Answer: qualitative
Explanation:
Risk assessment is used in identifying hazards which are likely to result in harm and then determining the appropriate methods to remove such hazard or curtail it.
The type of risk assessment uses descriptive categories to express asset criticality, risk exposure (likelihood), and risk impact is the qualitative risk assessment.
Option D, Both A & C
Explanation:
A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit from $2 to $1.85 . Later, a manager has an opportunity to outsource production to another company at a cost per unit of $1.75 . If you are the manager, you should consider the $400,000 as a sunk cost, not relevant to the decision and should ignore the $400,000 fixed cost.
Sunk cost is the cost which is already incurred in past and does not have any significance in decision making.
A sunk cost is already incurred in the fields of economy and business decision-making and can not be recovered. Sunk costs are contrasted with future costs, which can be avoided if measures are taken.
Answer:
a. Is JV a variable interest entity (VIE)?
Yes, JV should be considered a variable interest entity. Basically both AutoCo and ElectricCo share JV's board, but ElectricCo didn't have the money to start a company or even be part of a joint venture. ElectricCo's equity is financed by AutoCo, so ElectricCo has basically no no equity at risk. Even the debt acquired by JV is backed by AutoCo, but AutoCo does not control JV on its own.
Basically ElectricCo's contribution is technology, and AutoCo provides everything else, but both control the company with one side (ElectricCo) not having enough money to invest but doing so through financing.
b. Which entity, if any, should consolidate JV?
AutoCo must include JV in its consolidated balance sheet since it owns 60% of the company and the products manufactured by JV are sold under AutoCo's brand.
Answer:
Bond Price = $875.6574005 rounded off to $875.66
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1,000 * 0.05 = $50
Total periods (n) = 3
r or YTM = 0.10
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.10)^-3) / 0.10] + 1000 / (1+0.10)^3
Bond Price = $875.6574005 rounded off to $875.66
Answer:
Tbh if I could stop the time
I would do anything to get the time back to normal since it will probably be boring doing it yourself with no help if you know what I mean :)
Explanation:
Hoped this helped :)
