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Andreyy89
4 years ago
15

An investor who purchases stock in a closely held corporation with a small number of outstanding shares should be MOST concerned

about which of the following types of risks?A. ReinvestmentB. RegulatoryC. Interest-rateD. Liquidity
Business
1 answer:
lilavasa [31]4 years ago
7 0

Answer:

D) Liquidity

Explanation:

A closely held corporation has a limited number of stockholders, that is why  their shares are not frequently traded. An advantage of purchasing shares from a publicly traded corporation is that they are traded on a daily basis, and if the investor needs to sell his/her shares, it can be done fairly quickly (they are a fairly liquid investment). On the other hand, since the shares of a closely held corporation are not frequently traded, even though they might be listed on a stock exchange, it may take much longer to sell them which makes them an illiquid investment.

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Weight Watchers is a weight-management company with operations in about 30 countries. Consumers buy almost $5 billion of Weight
VARVARA [1.3K]

Answer:

b. competitive advantage.

Explanation:

Competitive advantage -

It is the condition which allows the company or the country to produce services or goods of lower price but of equal level .

It enables the productivity to generate superior margins or more sales in comparison to its own market rivals .  

These are attributed to factors like the cost , branding , the distribution network , customer service , intellectual property and structure .

Hence , from the data of the question , the correct option is ( b ) .

8 0
3 years ago
Raymond owns an Accidental Death and Dismemberment Policy with a principal sum of $50,000, and a capital sum of $25,000. After o
schepotkina [342]

Answer:

He will get nothing from the Accidental Policy.

Explanation:

  • Raymond owns an Accidental policy but he Dies from Coronary artery disease. according to insurance companies policy, he will get nothing when he is dead by any means other than by accident.
  • Insurance companies have their own regulations and policy.
  • The insurance company is liable to pay for the incident for which the insurance is taken.

6 0
3 years ago
How is the value of a product determined?
yKpoI14uk [10]

Answer:

The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. ... The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position.

4 0
3 years ago
Read 2 more answers
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised a
Gala2k [10]

Answer:

$1,780,000

Explanation:

The computation of the initial cash flow for this building project is shown below:

= Estimated building cost + appraised cost of the lot

= $1,110,000 + $670,000

= $1,780,000

Simply we added the estimated building cost and the appraised cost of the lot so that the initial cash flow amount can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributi
arsen [322]

Answer:

$21000

Explanation:

To determine Gray’s tax basis  for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s  distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and  deduction items.

Gray’s beginning basis = $5,000  

Gray’s 50% distributive share of ordinary  income = 50% × $20000 = $10000

Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and  

portfolio income = 50% × $4000  = $2,000

Therefore, the ending basis of  Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000

6 0
3 years ago
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