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tresset_1 [31]
3 years ago
10

Employees in the defense industry have greater job security and higher pay when the country is engaged in major military conflic

ts, therefore it is good for the country to be involved in military conflicts is an example of:
Business
1 answer:
kiruha [24]3 years ago
7 0

Answer: C the fallacy of composition.

Explanation:

The Fallacy of Composition is meant to explain the false logic that people apply when they believe that because something is true of a subsection of something, then that thing must be true for the whole thing.

For instance, my phone's batter is made of lithium so my entire phone must be made of lithium.

In this scenario, the logic is that it is good to be involved in military conflict because it favors the nation if it favors a subset (employees in defense) which is flawed because other industries might suffer. This however, represents the fallacy of composition.

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Sand, Inc. has outstanding $5,000,000, 10%, 20-year bonds. The bonds are callable at 104 on any interest date. The bonds were is
Ray Of Light [21]

Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.

Explanation:

The bonds were issued at Par. This means they were issued at 100 of par.

The bonds are now trading at 104 of par.

If Sand Inc calls the bonds then they will make a profit (loss) of,

= 5,000,000 * 104/100

= $5,200,000

Therefore their Profit (loss) will be the bond at par minus the Calling price

= 5,000,000 - 5,200,000

= -$200,000

That means they make a loss of $200,000 in the year the bonds are called.

If you need any clarification do react or comment.

6 0
3 years ago
Which of the following is a true statement about an auditor’s responsibility regarding consideration of fraud in a financial sta
Olegator [25]

Answer:

D. The auditor should assess the risks of material mis-statement due to fraud.

Explanation:

At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud

Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement

6 0
3 years ago
Martha was promised a 10% raise if she wins a contract with the city government. Martha could use the money to pay off some debt
Vlad1618 [11]

Answer:

The answer is expectancy.

Explanation:

Expectancy theory is a concept developed by Victor H. Vroom in 1964, where he postulated, that the strength an individual has in terms of his or her motivation to do an action, would appear when three components are satisfied to a certain value: expectancy, instrumentality, and valence. The question above is relevant to the expectancy component, which is detailed as the belief that an individual has regarding their efforts would result in the individual choosing to perform an action. In the case of Martha, she wasn’t sure that her efforts in trying to win the contract would lead to her 10% raise (outcome, a component of instrumentality), and thus, she decided not to try.  

3 0
3 years ago
Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $1
uysha [10]

Answer:

a). Accounting profits=$6,000

b). Economic profit=-$6,000

Explanation:

a). The accounting profits for Gomez's pottery firm can be expressed in the form;

Accounting profits-Total monetary revenue-Total monetary expenses

where;

Total monetary revenue=$86,000

Total monetary expenses=excludes opportunity cost=wages+rent+materials+equipment=(14,500+7,500+18,000+40,000)=$80,000

replacing;

Accounting profits=(86,000-80,000)=$6,000

Accounting profits=$6,000

b). Gomez's economic profit

Economic profit=Total revenue-total costs

where;

Total revenue=(86,000+5,000+6,000)=97,000

Total costs includes opportunity cost=(80,000+23,000)=103,000

replacing;

Economic profit=(97,000-103,000)=-$6,000

Economic profit=-$6,000

6 0
3 years ago
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be
Alex_Xolod [135]

Answer and Explanation:

The computation is shown below:

For nominal yield to maturity

Given that

NPER = 9 × 2 = 18

PMt = $1,000 ×14% ÷ 2 = $70

PV  = -$1,300

FV = $1,000

The formula is shown below:

= RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to maturity is 9.05%

For nominal yield to call

Given that

NPER = 6 × 2 = 18

PMt = $1,000 ×14% ÷ 2 = $70

PV  = -$1,300

FV = $1,060

The formula is shown below:

= RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to call is 8.34%

As the yield to maturity is more than the yield to call so the bond would be likely to called

3 0
3 years ago
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