Based on the information given, it can be deduced that Trade Winds Corp. has a closed shop arrangement.
A closed shop arrangement simply means a place of work where all the employees gave to belong to an agreed trade union.
Under this condition, an employer will only employ the people that are to be part of the trade union. Therefore, it can be seen that Trade Winds Corp. has a closed shop arrangement.
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Answer:
a. net income= understated, retained earnings= understated
Explanation:
In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>
Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.
Answer:
a. investment risk
Explanation:
Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".
Investment risk: We can define it as the inappropriateness between the actual and expected returns. Because on this type of risk, there may be occurrence of any losses with some probability or likelihood which will be relative the expected return.
Asset class is about the grouping process of investments which have some mutual or similar characteristics. The risk on this case is something has relative elasticity compared to another investment in the market. Usually, there is 3 groups of asset classes: equities, bonds and money market instruments.
The market risk which is called sometimes as systematic risk. This risk consider the entire market and has effects on this scale. The investor who undertook this risk will see that the factors which affect the overall performance of the whole marketplace.
Opportunity cost is the cost when you have purchased, chose or bought the product compared to another product. However, you will notice that if you buy another one you will get more value or consumer surplus but you have just bought and you missed chance. This is the opportunity cost
Answer:
The correct answer is option C.
Explanation:
An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.
Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.
The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.
Answer:
This is false. buying a franchise is expensive, as it involves buying the rights of a business from the business owners, who are commonly referred to as ''franchisiors".
Explanation:
Ravi would not be able to run the franchise business the way he wants as the Franchisiors determines the business model and procedures. Hence, he would have a limited control on the business. Thus, I would advise Ravi to avoid going into a Franchise business, if his motive is to be his own boss and have control on his business.
