Answer:
Unsystematic risk
Explanation:
<em>The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.</em>
<em>According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.</em>
Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks
Answer:
Projects D and E should be purchased.
Explanation:
since the firm's capital structure is 60% debt and 40% equity, it can pursue up to 2 projects. Only projects D, E and F have an internal rate of return higher than the company's WACC, so project G is discarded immediately.
Since projects D and E have a higher IRR, they should be selected.
- project D: $70,000, IRR = 18%, debt = $42,000, equity = $28,000
- project E: $85,000, IRR = 15%, debt = $51,000, equity = $34,000
- total equity invested = $62,000
Answer:
<u>external report</u>
Explanation:
Note that, the manager prepared a report which he later presented to the stockholders of the company; meaning he gave the report to an outside party.
Remember, external reports are usually given to investors to know the financial condition of the company. Thus, the shareholders would need the report in order evaluate the financial condition of Fazer Technologies Inc.
Answer:
The correct answer is C
Explanation:
The seller consideration is the consideration which is defined as to take the property off the place as well as the market it into the escrow.
For example, if the buyer wants to bought the house, then the buyer will provide an earnest amount of money deposit (it will be the consideration of the buyer), and the seller would agree to sell the home to the buyer (it is the seller consideration).
So, in the agreement of sale and the purchase of the real estate, the seller consideration is to give the property to the buyer.
Answer:
ERP integrates different business functions, keeps track of customer information and could enhance future innovation process in an organization
Explanation:
ERP are a integrated software solutions designed for managing of company's resources and integration of all business functions, like planning, sales and distribution, finance and human resources. Transactional benefits include: tracking customer payments, information and data. Innovational advantages are: streamlining operations-it can be used for streamlining of processes through different departments; consolidating multiple data sources; providing information in real time and supporting future innovations
