Answer: Option C
Explanation:
A. Bonds can be called at discount or premium depending upon the interest rate availing in market and the coupon interest rate.
B. In case of bearer bonds no transactions and ownership records are maintained.
C. Indenture is the contract between issuer and holder specifying the duties and obligations of issuer and the rights of holders.
D. Collateralized bonds are backed by a pool of assets while debentures are unsecured bonds .
E. A bondholder can have the right to determine it only when he have the put option with him otherwise the right to call bond lies with the issuer.
Answer: The correct answer is option B; Add D2 to the right of D, showing an increase in demand and increase in equilibrium price.
Explanation: The demand for a commodity is usually affected either positively or negatively by some factors or determinants. Foremost among the factors of demand is price of the commodity. Other factors include;
(a) Price of substitute commodities
(b) Consumers preferences
(c) Population
(d) Weather conditions
(e) Advertising
In the question above, the use of a popular actor as the spokesperson of the product is a form of advertising that is intended to improve upon the perception of the commodity and hence encourage consumers to buy more of it. If the popular personality endorses a product, there is an almost one hundred percent likelihood that consumers would see the product as a preferred choice and this would cause the demand to go up or increase.
An increase in the market demand would be signified by the outward shift of the demand curve to the right from D to D2. Since the x-axis shows the quantity demanded increasing towards the right hand side, then an increase in market demand would be reflected by a shift of the demand curve to the right.
As a result of that, the price would now move from P to P2 which shows an increase in equilibrium price. Also the quantity demanded would move from Q to Q2 which also indicates an increase in demand.
Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement
Explanation:
<u> when a licensing arrangement is structured in such a way that ir reduces the risks of a firm's technological know-how being expropriated by licensees, then licensing may be said to be appropiate.</u>
<u></u>
<u> For example </u>: when a firm perceives its technological advantage can be intimated by its competitor ,in such case the company gets its technology licensed before the imitation of its technology occur.By doing so the firm may deter its competitors from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments.
so we can say that Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement
Answer:
Potomac Corporation will realize $450,000 with the sale of the warehouse
Explanation:
To determine how much money Potomac Corporation realized with the sale of the warehouse we can use the following equation:
money realized = sales price of warehouse + mortgage assumed by buyer
money realized = $325,000 + $125,000 = $450,000
Answer:
B. <u>on that date</u>; <u>at some specified future date</u>
Explanation:
Spot rate refers to the exchange rate between two currencies prevailing as on that particular date when the exchange rates are inquired with a purpose to hedge the future risk owing to exchange rate fluctuations. For example,
1 CHF = USD 1.01
A forward rate on the other hand refers to the exchange rate provided today which would be applicable on a specified future date. For example, if a UK exporter visits his bank to know the 6 month forward rate to cover his export exposure.
Forward contracts are for the purpose of hedging or risk reduction which may arise in future on account of currency rate fluctuations.
