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3 years ago

What is the relationship between risk and return?

Business

1 answer:

PolarNik [594]3 years ago

8 0

Answer: A higher risk often means a higher return.

Explanation: Risk can be defined as the potential effect of an event, determined by combining the likelihood of the event occurring with the effect that it should occur.

Return can be defined as a gain or loss from an investment.

The relationship between risk and return is that the higher the risk, the higher the returns, however, a higher risk has a potential for loss. Hence, the word often in the statement "A higher risk often means a higher return."

A lower risk does not always mean a lower return, a lower risk has a potential for a higher return.

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A company offering local telecommunications service combines resources with an international company that manufactures digital s

neonofarm [45]

Answer:

A. joint diversification.

Explanation: Diversification by method of Joint Ventures, is a

Good way to diversify when it is

Uneconomical ( not economical from a single partner point of view) and risky to venture into it alone, the Puling power and competency of the two partners would provides more competitive strength and advantage. Foreign partners are needed for this kind of business ventures.

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3 years ago

Read 2 more answers

_____ are more important in situations where the sales cycle is long and sales are few because what a salesperson does can be ob

Neporo4naja [7]

Answer:

Activity quotas

Explanation:

An activity quota is a minimum level of sales-oriented actions that must be met by a salesperson during a given time period. An activity quota may require a salesperson to make a certain number of outbound calls, send a certain number of emails to potential clients, or submit a certain number of statements of work. An activity quota measures a single task that a salesperson completes to help generate sales; it doesn’t measure actual sales volume or output.

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3 years ago

Goodman Company borrowed $100,000 cash on September 1, 2014, and signed a one-year 12%, interest-bearing note payable. The requi

MA_775_DIABLO [31]

Answer:

The required adjusting entry at the end of the accounting period is : A) Interest expense 4,000 Interest payable 4,000

Explanation:

Interest is Accrued from September 1 ,2004 to December 31, 2014 in the 2014 accounting period. Thus we a period of over 4 months out of the 12 months in a year.

Considering the Matching or Accrual Principle Interest will only be considered for these 4 months only (Revenues and Expenses must be recorded in the period in which they Accrue or Incur)

Calculation of the Interest expense and the Interest Payable is :

=$100,000 × 12% × 4/12

=$ 4,000

8 0

3 years ago

Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000

Ainat [17]

Answer:

$21,000

Explanation:

Economic profit = accounting profit - implicit cost

Accounting profit= total revenue - explicit cost

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost includes salary lost due to opening the shop and interest that could have been earned on the savings

Total explicit cost = $80,000 + $40,000 + $15,000 = $135,000

Accounting profit = $200,000 - $135,000 = $65,000

Economic profit = $65,000 - ($40,000 + $4,000) = $21,000

7 0

3 years ago

Presentment warranties protect the person who presents an instrument for payment.

arsen [322]

That statement is true
<span>presentment warranty represent the implied promise that by a payer to</span>upon the presentment<span> of the instrument for payment.
</span>If the drawee later accepted the draft that being made, The accepted will makes payment according to what presented in the draft.

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4 years ago