Answer:
The correct answer is option (b) Little capital
Explanation:
Solution
With a little capital this will help Lily to choose a sole proprietorship organization for her business. a sole proprietorship can begin with a little capital.
The option (a) is not correct as possession of a partner will not lead her to start a sole proprietorship business.
Also the option (c) is not correct the avoidance of personal liability is not the reason because in sole proprietorship, Lily will be liable for her debts.
Answer:
I, II, and III are all correct and part of this model
Explanation:
The CAPM model or Capital Asset Pricing Model indicates the relationship between the amount of risk and the expected profit for a certain investment. This model holds many assumptions, which from the ones provided we can say that assumptions I, II, and III are all correct and part of this model. The only assumption that is not correct is IV, since the level of risk aversion that each investor has depends on how much they know about their investment.
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Answer:
D.$24
Explanation:
Opportunity cost: The opportunity cost is that cost which gives the best alternative option
The computation of the total cost is shown below:
= Earning per hour + admission fee
= $15 per hour + $9
= $24
Since the question is asking for the total cost, so we consider both the costs i.e earning per hour and admission fee.
Answer:
Total value of the investment= $57,320.73
Explanation:
<u>First, we need to calculate the future value of the first part of the investment. We will calculate the future value for the monthly deposit for five years and then the lump sum for another five years.</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
i= 0.04/12= 0.003333
n= 5*12= 60 months
FV= {322*[(1.003333^60) - 1]} / 0.003333
FV= $21,348.05
<u>For the lump sum:</u>
FV= PV*(1+i)^n
n= 12*5= 60
i= 0.05/12= 0.004167
FV= 21,348.05*(1.004167^60)
FV= $27,397.75
<u>Now, the future value of the second part of the investment:</u>
<u></u>
n= 60
i= 0.0041667
A= 440
FV= {440*[(1.004167^60) - 1]} / 0.004167
FV= $29,922.98
Total value of the investment= 27,397.75 + 29,922.98
Total value of the investment= $57,320.73
