago
14

Evaluate the following investment options by comparing their risk and liquidity: buying a franchise real estate (buying property

) mutual fund Which of the three investment alternatives is the best for you? Explain the reasons for your choice.
Business
1 answer:
Gala2k [10]2 years ago
8 0

Answer:

Buying a franchise: For me, this is the riskiest investment, because the success of the business depends on the product or service it sells. If there is no demand for the product or service, the business will go under. This investment is also highly illiquid—in addition, finding someone willing to buy a business is difficult.

Mutual fund: This is the least risky of the three investment options. It is highly liquid compared to buying a franchise or real estate. Mutual fund investors can easily cash in their investments by selling the units they hold in a fund at the current market price.

Real estate: Real estate is a risky investment. First, property prices can fall in a depressed housing market. Second, real estate properties are illiquid. They can’t be sold quickly for a good price, especially in times of recession in the housing market or in the overall economy.

A mutual fund is the best of the three investment options for me, for the following reasons:

I can invest small amounts of money regularly and get higher returns on the investment than I would from a savings account. Also, this is a highly liquid investment. In case of a financial emergency, I can quickly sell my mutual fund units at their current market price.

Real estate is currently both a risky and illiquid investment, because of poor market conditions.

Buying a franchise is not a good option for me, because I don’t plan to go into business. In any case, I don’t have the money to make this investment.

Explanation: PLATO

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It's the real thing. was the slogan for: wendy's, pepsi, coca cola?
Anni [7]
Wendy's is like a peach skin girl with red freckles, and ponytails that go sideways, and with blue bowties on the ponytails. Pepsi is a circle with a red semi circle, white stripe that is narrow, and blue as the rest, inside the circle. Coca cola is Coca in cursive, with the c's end as a line under that word, then cola in cursive, but the c's top is a line above the word. Hope it helps!
5 0
3 years ago
Debt is frequently incurred when plant assets are acquired. For example, debt may be incurred on the purchase of plant assets. D
S_A_V [24]

Answer: Expense capitalize

Explanation:

 The expense capitalize is the term which is used to refers to the capitalizing the given cost of the expenses based on their values for the purpose of evaluating all the expenses in the balance sheet.

The capitalize the expenses provide various types of benefits to the firms for obtaining the various types of updated assets that typically helps in providing the long term duration.

According to the given question, the interest in the given two cases is basically treat by expense capitalize for the purpose of financial reporting.

Therefore, Expense capitalize  is the correct answer.  

 

8 0
2 years ago
Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal wo
zzz [600]

Answer: FALSE

               

Explanation: In simple words, operating leverage refers to the criteria which shows how much operating income can be increase by increasing the revenue of a project. Whereas, financial leverage refers to the level of debt that a firm has acquired for financing its operations.

The management of a company can easily control financial leverage as it is in their hands to issue or redeem debt. On the other hand, increase or decrease in operating income is dependent on various external factor.

Hence the given statement is false.

7 0
2 years ago
A+piece+of+land+produces+an+income+that+grows+by+5%+per+annum. +if+the+first+year’s+income+is+$10,000,+what+is+the+value+of+the+
Aleonysh [2.5K]

If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

<h3>Present value of the land</h3>

Using this formula

Present value=Income/Rate per annum

Let plug in  the formula

Present value=$10,000/0.05

Present value=$200,000

Therefore If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

Learn more about Present value of land here:brainly.com/question/14958247

#SPJ12

6 0
1 year ago
Select an e-commerce company. Visit its website or mobile app and describe its business model based on the information you find
qwelly [4]

Explanation:

The e-commerce site visited was from Adidas, one of the largest sporting goods companies in the world. The value proposition that the company offers to the client is the creation of a marketing focused on the young and modern public, which can be seen on its website, where young models with a cool look use the brand's sneakers and clothing, always with a lot of youthful color and personality. The brand also creates value using influential marketing, sponsoring major celebrities and sports around the world, being a very strong brand and recognized for its values. The company has comparative advantages with competing companies in the sports segment, due to the fact that Adidas seeks a new look and refinement for its products, which can be seen in its collections where there are partnerships with several famous designers and personalities.

There is information about the company at the bottom of the page, which reveals about its multifaceted, simple and fast organizational structure, as written on the website, which reinforces the company's global values.

5 0
2 years ago
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