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2 years ago

1. If the price of the share grows as the company grows, how does buying 25 points

Business

1 answer:

Simora [160]2 years ago

6 0

Answer: b. An investor will be able to sell these shares for a higher price and make a profit.

Explanation:

Capital gains are a way to earn a return from owning stock in a company. They involve buying stock at a certain price and then selling the stock when the price increases. The difference between the selling and the buying prices is your capital gain.

This is the benefit to the investor here. If they buy a stock that grows with the company. They will be able to sell at a higher price eventually such that they will make a capital gain.

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Explain the difference between fixed and variable costs and give two examples of each. Can a company budget for variable costs?

galben [10]

Answer:

Fixed cost in an organization does not change and is fixed while the variable cost keep changing if the production is increased.

Explanation:

Fixed cost are said to be that cost which does not change with production level for a certain limit. Let us suppose there is no change in the rent amount if we have only factory for the production of goods.

But the variable cost are those cost which increases as production increases. More will be the variable cost when the production will be more. Also for per unit basis, the variable cost remains the same.

Fixed cost are not important in decision making if there is an excess of capacity available.

For example,

Direct labor, direct material -- variable cost

Salary of supervisor, rent of factory -- fixed cost

Even though there is not much change in the variable cost, like for suppose material price increases, a company can still make a budget that is based on the past experience and predicting the market prices. Similarly, if there is a machine that uses three units of direct material for a piece if finished product, which is not going to change in the future. Thus the company can make a budget.

5 0

3 years ago

Bethany is doing a research project that involves several numbered lists and calculations. She wants to use technology to make t

N76 [4]

Answer:

Explanation:

Bc u can put lists in there and u can do the math in there too

4 0

2 years ago

Read 2 more answers

Charging high prices to earn large profits during a time when there is little competitionrepresents a ________ strategy:________

Usimov [2.4K]

Answer:

Skimming

Explanation:

Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.

Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.

6 0

2 years ago

Read 2 more answers

If on November 26,2017, The Dow Jones industrial average closed at 12,743.40, which was down 237.44 that day. what was the retur

n200080 [17]

Answer:

-1.83%

Explanation:

The closing price was 12,743.40, which was down by .

it means that the opening price was

$12,743.40 + $237.44 = $12,980.44.

The percentage return will be the

return/ original price x 100

=- - 237.44/12,980.44 x 100

= - 0.018291574 x 100

= - 1.83%

7 0

2 years ago

Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the accounting eq

myrzilka [38]

Answer:

Assets = Liabilities + Stockholders' Equity

1. 1,600 0 1600

2. -400 0 -400

3. 0 0 0

4. -100 0 -100

5. -400 0 -400

6. 1000 0 0

-1000

7. 7000 7000 0

8. 0 200 -200

9. 10000 0 10000

10. -500 0 -500

Totals 17200 7200 10000

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2 years ago