Answer
<u>A bubble is a phenomena in investing that occurs when investors increase their demand in assets so much that they cause the price to move to a value beyond accurate reflection of its actual worthiness</u>. When a bubble happens, <u>the prices of stock will fall rapidly</u>.When there is increase in the share price of stock rapidly caused by individual-perpetuating, the share value can rise beyond asset value making investor to withdraw their money faster because <u>supply will exceed demand and cause share price to fall.</u>
An increase demand on assets by investors will make the price to increase beyond rational economic value. The real worth of the stock will now be determined by firm’s performance. Investing in bubble can appear to last forever, but because they are formed by self-perpetuated reasons, they eventually fall and the money that was invested into them is lost. In such cases, investors would run to withdraw their money and avoid the loss of fall in share prices.
Answer:
In 1890, Alfred Marshall's Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium. ... The prices of some goods can increase without reducing demand, which means their prices are inelastic.
Answer: Any previous years’ financial statements are retrospectively restated to reflect the correction.
Explanation:
If an accounting error that is material is discovered in a period after the period that the error was made, every financial statement that was affected will have to be restated so that the correction is reflected by them. This was the entries on the books will be more accurate.
For instance, if a material error that occurred in 2017 is discovered in 2020, then the '17, '18 and the '19 statements have to be corrected to reflect that there was an error that needed correcting.
Answer:
A) unlimited liability.
Explanation:
Sole proprietorships and partnerships offer several advantages, specially since the business themselves do not pay taxes, you are your own boss, they are easy to set up, etc., but their greatest disadvantage is that their owners are liable for all the debts and obligations of both sole proprietorships and partnerships. That means that if the business goes bankrupt, your creditors can go after your personal assets.
Answer:
b. decreased.
Explanation:
The price of silver increased by $1. The overall price increased by 5% = 1.05 × $30 = $31.50.
Therefore, the price of silver should be $31.50 but it is $31. This indicates that the real price of silver fell.
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