All categories

3 years ago

Explain the reasons why risk management might increase the value of a corporation?

Business

1 answer:

vlada-n [284]3 years ago

7 0

Explanation:

Risk management is to increase a firm ’s profitability;

(1) Raise all use of borrowing by them.

(2) Preserve their optimum budget for resources in accordance.

(3) Reduce potential distress-related expenses.

(4) Make use of their comparable liquidity advantages compared to the individual's liquidity capacity.

You might be interested in

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Eq

o-na [289]

Answer:

The correct answer is C. 3240 units.

Explanation:

The calculation of Equivalent units of production for the year is given below.

Add

Begining inventory = 60% * 200 = 120 units

completed in this period

Units put in process = 3200 units

Less

Un-complete closing = 20% * 400 = (80 units)

stock

Equivalent units = 3240

3 0

3 years ago

Minor company installs a machine in its factory at the beginning of the year at a cost of $135,000. the machine's useful life is

sveticcg [70]

To determine what the depreciation of an asset using straight line method, the formula to be used is:

(Initial cost of machine – salvage value) divided by estimated useful life

So in this problem:

Initial Cost - $135000

Salvage Value – $15000

Estimated Useful Life – 5 years

Plug that in the formula

Annual depreciation = ($135000 - $15000) / 5

= $120000/ 5

= $24,000

The first year depreciation for the machine is $24000 because the company bought it in the beginning of the year. (So there is no need to divide this by 12 months)

To record this:

Depreciation Expense $24000

<span> Accumulated Depreciation $24000</span>

3 0

3 years ago

Some countries have high minimum wages and require a lengthy and costly process to get permission to open a business Select one:

Pani-rosa [81]

Answer:

b. Reducing the minimum wage and the time and cost to open a business would shift the long-run aggregate supply curve to the right

Explanation:

Minimum wage is a wage set by the government, to pay for laborers. Wages below this is illegal. Wages are also a major cost to any firm. When they have been reduced, cost of production is likely to fall. Cost of production is a factor affecting supply. When cost of production falls, supply shifts right.

This is explained as that when cost of production falls, businesses can now make higher profits. This acts as a motivation for many other firms to also enter into the market. Therefore, supply is likely to rise in the long-run, shifting the supply curve to the right.

Time and cost to open a business is another factor affecting supply. When the time and cost is high, it discourages new firms because they do not want to undergo the hassle of submitting many legal documents or may not have enough funds to pay for all the costs. However, when the cost and time taken falls, more firms will be willing and able to enter into the market. Thus, the supply curve shifts right in the long run, increasing quantity supplied.

6 0

3 years ago

You just won $30,000 and deposited your winnings into an account that pays 3.9 percent interest, compounded annually. how long w

ruslelena [56]

For this case we have an equation of the form:
$y = A * (b) ^ x
$
Where,
A: initial amount
b: growth rate
x: number of years
Substituting values we have:
$y = 30000 * (1,039) ^ x
$
By the time the earnings increase to 75000 we have:
$75000 = 30000 * (1,039) ^ x
$
From here, we clear x:
$(1,039) ^ x = (75000/30000)

log1.039 ((1.039) ^ x) = log1.039 ((75000/30000))

$
$x = log1.039 ((75000/30000))

x = 23.95 years$
Answer:
you will have to wait until 23.95 years your winnings are worth $ 75,000

7 0

4 years ago

The Campus Crustacean Company receives $2 per box for its crawfish and is selling 1,600 boxes to maximize its profits. What is t

erik [133]

Answer:

Profit per box of crawfish $0.25

Explanation:

To calculate the Total profit, we can solve the expression;

Total profit=Total selling price-Total purchase price

where;

Total purchase price=(Variable cost per box×number of boxes purchased)+Total fixed costs

Total purchase price=(1×1600)+1,200=$2,800

Total selling price=Selling price per box×number of boxes

Total selling price=(2×1600)=$3,200

replacing in the expression;

Total profit=Total selling price-Total purchase price

Total profit=($3,200-$2,800)=$400

Total profit=$400

To calculate the profit per box;

Total profit=profit per box(p)×number of boxes sold

400=p××1600

p=400/1600=0.25

Profit per box=p=$0.25 per box

7 0

3 years ago