1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enot [183]
3 years ago
8

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve

stors face?
Business
2 answers:
bearhunter [10]3 years ago
9 0

<u>The issuer could go bankrupt is the potential risk that investors face. </u>

Further Explanation:

Bond:  

The bond is a long-term debt which the company promises to pay with interest to their bondholders.  

  • The issuer raise capital according to their need and want, they mostly do invest the money. So, this is not a potential risk faced by investors.
  • The bondholders get interest for the investment in the bonds of the company, only the stockholders get the dividend payment by the company or the issuer.
  • This is the only situation where the bondholder may face risk when the company or the issuer goes bankrupt, the issuer may not be able to pay the interest to its bondholders. Therefore, this is a potential risk faced by investors.
  • If the issuer may not make a profit then also the issuer has to pay the interest to its bondholders whether he makes profit or not. It cannot be regarded as potential risk to investors.

Learn More:

1. Stock and bonds  

<u>brainly.com/question/1330190 </u>

<u> </u>

2. Stock price  

<u>brainly.com/question/11192535 </u>

3. Stock portfolio  

<u>brainly.com/question/5728646 </u>

Answer Details:

Grade: High school

Chapter: Stocks and bonds

Subject: Business studies

Keywords:

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face.

andrew11 [14]3 years ago
7 0
The potential risk that the investors may face when this is made use is that the issuer may not be able to make profit when the bonds are considered to offer as a guaranteed return because they are honored by law and with that, this will cause the value of the bond to be lowered when exposed in the market in which the return will also be lower when return to the investors. 
You might be interested in
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
Elza [17]

Answer:

See explaination and attachment

Explanation:

Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.

Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

See attachment for the step by step solution of the given problem.

8 0
3 years ago
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is r
Sedbober [7]

Answer:

Resource View

Explanation:

A resource view or resource-based view is a strategic tool, hence its use by managers. It is bascially employed by management for the assessment of an organisation's strategic resources or assets in order to enhance the efficient and effective use of all available resources to maximize competitive advantage.

Some refer to the Resource Based View (RBV) as a managerial framework specifically employed to strategically maximize resource use for sustained advantage over competitors.

3 0
3 years ago
Think about your decision to buy the textbook for this course. You paid $250 for the book, but you would have been willing to pa
mart [117]

If the questions are “would I choose to buy the book in the first place”, and “Would I sell the book at the end of the course”, the answer to both questions is yes. The benefit of buying the book for the course is $400 dollars, which is greater than the sales price of $250. Thus, I would buy the book. At the end of the course, the benefit of keeping the book is $50, while my potential sales price is $125 (50% of 250). Thus, I can sell the book for more than it is worth to me, so I will sell the book at the end of the course. 

7 0
3 years ago
The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shar
postnew [5]

Answer:

  • $82000
  • $20500
  • $750
  • Not taxable

Explanation:

with the information provided

A) how the entity's non separately stated income is $82000

to calculate the non separately stated income

(Total long term stated income) - (total short term stated income)

long term stated income

book value = $100000

long term capital loss/gain = $6000

book value + long term capital loss = $106000 ( total long term stated income )

short term stated income

tax exempt = $3000

dividends = $9000

1231 gain = $7000

net passive income = $5000

total short term stated income = 3000 + 9000 + 7000 + 5000 = $24000

hence non separately stated income = $106000 - $24000 = $82000

B) To show how one of he kitsch shareholder is bearing $205000 income or loss

Number of shareholder = 4

non separately stated income = $82000

non separately stated income / number of shareholder = 82000 / 4 =$20500

C)

Tax exempt income = $3000

number of share holders = 4

hence Billings' share of tax exempt interest income = tax exempt income / number of share holders

= $3000 / 4 = $750

Billings income is not taxable this year because his taxable income this year is $20500

3 0
2 years ago
Read 2 more answers
Common approaches to pricing are oriented around which four elements?
OLEGan [10]

Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.

Pricing refers to the process of determining the value that a producer will receive in the exchange of services and goods produced with final consumers or middle men.

  • The aim of generating profit is one of the element considered for price fixing.

  • Competition levels with other companies in the industry will influence price fixing because consumers pocket have to be considered.

  • Level of Cost incurred during production of the goods and services also play a great role in price fixing.

  • Demand from the market also influence price setting on a product.

Read more on this here

<em>brainly.com/question/15398134</em>

7 0
2 years ago
Other questions:
  • What should i name my blue dinosaur
    10·2 answers
  • When Eleanor went to Letty's department store, she noticed that the price that rang up when she was billing was much higher than
    14·1 answer
  • An agent of a broker-dealer is solicited by the general partner of an oil and gas income program being offered as a private plac
    10·1 answer
  • The difference between the nominal interest rate and the real interest rate is
    8·2 answers
  • What is market penetration
    9·1 answer
  • How is a command economy different from a mixed economy?
    13·1 answer
  • Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 2.75 percent a
    6·1 answer
  • Which of the following is a nominal variable? - Education - Age - Employment status - One needs to know the attributes to determ
    5·1 answer
  • Many performers, like singers, actors, and athletes, get paid large amounts of money. Do you think they earn these amounts or sh
    15·2 answers
  • Economic growth refers to a steady increase in the production of goods and services in an economic system.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!