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3 years ago

Which of the following statements accurately describe the phases of a business cycle? Check all that apply.

Business

1 answer:

sattari [20]3 years ago

3 0

Answer:

Which of the following statements accurately describe the phases of a business cycle? Check all that apply.

a. A contraction phase is when an economy exhibits decreasing levels of production and consumption.

c. A trough occurs at the end Of the contraction phase and the beginning of the expansion phase.

d. A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase.

A contraction period is characterized by the following attributes: businesses that are operating lower productive capacity, HIGH unemployment, low retail sales, LOWER prices and interest rates, a declining stock market, and expectations of LOWER business profits.

Contraction periods tend to end with a TROUGH, while expansion periods tend to end with a PEAK.

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On August 1 of the current year, Jamie Simmons received $5,400 for legal services to be performed evenly throughout the next six

Zepler [3.9K]

Answer:

$900 is the correct answer

Explanation:

The reason is that according to the accrual basis the earnings must be realized when they are earned. In the question it is clearly stated that the earnings per month are $900 ($5400/6months). As services for the five months are delivered and the remainder left is of only one month. So the earnings that will be realized in the accounting books will be:

Dr Unearned Revenue $4500

Cr Revenue Earned $4500

Furthermore, the amount left in the unearned revenue account will be $900 ($5400-$4500).

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3 years ago

You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays n

Ivenika [448]

Answer:

The value of the call option today is $14.29

Explanation:

The two-state stock pricing model is one that prices are based on the assumption that there is no arbitrage profit opportunity as well as the fact that the call option's value will be the present value(PV) of the expected future winnings for long call.

Now, value of the call option if the prices go up will be;

142 - 109 = $32

While if the prices go down, it will be;

76 - 109 = -$33

The call option in this case can only be utilized when the market value exceeds the exercise price.

Therefore, the expected winnings value after one year will be;

Value after one year = (32 × 0.5) + (0 × 0.5)

Value after one year = $16

We used 0 in the multiplication because the call wouldn't be utilized for when the prices go down.

one year from now the long call can be expected to earn $16 .

Thus, today the present value of this amount will be the price of the call option if we take into cognizance that here will be no arbitrage profit opportunity.

With risk-free rate of interest is 12%, we have;

PV = 16/1.12 = $14.29

3 0

3 years ago

Reading out loud is an effective strategy for proofreading a written work. Please select the best answer from the choices provid

tatyana61 [14]

Answer:

the answer would be true! :)

Explanation:

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3 years ago

Consider an individual who serves on the board of a bank and also sits on the board of a computer manufacturing company that bor

Elan Coil [88]

Answer:

<u>Interlocking corporate director</u>

Explanation:

Interlocking corporate director refers to an individual serving as a director on the board of multiple companies.

Interlocking directorship is not considered illegal if the companies of which the same individual serves as a director, are not competing firms.

In the given case, an individual serves on the board of a bank, also serves the board of a computer manufacturing company that usually borrows from the bank.

Here, the independence and objectivity of the director would be impaired and this may lead to a situation of conflict of interests as the director exercises sizable influence in framing the lending policies of the bank.

Thus, such a situation would be in violation and the director may have to step down from the board of one of the companies.

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4 years ago

Since the 2008 global financial crisis, the B/L ("bill of lading") of container shipments from Asian factories to the United Sta

Naddika [18.5K]

Answer:

BOL can be viewed as the authoritative record that is being given to a shipment organization by the transporter that incorporates the different insights regarding the item. The fundamental purpose behind the BOL to be gathered at the entryway ports is that these BOL are gotten at the port first as this is where the items are gotten in the nation and from that point these items are sent to inland RDCs. The items need to pay the traditions obligations and pass the various customs.

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4 years ago