What is a key factor you should consider when determining asset allocation

The penalty for a substantial understatement is triggered when ____

zysi [14]

Answer:

The correct answer is A

Explanation:

A substantial understatement may occur when tax return is understated by an amount greater than 10% of the tax required to be shown on the tax return.

Example: If a tax payer that is suppose to report a $6000 tax due and choose to report a $2000 instead, to know if a penalty will be charged or not it has to be greater than 10% of the amount which is suppose to be reported (i.e $6000 x 10% = 600) . therefore in the case shown above the penalty will be applied

3 0

3 years ago

You decide to take $600 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how mu

Ostrovityanka [42]

To determine the increase in the amount of money in the economy brought about the $600 taken out of the piggy bank, we multiply $600 by the decimal equivalent of the percentage given. That is,
($600) x (0.02) = $12
Hence, your $600 will increase the amount of money in the economy by $12.

3 0

2 years ago

An investment adviser representative who prepares financial plans for customers is also a registered life insurance agent in tha

Alex777 [14]

Answer:

D. Recommendation to buy life insurance does not make the investment advice any less objective.

Explanation:

investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer

In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer

✓. Sale of the mutual fund mayor is alt in a taxable event to the customer

✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm

✓Agent will earn a commission on the life insurance purchased by the customer

6 0

3 years ago

You sign a contract to purchase a machine that will allow you to travel back in time and meet abraham lincoln. assuming that tim

ddd [48]

The correct option is C). Void contract. It is void type of contract if you sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln.

<h3>What is void contract?</h3>

Void contract is a formal contract between two parties, which is not authorized by the law and enforceable from the moment it was created.

A void contract is little differ from the valid contract. Void contract is not an actual contract, despite it is unenforceable.

Both void and voidable contract are null, but a void contract cannot be officially valid.

Learn more about the void contract here:-

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6 0

1 year ago

Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $9.00 is binding. In t

soldier1979 [14.2K]

Answer:

1. In this labor market, a minimum wage of $9.00 is binding : FALSE

2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE

3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE

4. Binding minimum wages cause frictional unemployment : FALSE

Explanation:

Question has been attached here

Unemployment is the term used to define those who are willing and are actively seeking work but cannot find any. A minimum wage is a price control, in the form of a price floor imposed by government legislation in order to protect laborers from low wages. Paying anything below the minimum wage is against the law.

1. In this labor market, a minimum wage of $9.00 is binding : FALSE

A minimum wage is binding only if it is set above the equilibrium price. In this scenario, the equilibrium price is at $12. Hence, $9 is not binding since a shortage of labor would gradually raise the price to the equilibrium.

2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE

When there is a shortage in the market, it means that the quantity supplied is higher than the quantity demanded. With any particular commodity such as bread or rice, a shortage creates a rise in price. Just as that, a shortage of workers creates an upward pressure on the price (wage). Since there are no price ceilings, market will reach equilibrium.

3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE

As shown in the diagram, the market equilibrium is $12. If the minimum wage was $12.50, there would be a surplus of labor (quantity supplied is higher than quantity demanded). Naturally, this may cause a downward pressure on wages until it reaches $12. However, when a minimum wage is imposed at $12.50, it cannot fall below that level. Thus, the market will not reach the equilibrium.

4. Binding minimum wages cause frictional unemployment : FALSE

Frictional unemployment is a type of unemployment that occurs when workers are temporarily unemployed while switching between jobs. It is normal and occurs even in the healthiest of economies. A binding minimum wage is more likely to cause structural unemployment. This occurs when there is a mismatch between the skills of the labor force and the skills expected to be possessed by employers to do a particular job. Hence, even if jobs are available, the laborers are not suited to do them and thus are unemployed.

6 0

3 years ago