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
Ulleksa [173]
2 years ago
11

Assess the trade-offs that investors face when making investment decisions, and provide one example of such a trade-off.

Business
1 answer:
polet [3.4K]2 years ago
7 0

A common trade-off that investors face when making investment decisions is the risk-return trade-off.

A trade-off simply means the situational decision where an economic entity loses one quantity in order to gain something else.

A common trade-off that investors face when making investment decisions is the risk-return trade-off. It should be noted that higher risks are usually associated with more probability of higher return. Also, a lower risk has a greater probability of lower return but it's safer.

In this case, investors are usually faced with making a decision of whether to go for a safer investment or to go for one with more risk that will yield more returns.

Read related link on:

brainly.com/question/25385948

You might be interested in
When is the only time to abbreviate on a job application? Question 3 options: In the Personal Information section In the Positio
Alexxandr [17]

Answer:

Availability Section

Explanation:

All the information in a job application needs to be very detailed and with little to no room for interpretation. This is because a job application is a one-time deal meaning you do not get to redo it once you turn it in. If the hiring manager does not understand something in the job application they will simply throw it away and pass on to the next application on the list, they will not waste time on it. Therefore, the only thing that can be abbreviated would be the Availability Section when dealing with days of the week. Instead of spelling out every day you can say any of the following...

Mon, Tue, Wed, Thu, Fri, Sat, Sun

Sat-Sun

Mon-Fri

8 0
2 years ago
Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2007, Cecil Jameson, Attorne
Kisachek [45]

Answer:

1. Determine the amount of owner’s equity (Cecil Jameson’s capital) as of July 1, 2007.

equity = assets - liabilities = $15,050 - $1,530 = $13,520

2. State the assets, liabilities, and owner’s equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate the increases and decreases resulting from each transaction and the new balances after each transaction.

since there is not enough room here, I used an excel spreadsheet

   

3. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31, 2007.

Cecil Jameson, Attorney-at-Law

Income Statement

For the month ended July 31, 2007

Service revenue                                                       $5,953

Expenses:

  • Paralegal services $1,635
  • Wages expense $850
  • Rent $1,200
  • Answering service expense $250
  • Utilities expense $325
  • Supplies expense $115
  • Miscellaneous expense $75                           <u>$4,450</u>

Operating income                                                     $1,503

Cecil Jameson, Attorney-at-Law

Balance Sheet

For the month ended July 31, 2007

Assets:

Cash $6,873

Accounts receivables $2,225

Supplies $980

Land $10,000

Total assets $20,078

Liabilities:

Accounts payable $720

Paralegal fees payable $1,635

Total liabilities $2,355

Equity:

Jameson, Cecil, capital $18,723

Jameson, Cecil, drawings -$1,000

Total equity $17,723

Liabilities + Equity = $20,078

Cecil Jameson, Attorney-at-Law

Statement of Owner’s Equity

For the month ended July 31, 2007

Jameson, Cecil, capital balance July 1, 2007       $13,520

Investment during the month                                  $3,700

Net income                                                                <u>$1,503</u>

Subtotal                                                                    $18,723

Drawings                                                                  <u>($1,000)</u>

Jameson, Cecil, capital balance July 31, 2007     $17,723

4. (Optional). Prepare a statement of cash flows for July.

Cecil Jameson, Attorney-at-Law

Statement of Cash Flows

For the month ended July 31, 2007

Cash flows from operating activities  

Net income                                                                  $1,503

Adjustments to net income:

  • Decrease in accounts receivables $975
  • Decrease in accounts payables ($810)
  • Increase in supplies inventory ($130)
  • Increase in paralegal fees payable $1,635       <u>$1,670</u>

Net increase in cash from operating activities          $3,173

Cash flows from investing activities                                $0

Cash flows from financing activities  

Additional paid in capital                                           $3,700

Drawings                                                                    <u>($1,000)</u>

Net increase in cash from financing activities         $2,700

Net increase in cash                                                  $5,873

Cash balance July 1, 2007                                        <u>$1,000</u>

Cash balance July 31, 2007                                      $6,873

Download pdf
5 0
3 years ago
Which of the following situations would be most likely to lead to an increase in interest rates in the economy?
sveticcg [70]

Answer:

The correct answer is E

Explanation:

The interest rate is defined as the rate of percentage which is charged on the loan or which is paid on the savings. It is the reward for lending as well as the cost of borrowing.

When the interest rate rises or increases, then everyone tend to borrow more amount of money and the high demand of the credit states that the people are willing to pay more for the same.

So, the situation which would increase the interest rate in the economy is when the corporations set up for the expansion plans and increase the demand for the capital.

3 0
3 years ago
The cost-benefit principle states that _____ are the incentives that shape decisions.
myrzilka [38]

The cost-benefit principle states that <u>costs and benefits</u> are the incentives that shape decisions.

<h3>How is the cost-benefit principle used?</h3>

According to the fundamental of economics, the cost-benefit principle states that every rational being is likely to take into consideration the cost and the benefit of one or a set of decisions before a final choice is taken.

In order words, a line of decision for example an investment should only be undertaken only if the benefits associated with the cost of such investment are at least as large or way larger than the cost.

See the link below for more about the Cost-Benefit Principle:

brainly.com/question/885073

7 0
2 years ago
A(n) ______ is a type of compensation arrangement where an agency charges a client a fixed monthly amount of money for all of it
ivanzaharov [21]

Answer:

The correct answer is E

Explanation:

Fee-commission combination is the term which is described as an agency which charges the fixed fee and it is charged on monthly basis for the services that is offered to the clients and the medial commissions earned are the one who are retained by the agency.

Therefore, the fee-commission combination is the kind of compensation contract where the agency charges the client a fixed monthly payment for the services.

7 0
3 years ago
Other questions:
  • To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. Th
    8·1 answer
  • On Air Studios organizes its jobs by activity, such as production, marketing, accounting, and finance. On Air Studios applies __
    10·1 answer
  • An oligopoly arises when _ have all or most of the sales in an industry. If oligopolists with the same marginal costs and no fix
    9·1 answer
  • Pioneer Chicken advertises "lite" chicken with 30% fewer calories than standard chicken. When the process for "lite" chicken bre
    9·1 answer
  • PB2.
    11·1 answer
  • Which economist theorized that depression will occur when the economic cycle is broken?
    7·1 answer
  • Albert works as a server for a restaurant that gives him a certain amount of autonomy. For example, if customers complain about
    9·1 answer
  • Which of the following statements about the free market is correct?
    14·1 answer
  • 2+2=??????????????????/
    13·1 answer
  • Colbert, and $1,300,000 for stewart. what was consolidated cost of goods sold for 2021?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!