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n200080 [17]
2 years ago
10

Financial instruments (25) A) are created to transfer risks that are difficult to predict. B) are created to transfer risks that

are relatively easy to predict. C) require certainty of an event to be able to transfer risk. D) eliminate the risk from uncertainty, they do not transfer it.
Business
1 answer:
DanielleElmas [232]2 years ago
3 0

it should be noted that financial instruments are created to transfer risks that are difficult to predict.

<h3>What are financial instruments?</h3>

financial instruments can be regarded as contract that exist between individuals/parties which is accessing monetary value.

With these financial instrument , transfer risks in the financial domains can be predicted.

Examples of financial instrument are:

  • cheques
  • shares
  • stocks, bonds

Learn more about financial instrument at;

brainly.com/question/1096688

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Luke is an ordained minister. Luke's salary from his employing church last year was $31,000. The church did not designate any of
nirvana33 [79]

Answer

$31,000

Explanation:

(c) $31,000

Explanation:

As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.

In the given case, the church did not designate any of Luke's salaries as a housing allowance. Hence it is not deductible from Gross Income for Income Tax Purposes and irrespective of designation or not, it is not deductible for self-employment tax.

Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.

7 0
3 years ago
Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,300 in investment expenses. T
Veseljchak [2.6K]

Answer:

$3500 is deductible

Explanation:

The question is not complete . Please see the solution below :

The Investment Interest expense can be set off against Net Investment income ( Interest income - Investment expenses i.e $25000-$2000=$23000) to the extent and the remaining is carried forward to the next year. so here the investment interest expense is wholly set off against the interest income i.e $3500 is deductible

4 0
3 years ago
3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the
melisa1 [442]

Answer:

The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.

Explanation:

The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.

In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.

8 0
2 years ago
A south sea island produces only coconuts. In 2010, the price of a coconut is $1.50 and the quantity produced is 300. In 2012, t
Semenov [28]
1.50*300=$450
0.5*350=$175
(175/450)*100=39%
Real GDP in 2012 is 39%
8 0
3 years ago
Which of the following is considered important in a company's attempt to strengthen partner relationships? Group of answer choic
enot [183]

Answer:

All of the above are considered important in strengthening partner relationships

Explanation:

Partner relationship exists when two or more people come together to undertake a business venture. Profits and losses are between all partners.

Maintaining a good partner relationship ensures that the business performs and meets its goals.

A strategic path for objectives of the partners means the business does not only plan but executes its plans.

Shared vision and objectives ensures the partners work in harmony to achieve set targets.

The obejecives should be measureable, this sets realistic milestones.

Also shared vision and objectives should be formally agreed to by all parties.

8 0
2 years ago
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