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3 years ago

Why do people buy stocks?

Business

1 answer:

Over [174]3 years ago

3 0

Answer:

Investors buy stocks for various reasons. Here are some of them: Capital appreciation, which occurs when a stock rises in price. Dividend payments, which come when the company distributes some of its earnings to stockholders.

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Distribution strategies

serious [3.7K]

At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.

3 0

3 years ago

Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec

densk [106]

Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

Depreciation= $1375

Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price: $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

Depreciation= $1375

7 0

4 years ago

Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa

lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.

3 0

3 years ago

Larned Corporation recorded the following transactions for the just completed month.

lara [203]

Answer:

1. Dr Raw materials $80,000

Cr Account payable $80,000

2. Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

Cr Raw materials $71,000

3. Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

Cr Cash $112,000

4. Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

Explanation:

Preparation of Journal entries

1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :

Dr Raw materials $80,000

Cr Account payable $80,000

(Raw materials purchased on account)

2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:

Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

(71,000-62,000)

Cr Raw materials $71,000

(raw material charged to production)

3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :

Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

(112,000-101,000)

Cr Cash $112,000

(Wages charged to production)

4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :

Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

(Depreciation charged)

4 0

3 years ago

uppose the Social Security payroll tax were increased today to 16.4 percent in order to solve the 75-year fiscal imbalance in th

dexar [7]

Answer:

Ideally, the amount of the social security payout depends on the average lifetime earning of the residents of the country. The government averages the earning and then finalizes on the amount to be paid by each of the resident. If the payroll tax increases, in the longer run a few workers will get affected but, in the short run the increase has its immediate effect on 92% of the workers. Out of the 92%, 78% have a phase out option whereas 48% of them are under the as-needed scenario.

But, the longer a rate increase is delayed, the higher the increase in lifetime taxes for later generations. Workers born1936–1990 would have higher increases in lifetime taxes under an immediate rate rise, workers born 1996–2005 would generally have higher increases in lifetime taxes under phased increases, and workers born 2006–2015 would have higher increases in lifetime taxes under as-needed increases. The future workers would experience the smallest tax increases under the immediate option. Lifetime taxes for workers born 2011–2015 would rise 16 percent under an immediate increase, 27 percent under phased increases, and 33 percent under as-needed increases.

Thus,The increase in the payroll taxes will increase the cost for the people at different income level, as it is calculated on the basis of the income of the individual. As the women are paid lesser than their male counterparts, it can be said that the male population will be affected more by the increase in the social security payout.

Explanation:

3 0

4 years ago