Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
<h3>
What is the return on investment?</h3>
- A ratio between net income and investment is known as return on investment or return on costs.
- A high ROI indicates that the returns on the investment outweigh the costs.
- ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
- The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
- It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
- Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
- Anything that has the potential to provide positive economic value qualifies.
- The ownership value that can be turned into cash is represented by assets.
Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
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Answer: $7,500
Explanation:
Cost allocation base is Cubic feet which is 100,000 ft³.
Department A has 15,000 ft³ of the 100,000 ft³.
Depreciation is $50,000
Depreciation for Department A is therefore;
= (15,000/100,000) * 50,000
= $7,500
<span>The point of the long-run aggregate supply curve.
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Answer:
Bondholders have a degree of legal protection against default risk, but it is not comprehensive.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.
Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.
Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.
Answer:
FOR LIFE INSURANCE DENSITY
