Answer
Associate: where a company has holdings of between 20% and 50%.
Minority Interest: where a company has holdings of less than 20%
Parent Company: where a company has holdings of more than 50%.
Explanation:
<u>An associate company </u>(or associate) is a company that owns a business beyond 20% and not more than 50%. In business valuation such a company that has invested significantly in the shares of another company will have voting rights in the board of the acquired company.
<u>Minority Interest</u> is the term used to describe the investments of one company in another company, when such investments are less than 20% of the total value of the acquired company.
<u>Parent Company</u> is a company that owns more than half (50%) of the shares or value of another company.
Effective teamwork and high productivity are good indications of positive Productivity goals.
Answer:
$444,444.44
Explanation:
Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year
The required return on this investment is 7.2%
= 7.2/100
= 0.072
Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows
PV= C/r
= $32,000/0.072
= $444,444.44
Hence the amount of money that will be paid for the policy is $444,444.44
Answer:
[D]
Explanation:
Based on the information provided within the question it can be said that the Clients being accredited or qualified would not affect registration requirements or exemptions. This is due to Investment Advisors Act of 1940 and Investment Advisor would have to register if they are giving advice about securities, being compensation, and being the business of giving advice, regardless if the client are accredited or qualified.
Answer:
D. Exporting Her Products.
Explanation:
As Mary wants to sell her products in Europe since they're doing well in the United States. She doesn't have a lot of capital and is risk-averse, so she should begin with exporting her products which is the least riskiest and easiest way to enter in foreign market. Exporting is the mechanism by which you sell your products outside your country and generate profits. In this process very less risk is involved and you also need less level of investment as well. Mary can contact some sellers there and send her products to them and receive payment, hence much less risk in involved. With the help of exporting, she can also get the insights about that market's buying patterns as well that which products are in high demand there and can be sold profitably.
