I had to look up the term "bear market" because I was unaware of what it meant.
Bear Market = a market where prices are falling. This type of market encourages selling.
Answer: I think that because it stated in the problem stable companies were still affected, that means that Bellwether Company will be affected by the bear market falling prices. Therefore, I hypothesize that because the stock market it experiencing a bear market Bellwether's prices will continue to fall.
Did that make sense?
Answer:
at the end
Explanation:
Adjusting entries are made at the end of an accounting period after a trial balance is prepared to adjust the revenues and expenses for the period in which they occurred.
Answer:
b. Asset Turnover &
d. Profit margin.
Explanation:
Return on asset (ROA) simply shows a percentage of how profitable companies assets are in generating the revenue. It is calculated as:
However, if we further break it down, we can write it as follows:
Both formulas Represent the same things.
But, the ratio of Net income to Sales is known as the Profit margin- A degree to which company makes money. Here, we can see how the ROA can be broken down in terms of profit margin.
Also, the ratio of Sales to Total asset is know as the Asset Turnover- a measure of company's use assets in generating the sales.
Hence, we can say that the ROA can be dis aggregated to reveal the Asset Turnover and the Profit margin.
Answer:
C
Explanation: Government policies usually improve upon both equality and efficiency.
Answer: d. Inefficiently high quality of the good being sold.
Explanation: a binding price ceiling is the legal maximum that is imposed on a good when the market clearing price is above the ceiling price. This leads to a shortage of goods in the market. Since consumers do not get all they want the ongoing price, it leads to wasted time of the consumers looking for the good, inefficiently low transaction cost and inefficient allocation of goods to the consumers.
However, it does not lead to inefficiently high quality of the good being sold. As quality of good is not linked to the price ceiling.
