Answer:
C
Explanation:
When consolidating parent and a wholly-owned subsidiary we aim to eliminate entries related to the inter company services. Since the subsidiary had recorded a debit to service expense when it was rendered, the adjusting entry would be a credit to the service expense amount by the same figure charged i.e. $600,000 in this case
Customer's perceptions set the price ceiling - if they see the price as too high they won't buy it, demand will fall, and so will the equilibrium price. Their perception on the fairness of the price will affect how high the price can go before losing sales.
Answer: C. has taken custody of customer funds and must comply with the additional requirements of the custody rule
Explanation:
The options for the question are:
A. can follow the customer's instructions without additional action taken, since this is a service to the customer
B. has not taken custody of client funds, unless the custodian bank and the investment adviser are under common ownership
C. has taken custody of customer funds and must comply with the additional requirements of the custody rule
D. has a conflict of interest that must be disclosed in writing to the customer
The Investment Advisers Act is a law which was enacted in order to regulate the investment advisers. It requires that firms that receive compensation when they advise others about their securities investments will have to register with Securities Exchange Commission and also abide with the regulations which are in place to protect the investors.
In the Act, it was said that an investment adviser has had a custody of the client assets, and should therefore comply and abide with the rule since the adviser is in possession of the client funds. Therefore, option C is the correct answer.
The process of researching and creating new instruments to meet the requirements of investors and institutions in a financial environment that is rapidly shifting is known as financial engineering.
The application of mathematical techniques to the resolution of finance-related issues is known as financial engineering.Financial mathematics, mathematical finance, and computational finance are all other names for it.Tools from applied mathematics, computer science, statistics, and economic theory are used in financial engineering.
What distinguishes finance from financial engineering?
The fact that finance professionals use the products that finance engineers create in order to serve clients is a basic way to understand the difference between the two professions. Even though the two professions are distinct, they collaborated to create the industry we know today.
Learn more about financial engineering here:
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<span>National Electronics needs to lower their price because of the double inventory. Big Buy Electronics, on the other hand, needs to lower their price, too, to compete at the market. If the company will not do this, they will get lower sales at that given time. </span>