Answer:
$4540.19
Explanation:
Step 1: Get the formula for the value of the bond in 2018
Formula= P * (1+r)n
P= Investment = $5000
r= Coupon rate=6%
n= Period or number of years = 6 years
Step 2: Calculate the value of the bond in 2018
Value of the bond in 2018= 5000 * (1+ 0.06)6
= 7092.60
Step 3: Calculate the Present value of the bond
Formula= (P x Present Value Factor) + (Interest x The present value interest factor of an annuity (PVIFA))
(P x Present Value Factor) = (5000 x 1\(1+r)^n)
where r= rate of return= 8%
n= years = 6
(Interest x The present value interest factor of an annuity (PVIFA) =
Interest = (Coupon rate x Investment)
PVIFA= 1\(1+r)^n}
where r= rate of return= 8%
n= years = 6
= (5000 x 0.6307) + (300 x 4.6223 )
=4540.19
In a multi-step Income Statement:
A. Total expenses are subtracted from total revenues.
B. Gross profit (margin) is shown as a separate item.
C. Cost of sales and operating expense are subtracted from total revenues.
D. Other income is added to revenue from sales.
Answer: B.
Explanation: The multi-step income statement is ultimately used in determining Net Income which is calculated by separately determining :
1. Gross profit( Net sales - cost of goods sold)
2. Operating income( Operating expenses - Gross profit)
3. Operating income combined with non - operating revenue, losses, profit and expenses to obtain the net income or loss.
Conclusively, Gross profit(margin) will be calculated separately, which then be used to obtain the operating income.
A multi-step Income Statement includes subtracting total expenses from revenues, showing gross profit as a separate item, subtracting cost of sales and operating expense from total revenues, and adding other income to revenue from sales.
Explanation:In a multi-step Income Statement, all the options mentioned are correct elements and steps involved. A. Total expenses including operating expenses and cost of goods sold are subtracted from total revenues to calculate the net income. B. Gross profit (or margin) which is calculated as total revenues minus cost of sales, is shown as a separate item. C. Cost of sales and operating expense are subtracted from total revenues to get to operating profit. D. Other income is added to revenue from sales (part of total revenues) to give a full representation of the company's total income. Hence, a multi-step income statement provides a more detailed view on various revenue and expense sources.
Learn more about Multi-step Income Statement here:https://brainly.com/question/30459975
#SPJ3
You were recently hired into an organization that you have always wanted to work at, and in addition, your education and experience complement your new position perfectly. According to the situational model, your level of development is
a. S2
b. D2
c. S1
d. D4
According to the situational model, your level of development is D4.
Explanation:
The situation leadership approach, created through control of organisation's activities by Paul Hersey and Ken Blanchard, is a guide. The theory was published as the "life cycle leadership hypothesis" in 1969.
The model of situation leadership used by Blanchard in its definition of various levels of development, the words "voice" (ability, knowledge and skills) and "commitment" (esteem and motivation).
According to Ken Blanchard, "The so-called quality stage is composed of the four combinations of expertise and dedication"
D1 – Low competence with high commitment
D2 – Low/middling competence with low commitment
D3 – High competence with low/variable commitment
D4 – High competence with high commitment
What type of decisions affect how the firm is run from day to day; they are the domain of operations managers, who are the closest to the customer 1What Is the Purpose of Strategic Objectives?2Levels of Business Planning3Differences Between a Strategic Plan & an Operations Plan4Tall Organizational Structure
Answer:
(1) Operational planning decisions affect the day to day running of the organization.
The closest to the customer, are the client facing staff, they are mostly personnel in sales, marketing, and customer service.
Strategic objectives are usually statements, that an organization intends to achieve over a long period of time. The purpose of strategic objective is to show how an organization plans to achieve it's major goal as a business.
(2) Business planning is in three (3) levels, namely:
(i) Operational Planning
(ii) Tactical Planning
(iii) Strategic Planning
Difference between a Strategic Plan and an Operational Plan:
Strategic planning shows an organizational long term plan, and are usually developed by senior level managers (CEOs, Executive Directors, and Company Presidents).
Operational planning shows an organization short term plan, they are very much concerned with the day to day running of the business.
Explanation:
(1) Operational planning decisions affect the day to day running of the organization.
