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3 years ago

What is a negative outcome of E-commerce? E-commerce allows convenient methods to pay online. However, there is a risk of ____ .

1 answer:

3 0

The negative impacts of E-commerce includes privacy, security,price wars, returns of products and Complaints. E-commerce allows convenient methods to pay online. However, there is a risk of Security.

Explanation:

There are many negative impacts of E-commerce although it is a easier way of buying and selling items. Some of the negative impacts of E-commerce includes privacy, security,price wars, returns of products and Complaints. It will be very easy to gather private information about any person who uses an E-commerce website.

Al though the payment process in E-commerce website is more easier and convenient there are also many risks associated with this. There wont be any knowledge of whether the proper authenticated user is making the payment. There are also many risk of taking the account related details when there is no adequate presence of security measures in the websites where online transactions are made.

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The current price of the common stock of Internet Enterprises is $100. Over the course of a year, the stock's price will either

KATRIN_1 [288]

Answer:

Current value of this newly issued option on Internet Enterprises= $25

Explanation:

Risk free rate for 6 month or period 1= (1000-909.09)/909.09=10%

Risk free rate for 1 year= (1000-826.45)/826.45=21%

Hence, risk free rate for period 2= (1+21%)/(1+10%)-1=10%

Now, Risk free rate factor for period 1 (R1)=1+10%=1.1

Risk Free rate factor for period 2 (R2)=1+10%=1.1

Upward price factor for a period(u)=(1+100%)^(1/2)=1.414

Downward price factor for a period(d)=(1-50%)^(1/2)=0.707

Probability of upward price= (R-d)/(u-d)=(1.1-0.707)/(1.414-0.707)=0.55

Probability of downward price= 1-0.55=0.45

After period 1: Upward price=100*1.414=141.4 with probability 55%

Downward price =100*0.707=70.7 with probability 45%

After period 2:

Upward Price will be =141.4*1.414=200 with probability= 55%*55%=30.25%

Downward price will be=70.7*0.707=50 with probability=45%*45%=20.25%

Mid price will be = 141.4*0.707 or 70.7*1.414=100 with probability =2*45%*55%=49.5%

Now, the highest price the stock can go is $200 with probability 30.25% and it was issued at $100

Hence, expected payoff of the option=30.25%*(200-100)=$30.25

So, current value of the newly issued option= 30.25/(1+21%)=$25

4 0

3 years ago

On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depre

grandymaker [24]

Answer:

Annual depreciation (year 2)= $20,000

Explanation:

Giving the following information:

Purchase price= $115,000

Salvage value= $15,000

Useful life= 5 years

To calculate the annual depreciation under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (115,000 - 15,000) / 5

Annual depreciation= $20,000

5 0

3 years ago

Clarissa want to fund a growing perpetuity that will pay $5000 per year to a local museum starting next year. she wants the annu

Akimi4 [234]

Answer:

Clarissa needs to fund the growing perpetuity by $166666.67

Explanation:

A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:

Pv = C/(i-g)

where Pv is the present value of the perpetuity which will be the initial investment.

C is the periodic payments that will be received in future in this case $5000

i is the interest rate given for the perpetuity which is 8%

g is the growth rate per fixed period which is 5%

thereafter we substitute on the above mentioned formula:

Pv= $5000/(8%-5%) then compute

Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.

3 0

3 years ago

Demonstrate how workplace discrimination undermines organizational effectiveness.

snow_lady [41]

Answer:

Workplace discrimination prevents the firm from using the full potential of those employees that are being discriminated against.

Explanation:

For example, if the firm discriminates against a specific group of people when hiring (for example, it can discriminate against older people), the firm could lose valuable potential employees that could have provided great skill and experience for the firm.

If the firm practices discrimination against employees, the operation in the company will not be as streamlined as it could be against discrimination because those who are being treated poorly will be less motivated and have lesser output.

6 0

3 years ago

Setterstrom Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1

topjm [15]

Answer:

Following are the journal entries for Setterstrom Company;

May 01

Debit: Petty cash = $100.00

Credit: Cash = $100.00

Jun 01

Debit: Delivery Expense = $31.25

Debit: Postage Expense = $39.00

Debit: Miscellaneous Expense = $25.00

Debit: Cash over/short (Balance amount) = $3.00

Credit: Petty Cash ($100 - $1.75) = $98.25

Jul 01

Debit: Delivery expense = $21.00

Debit: Entertainment expense = $51.00

Debit: Miscellaneous expense = $24.75

Credit: Petty Cash ($100 - $3.25) = $96.75

Jul 10

Debit: Petty cash = $30.00

Credit: Cash = $30.00

8 0

3 years ago