A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
<h3>What is a hedge fund?</h3>
It should be noted that the hedge fund simply means a pooled investment fund which trades in liquid assets. This is usually managed by the professional fund managers.
Therefore, a hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
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Answer: Option a
Explanation: In simple words, preferred shareholders refers to the holders of preference shares of an organisation. Unlike common stock, preferred stock are the securities on which the holders receives a fixed amount of payment but only if the occupancy have appropriate amount of profits to distribute.
Preference shareholders have the right to get paid before equity shareholders but after the debenture holders and their returns are usually higher than debt holders but smaller than equity holders.
Therefore, due to being less risky than equity holders these shareholders do not get any voting rights in the company as equity shareholders.
Political Maps - do not display bodily features. as an alternative, they display nation and countrywide barriers and capital and most important towns. bodily Maps - illustrate the bodily features of a place, consisting of the mountains, rivers, and lakes. Topographic Maps - encompass contour strains to expose the shape and elevation of a place. There are 44 countries in Europe today, according to the United Nations.
Political maps are most usually flat and denote the united states of America's borders in vibrant colors to assist perceive the edges of nations. The definition of a political map shows the authority's borders for nations, states, and counties, in addition to the vicinity of capitals and foremost towns.
Political maps are most customarily flat and denote the use of borders in vivid colors to help perceive the edges of countries. The definition of a political map indicates the government borders for international locations, states, and counties, in addition to the area of capitals and main cities.
Political Maps - do not display bodily features. as an alternative, they display nation and countrywide barriers and capital and most important towns. bodily Maps - illustrate the bodily features of a place, consisting of the mountains, rivers, and lakes. Topographic Maps - encompass contour strains to expose the shape and elevation of a place.
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Answer: The correct answers are 1). B. Segregation of duties
2).A. Establishment of responsibility 3). C. Physical control devices
4). B. Segregation of duties 5). D. Documentation procedures 6). E. Independent internal verification 7). F. Human resource controls
Explanation: Internal controls is a system that promotes effectiveness and efficiency, reduces risks of asset loss, ensures the reliability of financial statements and compliance with laws and regulations.
Internal control principles include; Segregation of duties; Establishment of responsibility; Physical control devices; Segregation of duties; Documentation procedures; Independent internal verification and Human resource controls.
Answer:
d. corporation
Explanation:
A corporation raises its capital by issue of stocks and Stockholders that subscribe for these shares will in turn receive their return in form of dividends.
Partnerships, government entities and sole proprietorship do not raise capital by issuance of stocks.