Answer:
D. only A and B of the above are true.
- A. the market is inefficient.
- B. an unexploited profit opportunity exists.
Explanation:
In simple words, this question is asking why the optimal return or best possible return of an investment is actually higher than the real market return. Generally this can be explained by opportunity costs and profits, or maybe even market inefficiencies caused by external factors (e.g. taxes).
In economics, efficient companies operating in competitive markets will always have 0 economic profit in the long run, that means that the company has maximized its accounting profits and there is no other alternative investment that can provide the same returns.
The same concept applies here, when you maximize your potential returns, it means that there is no other security or investment should yield the same returns. If your returns are actually, it only means that you are missing an opportunity profit (by investing in some other security) or some type of market inefficiency or external factor has decreased the actual return of your investment.
Answer:
The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.
Explanation:
Balanced sheet
A balance sheet is an annual report of finance that accounts at a particular time on the funds, debts or on equity of any corporation and lays the foundation of calculations for calculating return rates and determining its financial performance of the company.
The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.
Answer:
(1) NO As this maintenaince will be done in order to keep the current value It is an expenditure to avoid decay of the plant assets
(2) Yes it should be capitalizeds as increase the useful life of the assets (thus the depreciation will change as well as the useful years remaining increases
(3) Yes it should be. As increase the utility it will have a higher future positive cashflow in the future.
Explanation:
We are asked under which circumnstances the amont spend in the maintenance or overhaul should increase the plant asset account or be considered expense of the period.
Answer:
Business analysis
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.
Business analysis refers to a strategic process that typically involves a review of the sales, costs, and profit projections for a new product in order to find out whether the product is in tandem with the objectives of the company.
This ultimately implies that, many organizations and business owners use business analysis to measure the level of satisfaction with respect to the company's objectives and its customers through the process of analyzing or reviewing the sales, costs and profits projection of its new products before pushing them out into the market.
Similarly, cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Answer:
False
Explanation:
A sustaining innovation improves existing products. It does not create new markets or value markets, but develops existing ones with better value, allowing companies to compete against each other’s sustaining improvements. A sustaining innovation targets demanding, high-end customers with better performance than what was previously available. Some sustaining innovations are the incremental year-by-year improvements that all good companies grind out. Other sustaining innovations are breakthrough, leapfrog-beyond-the-competition products. It doesn’t matter how technologically difficult the innovation is, however: The established competitors almost always win the battles of sustaining technology. Because this strategy entails making a better product that they can sell for higher profit margins to their best customers, the established competitors have powerful motivations to fight sustaining battles. And they have the resources to win.