The closest to the customer, are the client facing staff, they are mostly personnel in sales, marketing, and customer service.
Strategic objectives are usually statements, that an organization intends to achieve over a long period of time. The purpose of strategic objective is to show how an organization plans to achieve it's major goal as a business.
(2) Business planning is in three (3) levels, namely:
(i) Operational Planning
(ii) Tactical Planning
(iii) Strategic Planning
Difference between a Strategic Plan and an Operational Plan:
Strategic planning shows an organizational long term plan, and are usually developed by senior level managers (CEOs, Executive Directors, and Company Presidents).
Operational planning shows an organization short term plan, they are very much concerned with the day to day running of the business.
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $4,500 cash from issuing common stock.
2) Borrowed $2,950 from a bank.
3) Earned $3,850 of revenues.
4) Incurred $2,550 in expenses.
5) Paid dividends of $550. Lexington Company engaged in the following transactions during Year
2:
1) Acquired an additional $1,250 cash from the issue of common stock.
2) Repaid $1,825 of its debt to the bank.
3) Earned revenues, $5,250.
4) Incurred expenses of $3,050.
5) Paid dividends of $1,540. The net cash flow from financing activities on Lexington's Year 2 statement of cash flows was
Answer:
$2,115
Explanation:
Lexington Company's Year 2 net cash flow from financing activities = cash received from issuing stocks minus bank loan payments - distributed dividends
net cash flow from financing activities = $1,250 (from additional stock) - $1,825 (bank payments) - $1,540 (dividends paid) = $2,115
A society's institutional mechanism for determining the way in which scarce resources are used to satisfy human desires refers to its A. macroeconomics. B. economy. C. economic infrastructure. D. economic system.
Answer:
D. economic system.
Explanation:
An economic system is the way governments organize, regulate and distribute their physical resources, services, and goods in a region or country. They can be based on traditions, organized according to command, where the central organization is the market and mixed systems that combine elements of the traditional command or market systems.
I hope you find this information useful and interesting! Good luck!
A company processed 10 TB of raw data to generate quarterly report. Although it's unlikely to be used again, the raw data needs to be preserved for compliance and auditing purposes. What is the most cost-effective way to store the data in AWS?A. Amazon glacierB. Amazon S3 one zone infrequent access (S3 OneZone-IA)C. Amazon S3 standard infrequent access (S3Standard-IA)D. Amazon EBS Cold HDD (SC1)
Answer:
Option "C" is the correct answer for the following question.
Amazon S3 standard infrequent access (S3 Standard-IA)
Explanation:
S3 Standard-IA is for less commonly accessible data, which needs quick access when required.S3 Standard-IA delivers the S3 Standard's strong endurance, maximum throughput and latency, with a reduced storage cost per GB and a GB recovery rate.To produce a quarterly report an organization analyzed 10 TB of raw data. Although it is impossible to be used again, the raw data must be maintained for purposes of oversight and examination in any databaseThe most cost-effective Amazon Web Services storage option for the raw data the company used for its quarterly report, when considering compliance and auditing needs, is Amazon Glacier.
Explanation:The most cost-effective way to store the 10 TB of raw data used to generate the quarterly report in Amazon Web Services (AWS) could be Amazon glacier. It offers low-cost storage designed for data archiving and long-term backup. It is optimal for data that is infrequently accessed and for which retrieval times of several hours are acceptable.
Amazon Glacier is designed for use cases where data is retained for months, years, or even decades, making it a good fit for the kind of data retention required for compliance and auditing purposes.
Learn more about Amazon Glacier here:https://brainly.com/question/38860664
#SPJ12
All of the following are conditions of an exchange except:_______.
a. each party is free to accept or reject the exchange offer.
b. each party has something that might be of value to the other party.
c. money is the medium of exchange.
Answer:
c. money is the medium of exchange.
Explanation:
For an exchange of goods and services to take place, each party must fully be contented that the products in exchange are the desired ones. No one should be forced to accept or reject the exchange offer. Indeed, it is a necessary condition each party has something that might be of value to the other party. However, when it comes to the medium of exchange, money is not the only medium of exchange, people can exchange goods directly without using money, and they can also use valued items such as gold and diamond. The correct answer is C.
