Answer:
Special Skills Qualification (most likely)
Explanation:
There are many different things it could stand for, however since you did not specify the context of this, I am assuming it would be this as it is most common.
The correct answer is A) Yes, meets all assumptions.
Dozens of companies produce plain white socks. Consumers regard plain white socks as standardized and don't care who manufactures their socks: Yes, meets all assumptions.
What we are trying to do here is to define if the affirmation is about a competitive market. And the answer is yes, it meets all assumptions. The socks market is a competitive market because it has a large number of buyers and sellers that is not as big if compared to the size of the total market. The socks matter is offering barely the same product to customers. There is no differentiation at all. And in this case, companies can enter or leave the market whenever they want.
Answer:
$192,500
Explanation:
budgeted net income statement
Net sales $750,000
<u>COGS ($300,000) </u>
Gross profit $450,000
Selling expenses ($83,000)
<u>Adm. expenses ($92,000) </u>
EBIT $275,000
<u>Income taxes ($82,500) </u>
Net income $192,500
Expected rate of return Probabilities
Booming 22% 5%
Normal 15% 92%
Recession 2% 3%
The expected rate of return on this stock is solved by multiply each expected rate of return to its corresponding probability and getting the sum of all products.
Booming: 0.22 x 0.05 = 0.011
Normal: 0.15 x 0.92 = 0.138
Recession 0.02 x 0.03 =<u> 0.0006</u>
Sum total 0.1496 or 14.96% is the expected rate of return on this stock
