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PilotLPTM [1.2K]
3 years ago
12

What are the potential risks of having all three of these buckets (savings, investments and debt payments) belong in the same ca

tegory?
Business
1 answer:
Vlad [161]3 years ago
5 0

The potential risks that these three groups fall into the same category is that it is a low percentage and it is not a realistic proposition.

According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:

  • 50% of salary must go towards mandatory expenses (housing rent payments, utilities, medical care, basic food, and transportation).
  • 20% of the salary must be used for savings and debt payments (programmed savings for old age or a special event, or the payment of debts such as card payments, bank loans, among others).
  • 30% of the salary must be allocated for non-priority expenses (it is the expenditure of money on experiences, objects, or others that are not essential for the individual).

This income distribution is unrealistic because most people spend more than 50% of their salary on compulsory expenses, reducing their economic capacity for other purposes.

In this way, the 20% destined to savings and payment of debts would be a minimum amount of the salary, which could have serious consequences such as:

  • Inability to pay debts
  • Inability to save for the future

Learn more in: brainly.com/question/12198015

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The market price people are willing to pay for a unit of a particular commodity is determined by A. the sum of average and margi
kkurt [141]

People are willing to pay for a unit of a particular commodity is determined by Marginal utility.

Explanation:

Marginal utility (MU) is characterized as the additional utility obtained from the use of one additional unit of a good or service, or the increased use of an increased unit by an entity.

Economists use the idea of marginal utility to assess how much of an item consumers can purchase. Positive marginal utility happens when the consumption of an additional item increases the total utility, while negative marginal utility occurs when the consumption of an additional item reduces the total utility.

8 0
3 years ago
If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as
ivanzaharov [21]

Answer: Restructuring cost

Explanation:

Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.

8 0
3 years ago
Annual general meeting what is it?
Sonbull [250]

Answer: Gathering of the directors and stockholders (shareholders) of every incorporated firm, required by law to be held each calendar year. Generally, not more than 15 months are allowed to elapse between two AGMs, and a 21-day's written notice of its date is required to be given to the stockholders. The main purpose of an AGM is to comply with legal requirements, such as the presentation and approval of the audited accounts, election of directors, and appointment of auditors for the new accounting term. Other items that may also be discussed include compensation of officers, confirmation of proposed dividend, and issues raised by the stockholders.

7 0
3 years ago
A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm
UNO [17]
This employee played the role of a: whistleblower.
3 0
3 years ago
You're more likely to be effective if you begin with "harder" tactics and move to "softer" tactics only if the harder tactics fa
blagie [28]

Answer:

False

Explanation:

As per the chapter of power and politics, all tactics exercised depends on the audience on which it is exercised, and how responsive the audience reacts to such tactics, but it is said to apply the softer tactics as would be easy to apply for the individual and it might result favorable on audience.

If such soft tactics fail then harder tactics shall be practice. As this will minimal the efforts of individual and will impact highly on the power to attain goals.

Thus, the above stated statement is False.

7 0
3 years ago
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