Increases in the materials account are based on __________ which are supported by __________.
a.receiving reports; suppliers' invoices
b.receiving reports; materials requisitions
c.materials requisitions; receiving reports
d.suppliers' invoices; materials requisitions
Answer:
a. receiving reports; suppliers' invoices
Explanation:
The materials account gets increased only when the material actually gets to the warehouse. That means that a receiving report has to be generated in order to increase the materials account. This document is backed up by a supplier invoice, which states the amount invoiced by our supplier (vendor) - the increase in our materials' value.
Karen is a mechanical engineer who reports to the mechanical engineering department lead, Mike. Nadine is a project manager in the company who needs a mechanical engineer to assist with certain tasks on her project. Mike transfers Karen to Nadine's team for two months to complete the mechanical engineering tasks and then Nadine transfers Karen back to Mike's team. Which type of organization structure do Karen, Mike, and Nadine work in?
answer choices
composite organization
functional organization
matrix organization
projectized organization
Answer:
matrix organization
Explanation:
Matrix organization -
It is the type of organization , where the employees of an organisation , reports to two or more leaders or head , is referred to a matrix organization.
In this type of organization , there are more than two type of reporting managers.
Hence , from the given scenario of the question,
The correct term, is Matrix organization.
Layla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Layla will:________________
Answer: Setting the specific goals based on consumer expectations
Explanation:
According to the given question, Layla is the new hotel manager and she find negative response from the customers as she is not able to providing the good services according to the consumer expectations.
Layla believe that the actual issue is that the employees of the hotel are not understanding the actual requirement of the understand so setting the specific goals according to the customer expectations or requirement to improve her resort hotel service and also quality.
Therefore, the given answer is correct.
foolproof talks in depth about the important of your credit score when it comes to your budget and your savings
Answer:
Credit scores shows an individual's credit worthiness to lenders.
Explanation:
When it comes to savings and budget, credit scores shows an individual's credit worthiness to lenders. Credit worthiness are given consideration by financial institution,, when an individual wants to apply for a loan or mortgage.
Answer:
the other person is correct
Explanation:
Suppose that you have $10 comma 00010,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 5050% of its original value. During the second year, your investment at the end of year one increases by 6060%. Your advisor tells you that there must have been a 1010% overall increase of your original $10 comma 00010,000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $10 comma 00010,000 investment?
Answer:
20% loss
Explanation:
At time 0, original investment sum = $10,000
In year 1, loss was 50%.
= $10,000 * (1 - 50%) = 10,000 * 50% = $5,000
In year 2, gain was 60%.
= $5,000 * (1 + 60%) = 5,000 * 1.6 = $8,000.
Therefore, percentage change on original investment
= 8,000/10,000 - 1 = 80% - 1 = -20%.
Thus, percentage loss on original investment = 20%.
The airline and hospitality industries use______by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on un-sold inventory just before it expires.
A) Special-customer pricing.
B) Yield pricing.
C) Cash rebates.
D) Location pricing.
E) Customer-segment pricing.
Answer:
Yield pricing
Explanation:
Yield control refers to the variable pricing model based on knowing, forecasting and manipulating consumer preferences to optimize a set, moment-limited resource's sales or income.
As a particular stock-focused sales control division, yield management includes competitive inventory support in order to deliver the right model to the right buyer at the perfect time for the correct price.
Yield management is multidisciplinary, as it combines marketing, procedures and money management aspects into a new strategy that is extremely successful. While planning and executing yield management techniques, yield management analysts often need to collaborate alongside one or more divisions.
The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is called ________.
Answer:
Bench-marking
Explanation:
Benchmarking is the process that works for comparing the products, services, etc by the other companies who are dealing with the same type of business that refers to the best in the industry or performing superior performance.
It could be done either by the cost, quality, time, quantity, etc
The aim of doing this process is to gain the competitive advantage so that they get to know their strength, weakness, opportunities, and threats
Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value.
Answer:
Promotion expenses $40,000
To Common stock A/c $40,000
(Being the issuance of the shares is given to promoters is recorded)
Explanation:
The journal entries are shown below:
Promotion expenses $40,000
To Common stock A/c $40,000
(Being the issuance of the shares is given to promoters is recorded)
Since the stock has no stated value so we do not consider the additional paid-in capital in excess of par value account
We only recorded the promotion expenses and the common stock account for $40,000
The sale of a new security directly to an investor or a group of investors is called ________. A. a capital market transaction B. short selling C. arbitraging D. a private placement
Final answer:
The sale of a new security directly to an investor or a group of investors is known as a private placement, which is a capital market transaction.
