Answer:
B) (I) is false, (II) true.
Explanation:
The interest rate of longer-term securities is usually higher than the interest rate of short-term securities because more risk is associated with the longer-term securities. An example of the risks associated with long-term securities is that it possible for inflation to make value of the payment to fall. Another risk is when there is a rise in the interest rate which usually lead to a fall in the bond prices.
Treasury STRIPS refers to bonds that are offered for sale at a discount to their face value. Their major attribute is that they do not pay interest to investors but the full face value of the bonds is paid to the investor when the bonds mature. This means the bonds mature at par.
The full meaning of STRIPS is Separate Trading of Registered Interest and Principal of Securities, and they are types of bonds that are commonly referred to as zero-coupon bonds because no interest or coupon is paid by them.
From the above, we can see that (B) is the correct option in the question. That is, (I) is false, (II) true.
Answer:
The correct answer is letter "A": scenario building.
Explanation:
Scenario building refers to the efforts companies make to scheme adverse situations that could arise in the future and link the consequences of those events with the way it could affect the operations of the firm. Scenario building is part of the strategic planning of the company.
Organizations cannot predict exactly what will happen in the future but they can set contingency plans to be ready in front of different situations that could arise.
Answer:
$1,242,000
Explanation:
The new machine is to be recorded at its Fair Value which is $1,242,000 because the exchange has a commercial substance. Asset forgone is credited by its original cost, and accumulated depreciation till date of exchange is debited. Cash paid and loss or gain is adjusted as required. But the new asset is debited by the amount of its Fair Value on the day of exchange.
Answer:
Make research easy and entice new prospects by posting everything online.
Don't shock or overload stakeholders – drip feed information.
Plan for growth, achieve big goals.
Connect people and encourage conversations for bigger investments.
