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arlik [135]
3 years ago
5

Which answer is not a cost to the investor that is included in the calculation of an investment's interest rate

Business
1 answer:
jeyben [28]3 years ago
4 0

Answer:

Risk of a bad investment

Explanation:

When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees , inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.

Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.

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Evaluating and rewarding managers based on absorption basis income can lead to overproduction. true or false
nikklg [1K]

Answer:

True

Explanation:

The absorption basis of income, profits are always high when the production is greater than income because more fixed costs will have been deferred in closing inventory.

So, managers will focus more on increasing production which create huge balances of closing stocks and consequently results in large profits.

5 0
3 years ago
A 3-year insurance policy costing $1,164 is taken out november 1, 1995. the property was sold on may 15, 1996, and the day of cl
Debora [2.8K]

To solve: If we assume there are 30 days in the month then the policy was held by the original owner from November 1st – May 15th which is 195 days. Assuming there are 30 days in the month there are 360 days in the year and that is equal to 1,080 for the insurance policy. If we divide the price of the policy, $1,164 by the amount of days the policy will be held for 1,080 then the policy is worth $1.08 a day. Next, take the amount of days the original owner held the policy and multiply it by the amount per day the policy costs (195)($1.08) = $210.60 Then, we need to subtract $210.60 from the full cost of the policy ($1,164 - $210.60) = $953.40 The buyer should pay the seller $953.40 at closing.

7 0
3 years ago
Many employment contracts have mandatory arbitration clauses.<br><br><br> False<br><br> True
tensa zangetsu [6.8K]
This answer is True
5 0
2 years ago
Organizations that rely on a few major customers may organize their people and resources by client. This is an example of ______
Rom4ik [11]

Any organization that organizes their people and resources by client because it relies on a few major customers shows an example of <u>customer departmentalization</u>.

<h3>What is departmentalization? </h3>

Departmentalization is an effort by an organization to achieve some common purpose, coordinate its effort, ensure division of labor, hierarchy of authority, and centralize/decentralize and formalize its operations.

There are four basic types of departmentalization (function, product, customer, and geography). Customer departmentalization depends on the difference between the customer segments so that specialized services could be offered to each segment.

Thus, such an organization is an example of <u>customer departmentalization</u>.

Learn more about departmentalization at brainly.com/question/25823018

6 0
2 years ago
The more illiquid something is the easier it is to turn into cash.<br><br> true or false?
k0ka [10]

Answer:

False

Explanation:

Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets. 

4 0
3 years ago
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