Explanation:
This question is imprecise, because the reason for the existence of business is to satisfy the needs of consumers, being characterized as an economic activity whose main objective is to generate profits.
Therefore, the economic needs of society are not met by companies at the expense of the suffering imposed on their customers, since the goods and services produced exist to satisfy the human needs necessary for a better quality of life.
It is also important to emphasize that, currently, there is a new interaction between company and consumer, where there is a much more direct relationship, where there is a social demand that companies be much more than just profitable entities, consumers expect companies to exercise a social role of contributing to the social and environmental development of the macroenvironment in which it is inserted. Therefore, a company that does not exercise corporate governance in the globalized world, has little conditions to remain in the market in the long run.
The accounts that would affect the net income in the income statement are:
- (2) Merchandise inventory.
- (3) Cost of goods sold.
- (4) Transportation-out.
- (7) Selling expense.
- (8) Loss on the sale of land.
- (9) Sales revenue.
<h3>Which items affect net income?</h3>
The ending and beginning merchandise inventory play a role in the cost of goods sold which is deducted from net income.
Selling expenses such as transportation-out are also deducted as well as the loss on sale of land. Sales revenue is added to net income.
Find out more on accounts in the income statement at brainly.com/question/21851842.
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c. Sailors would be the correct answer
Answer:
e) 3.38%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Required rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For A
= 4.25% + 0.70 × (11.00% - 4.25%)
= 4.25% + 0.70 × 6.75%
= 4.25% + 4.725%
= 8.975%
For B
= 4.25% + 1.20 × (11.00% - 4.25%)
= 4.25% + 1.20× 6.75%
= 4.25% + 8.1%
= 12.35%
So, the difference would be
= 12.35% - 8.975%
= 3.375%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
