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Ede4ka [16]
3 years ago
6

Question 4 (20 marks)

Business
1 answer:
Darya [45]3 years ago
8 0

Answer:

Explanation:

(A) The pros of its actions are:

1. An exchange traded fund can give access to a group of market segments or sectors, which can be monitored or traced.

2. Exchange traded funds are of low cost.

3. An exchange traded fund comprises baskets of stocks and securities.

4. It gives exposure to various market styles and different classes of equities.

5. Exchange traded funds trade at a cost that is not static. A price that is updated all day long.

6. The Hong Kong government can trade options and futures, just like a stock.

(B) The major risks of buying exchange traded funds are:

1. The risks involved in trading

Since an exchange traded fund can be bought and sold like a stock, investment gain/return can be at risk. The costs of regular trading can exceed the benefit of purchasing exchange traded funds at low fees.

2. Taxation risk

Since exchange traded funds come with great tax efficiency, the risk of having to pay tax on your exchange traded fund is present.

3. Risks involved in portfolio

There are various specialty exchange traded funds. An individual or a country's portfolio is hereby susceptible to

- business risk

- liquidity risk

- political risk

- market risk, etcetera.

Each country fund the trader acquires, comes with its own liquidity and political risks because it's stability largely depends on the stability of the country's economy or political leadership!

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<span>Typically, a corporation is considered to be a unique and seperate entity from it's Board Directors and Shareholders. "Piercing the corporate veil" is the act of legally holding those Directors or Shareholders personally liable and responsible for the Corporation's actions or liabilities.</span>
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3 years ago
The following amounts were selected from the production report of Chandon Corporation: Actual units in production 42,000 Equival
SpyIntel [72]

Answer:

Total cost is equal to $81300

So option (c) will be correct answer.

Explanation:

Actual unit of production = 42000

Cost of per equivalent material = $1.10

Equivalent cost of material = =42000\times1.1=46200$

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Therefore total cost of production = $46200+$35100 = $81300

So total cost will be $81300

Therefore option (c) is the correct answer

5 0
3 years ago
On December 31, 20X4, Alan and Dave are partners with capital balances of $80,000 and $40,000, and they share profit and losses
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Answer:

$24,000

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Total partners capital = $80,000 + $40,000 + $36,000

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Now the total firm capital would be

= $36,000 ÷ 20%

= $180,000

Now the implied goodwill would be

= $180,000 - $156,000

= $24,000

3 0
3 years ago
Margaret is the new director of research at a well-known pharmaceutical company. She has been asked to design a set of research
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double - blind experiments.

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Double - blind experiment -  

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The experiment give rise to very accurate results , which is very important for any experiment .

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Answer:

d. preemptive right

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The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.

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3 years ago
Read 2 more answers
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