Answer:
A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
The correct option is B.
Explanation:
A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.
Therefore, the correct option is B.
Answer: operating budget
Explanation:
In the given scenario in the question, we can deduce that the management is in the process of planning the operating budget of the company.
The operating budget simply refers to the money that's needed by the company for it to run efficiently. It is made up of the manufacturing costs, sales budget, selling expenses, and the administrative expenses.
Answer:
a. Structural unemployment
b. Seasonal unemployment
c. Cyclical unemployment
d. Seasonal unemployment
Explanation:
The unemployment George is involved in is structural because the perceived value and skills George possess is no more needed in the steel industry where he works and at Chicago land area where he moved to since there are now newer skills that could make work more efficient within the steel firms.
Leo in his case is battling with a seasonal unemployment as there are industries that operates in certain season(Time) of the year and not others. in January, when the winter is intense, construction work might not be feasible due to the high rate of snow fall in the period.
Kim suffered from a cyclical unemployment because there is a need to prioritize some things above the other due to the recession in the country. people will focus more on how to solve their immediate problem such as putting food on the table and clothe as well as housing, The need for the purchase of computers will drastically drop at this point in time.
Lastly, Becky, a recent graduate from college is also suffering from a seasonal unemployment because of the time she graduated from college.
Answer:
If a company must expand capacity to accept a special order, it is likely that there will be an increase in fixed costs.
Explanation:
The fixed costs are the part of the total costs of production that remain constant during a given reference quantity in a certain period. These include, for example, depreciation of fixed assets or rental or interest expenses. Since fixed costs are incurred regardless of the application quantity (short-term), they cannot be apportioned to the unit costs according to the cause.
In the present case, given that the company must expand its capacity to take the special order, it means that all of its production factors are totally devoted to production, so that in order to produce a greater quantity of goods, the productive factors must be increased, which are part of the fixed production costs that the company has. Therefore, as the costs of production are altered, there will be an increase in fixed costs.
Answer:
d. $55,340
Explanation:
You begin to receive the annuity at the end of the year 1, so its begin to capitalize on year 2 because the first year
there is no money to capitalize.
The second year begin to apply over the first annuity the interest payment,the next ten 10 years from 2 to 11 the deposits start to capitalize compounded anually at 9% of interest.
Compound interest, means that each time that the account generate interests, this total amount apply to the next period as basis to calculate the next interests, not only grows the interest payment over the initial capital if not over the past interest generated.
At the end of the 25 years you will have $55,340 in the account available.
$ 1,000 $ 1,090 2 Year
$ 1,000 $ 2,278 3 Year
$ 1,000 $ 3,573 4 Year
$ 1,000 $ 4,985 5 Year
$ 1,000 $ 6,523 6 Year
$ 1,000 $ 8,200 7 Year
$ 1,000 $ 10,028 8 Year
$ 1,000 $ 12,021 9 Year
$ 1,000 $ 14,193 10 Year
$ 1,000 $ 16,560 11 Year
$ 18,051 12 Year
$ 19,675 13 Year
$ 21,446 14 Year
$ 23,376 15 Year
$ 25,480 16 Year
$ 27,773 17 Year
$ 30,273 18 Year
$ 32,997 19 Year
$ 35,967 20 Year
$ 39,204 21 Year
$ 42,733 22 Year
$ 46,579 23 Year
$ 50,771 24 Year
$ 55,340 25 Year
