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alexandr402 [8]
3 years ago
8

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve

stors face?
The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.
Business
2 answers:
Fiesta28 [93]3 years ago
7 0

Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.

However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.

shutvik [7]3 years ago
3 0

The answer is: The issuer could go bankrupt.

When investors buy a bond, they basically enter an agreement where the bond issuer become indebted and agree to payback the amount of money they invested plus interest rates.

The thing is, the full value of bond can only fully paid back along with the interest after it reach maturity dates. If the issuer go bankrupt before the bond reaching its maturity, the issuer would be freed of all debts including the debts to the investors of the bond.

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The process of choosing among different alternative investments due to limited resources is referred to as
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Answer:

B. Capital Rationing

Explanation:

Capital rationing is a technique used by organizations and companies whereby restrictions are placed on the projects that the organization or company can undertake or limitations on the capital that can be invested by the organization or company. This limitations are placed because the organization or company aim is directed at choosing only the most profitable investment for capital investment decision or carrying out only the most profitable projects. It involves choosing amongst alternative investment.

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4 years ago
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3 years ago
GAAP require state and local governments to include in their annual financial reports a budget-to-actual comparison showing actu
Elden [556K]

Answer:

The advantages of requiring both the original and final appropriated budget amounts are:

1. It enables comparison of original (static) budget with the final (flexible) budget.

2. From the comparison, management assesses performances based on actual performance versus original and final budgets respectively.

3. The significant changes based on the level of activity are easily determined.

Explanation:

The use of original and final budgets helps in the comparison with actual performance.  It clearly shows the effect of the level of activity on budget performance.

6 0
3 years ago
In 2019, Sayer, who is single, have an outright gift of $53,000 to a friend, Johnson, who needed the money to pay medical expens
AlekseyPX

Answer:

$53,000

Explanation:

Remember, Johnson, needed the money to pay medical expenses. It is important to note that even though any gift is a taxable gift, there are many exceptions to the tax rule. One such gift that is not taxable is; Medical expenses you pay for someone.

In filing the 2019 gift tax return Sayer would by entitled to an exclusion of $53,000.

6 0
4 years ago
If disposable income increases from $912 billion to $1092 billion and Savings increased by $180, then the consumption will incre
vodka [1.7K]

Answer: $0 billion

Explanation:

Money spent for consumption is the difference between Disposable income and Savings.

Disposable income increase:

= 1,092 - 912

= $180 billion

Savings increased by $180 billion which is equal to the change in Disposable income.

Change in consumption = Change in disposable income - change in savings

= 180 - 180

= $0 billion

4 0
3 years ago
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