Answer:
Arrange the investments in order from the highest risk and return potential to the lowest risk and return potential:
A. property
B. bonds
C. starting a business
D. mutual funds
Solution:
C. starting a business
A. property
D. mutual funds
B. bonds
Explanation:
Investments are the exchanges of income during one period for assets that are expected to earn income in future periods. It is the act of committing capital now in order to obtain future earnings. The risk and return calibration depends on one's personal circumstances and risk appetite.
Some investments offer higher returns with great growth potentials and higher risks while others offer lower returns with lower risks.
Starting a business has the highest risk and return potential. The risk is that you may not realise any return. However, if you are successful in the business, you can get the highest return ever.
Property investments either by building new property, buying built property, or investing in property investment fund may also yield so much returns but the risks are higher than other investments in this class. There is no guarantee that prices of property will not fall so dramatically that you sustain big losses. There is always need to insure your property against disasters like fire.
Mutual funds are professionally managed funds whereby money is pooled from different investors in order to buy stocks, bonds, etc. with long-term horizon. It has higher risk profile than investing in bonds as an individual, because you could recoup some returns in bonds as interests are paid periodically.
Bonds are debt securities to a government or business with the promise of repayment and period interests. They are generally risk-free investments with lower returns because of the guaranteed repayment.
<span>The different schools (beliefs) of decision making are :
</span>utlitarian decision making- ethical decision are primary
right decision making - everyone involved should be granted the same rights
fairness and justice decsion making - th
common good decision making - individuals as part of a larger community.
virtue decision making - <span>honesty, generosity and knowledge are the most important parts of the decision making process</span>
Answer:
1.
Date Account title Debit Credit
Dec. 31 Investment in Tran Corp. $210,000
Investment Income $210,000
Working:
Herrera owns 280,000 out of 800,000 Tran Corp shares so they will recognize:
= 280,000/800,000 * 600,000
= $210,000 of Tran Corp. net income.
2.
Date Account title Debit Credit
Dec. 31 Cash $140,000
Investment in Tran Corp. $140,000
Working
Cash received as dividend = 0.5 * 280,000 share
= $140,000
Atlantic Coffee has recently decided to raise its prices by10%. It was shocked by its customers' reaction to the price increase when sales dropped24%. such a sharp drop in sales occurs because:_the demand for a specific brand of coffee is highly elastic.
The market fee is the modern rate at which an excellent service can be purchased or sold. The market price charge of an asset or carrier is decided with the aid of the forces of delivering and calling for; the fee at which the amount provided equals the amount demanded is the marketplace rate.
The primary price is the amount receivable through the manufacturer from the customer for a unit of an amazing or provider produced as output minus any tax payable, and plus any subsidy receivable, by means of the producer as a result of its manufacturing or sale.
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Answer: 5
According to the matching hypothesis, people become attracted to people equally socially desirable( usually physical) and are more likely to succeed in a
committed relationship. Other couples that have a successful relationship but have differing physical attractiveness, may be together
due to other variables that compensate their difference in
attractiveness.
