Answer:
The answer is "The last choice"
Explanation:
While comparing 2 assets or portfolio management, the risk of each portfolio and the rates of return of each portfolio should be taken into consideration. Whether the same danger is in the two assets. One should be preferred with both the higher return and one from the lowest risk should be recommended unless the two have the same rate of return. Portfolio A consequently either has a higher return and an at least as low fluctuation as B, or even lower volatility as well as an anticipated return at least as strong as B.
Answer:
(B) What must be given up to acquire it
Explanation:
Opportunity cost, in a simple language, means trade-off or an income or savings that we need to forego.
It is the amount or value of a certain event or activity that must be given off due to choosing one alternative over another.
In this case, the salary of $50,000 per year is the opportunity cost.
, the key determinant of whether the diversification creates value would be: whether the diversification <span>enhances the competitive advantage of either or both of the two businesses
Here is an example of business combination in different sectors that create a value.
Let's say that a mobile manufacturer called company x (from electronic sector) combines its-self with an animation company (from entertainment sector).
Company x could obtain value from this combination by rewarding free movie/tv shows subscription for every mobile phone that they sold. By doing this, the sales in both sectors will be increased
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Answer:
C. Insurance expense will increase $2,250
Explanation:
On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:
Debit Credit
Prepaid Insurance $3,000
Cash $3,000
The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.
The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.
Debit Credit
Insurance expense(3,000*9/12) 2,250
Prepaid Insurance 2,250
So the answer will be C. Insurance expense will increase $2,250
Answer:
return the order to the retailer
