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Natasha_Volkova [10]
3 years ago
6

For each of the following, indicate which type of investment risk is being described.

Business
1 answer:
Goshia [24]3 years ago
5 0

Answer:

a. The ne research may go against the whole gram cereals and people will consume it less therefore demand may be lowered causing the sales and profit to decrease.

b. The increase level of gearing makes the company risky and people do not prefer to invest in the company which have high gearing. The increase debt and interest burden may cause company to become bankrupt and there can be threat for solvency.

c. The bargaining power of buyer is high in such case where the seller finds it difficult to find a suitable buyer.  

Explanation:

Investment risk is the risk associated with the business or new investment project. There should be detailed analysis of risk and return before investing in any project. It is better to understand the nature of risk and the extent to which it can hinder the progress of the business.

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The national hockey league redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were f
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BR Company has a contribution margin of 9%. Sales are $477,000, net operating income is $42,930, and average operating assets ar
ser-zykov [4K]

Answer:

32.03%

Explanation:

Data provided as per the question

Net operating income = $42,930

Average operating assets = $134,000

The computation of  return on investment (ROI) is shown below:-

Return on investment =net operating income ÷ average operating assets

$42,930 ÷ $134,000

= 32.03%

Therefore for computing the return on investment we simply divide average operating assets by net operating income.

5 0
3 years ago
Read 2 more answers
If investors expect inflation to increase over the next 20 years and the maturity risk premium is expected to increase over the
olganol [36]

Answer: normal /upward sloping

Explanation:

The yield curve is a curve that shows the relationship that exist between interest rate and time to maturity. According to the expectation theory, it is stated that the yield curve will be upward sloping when there's increase in inflationary expectations.

The slope of the yield curve helps in giving a clue to know the direction of future interest rates. It should be noted that an upward sloping curve means that there is an expectation of higher interest rates in the future.

Therefore, when investors expect inflation to increase over the next 20 years and the maturity risk premium to increase over the next 5 years, the general yield curve will be upward sloping.

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3 years ago
If the market for corporate control were efficient as a governance device, then only __________ would be targets for takeovers.
CaHeK987 [17]

Answer:

The correct answer is c. poorly performing firms.

Explanation:

Corporate governance is the set of rules, principles and procedures that regulate the structure and operation of the governing bodies of a company. Specifically, it establishes the relationships between the board of directors, the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules governing the decision-making process on the company for the generation of value.

In recent years, and more specifically following the onset of the financial crisis, the international community has understood the importance of listed companies being managed in an adequate and transparent manner. The good governance of companies is the basis for the functioning of markets, as it favors credibility, stability and contributes to boosting growth and wealth generation.

The weakness shown by corporate governments of large organizations in the past has multiplied the demands for transparency, truthfulness, good practices and responsible business behavior on the part of investors, consumers and society in general, which not only pay attention anymore. to financial indicators, but they also want to know how those results have been achieved.

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