Answer:
B. Spreads the stockholder’s risks across a group of truly diverse businesses.
Explanation:
Diversification is a risk management strategy whereby there is a mix of a wide variety of investments in a portfolio. This limits the exposure to any single type of risk. For example, instead of investing in 3 different hotels in the tourism industry, investing in one hotel in the tourism industry, another business in the healthcare industry and another business in the education industry. That way, if any factor causes a drop in the tourism industry, only one investment would be affected negatively. There would still be profits from the healthcare and education industry. The positive performance of some investments will neutralize the negative performance of others.
The case filed by Gerwin against Baker will be null and void, as thee is no existence of any legal contract between the parties as such.
<h3>What is a legal contract?</h3>
A contract is said to be a legal one when the party who is presented with such an offer accepts on the terms and with a condition that the offer must be for legal activities.
In case when any of the criterion mentioned above are not followed by the offeror or the offeree, then in such case, any lawsuit filed against the plaintiff will be considered as null and void.
Hence, it can be concluded that there is no legal contract between Gerwin and Baker, and thus their cases are null and void.
Learn more about a legal contract here:
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Answer:
Letter c is correct. <u><em>Recession.</em></u>
Explanation:
A recession corresponds to a contraction in the economy over a period of time, there is a drop in production and consumption, rising unemployment, falling profitability, falling family income and others. It can be measured by levels of productivity, employment, consumption and other variables.
However, when there is a recession in a country, it is normal for spending to be cut, including a reduction in the marketing budget, because the period is not favorable for consumption, so companies cut spending in various areas because there is a risk of falling revenues.
Although recession marketing is common, studies show that companies that maintain or increase advertising ensure increased sales and participation during and after the recession. This can occur for a variety of reasons, as brands can provide consumers with an image of stability in the midst of crisis, which improves brand reliability. There is also a decrease in advertising costs, and the possibility of the company winning market, because it is important that the company has an active voice in making ads regardless of the economic situation.
Answer:
The amount of Bad Debt Expense reported in 2019 was $16,100.
Explanation:
Our concern is mainly on the allowance for doubtful accounts. Based on the facts given in the question, the opening balance of the allowance account was $79,900 credit balance, while the closing balance was $96,000 credit. Since there were no write-offs or recoveries during 2019, the bad debt expense is simply the difference between the closing balance and the opening balance i.e, $96,000 - $79,900 = $16,100.
The journal entries will be:
Debit Bad debt expense $16,100
Credit Allowance for doubtful account $16,100
<em>(To record the bad debt expense for 2019) </em>
The determinant of demand is the Number of buyers. The number of buyers is one of five request determinants that move the request bend when they change. The other four are purchasers' salary, purchasers' inclinations, different costs, and purchasers' desires. The quantity of purchasers willing and ready to purchase a decent influences the general request.
