Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.
Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.
the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.
Answer:
The correct answer will be Option A (unlimited).
Explanation:
- The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited.
- Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.
Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.
Answer:
Long term liability
Explanation:
Long term liability is defined as the amount of money a business owes that is due above a year. It is liabilities that do not affect the current liquidity of the business and its ability to do business.
In this scenario Chestelle Corporation has borrowed a large amount of money that is due in 4 years. It is due in over a year so it is a long term liability.
Long term liabilities are usually used to purchase capital assets or to make long term investment
It effects how money is moved around the united states. They will hire more companies, such as contractors. Those contractors will hire other companies to do said work, they companies will hire workers. However it creates more jobs, and more government spending.