Explanation:
The sale of a new security directly to an investor or a group of investors is called a private placement. This is different from a public offering, such as an initial public offering (IPO), where securities are made available to the public at large. In a private placement, securities are sold to a limited number of accredited investors or institutions. This practice is part of the broader capital market transactions, which are financial exchanges for the buying and selling of long-term debt and equity-backed securities.
Which is more useful to the financial manager? (Select the best answer below.) A. The cash flow statement because it recognizes amounts that will not be collected and, as a result, will not contribute to the wealth of the owners. B. The income statement because it recognizes amounts that will not be collected and, as a result, will not contribute to the wealth of the owners. C. The cash flow statement because it recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred. D. The income statement because it recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred.
Answer:
D. The income statement because it recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred.
Explanation:
The income statement in accordance to the accrual basis and matching concept recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred.
The business exists for a profit motive and it is the income statement that reveals whether or not the company is doing so, on a monthly, quarterly and annual basis.
Again, the listing of all categories of expenses on the income statement makes it possible to focus attention on which cost has to be brought under control to improve profitability.
Ernie had $10 in cash, with which he purchased gum for $1.29, a candy bar for $1.49 and a beverage for $2.39. If he does not have to pay sales tax, how much change should he receive?
Answer:
Explanation:
Okay, so. He has $10 in cash. This is what we would do.
$1.29 + $1.49 = $2.78
$2.78 + $2.39 = 5.17
Since we don't have any tax or anything like that. We would subtract.
$10 - 5.17 = $4.83
Therefore he will receive $4.83 in change.
Hope this helps!
To be effective, communication must ________. A. benefit both parties B. only involve a sender C. be written D. only involve a receiver E. benefit only one party
Answer:
Benefit both parties
Explanation:
Communication is the process of transferring information from the sender to the receiver. In a communication process: The sender encodes the information, transmits it via a medium, the sender receives the message, decodes it, perceives it and send feedback to the sender.
It the process mentioned above, communication will become ineffective if any of the things is not done properly. Consequently, it should involve, and therefore, benefit both the parties.
DesignIt!, a fashion company, has plans to be the sales leader in women's fashion. To achieve this goal the CEO has analyzed the current situation and determined objectives and resources. What planning activities still need to be completed? A. anticipate the future, decide on actions, and choose a business strategyB. organizingC. figureheadD. disturbance handler
Answer: (A) Anticipate the future, decide on actions, and choose a business strategy
Explanation:
According to the given question, a fashion company or organization planning for selling the leaders in the Women's fashion.
For achieving the various types of goals the CEO analyzing the present situation properly and determining the main resources and the objectives.
In an organization, choosing the various types of business strategies, anticipating the future and also decide on the given actions are the palling activities that is still needed for completing.
Therefore, Option (A) is correct answer.
To complete their planning process, the CEO still needs to anticipate the future, make decisions on actions to be taken, and choose a business strategy.
Explanation:In the situation given, the CEO of DesignIt, a fashion company, has already analyzed the current situation and determined objectives and resources. To complete the planning process, the CEO needs to further anticipate the future, decide on actions, and choose a business strategy. Anticipating the future includes market research, forecasts, and industry trends to better understand upcoming opportunities or threats. Deciding on actions involves determining the specific steps the company needs to take to reach the set objectives. Finally, choosing a business strategy refers to making major decisions that shape the company's business model and competitive positioning in the fashion industry.
Learn more about Business Planning here:https://brainly.com/question/36539439
#SPJ3
Globalization directly and indirectly influences the politics, environment, geo-politics, and economics of virtually every country in the world.
A) True
B) False
Answer:
TRUE
Explanation:
Globalization as defined by Merrian webster dictionary state that globalization is the development of an increasingly integrated global economy marked by free trade, free flow of capital which help in operating in international scale.
so many factors influences globalization of a country or region which includes Technology, economy, tax system, development of multinational companies.
Globalization has influences politics, environment, geo politics and economic in the following aspect:
Through technology; internet is now in vogue, television, phones, e.t.c, all these enable the country to learn from happening across the world and emulate there advancement.
in politics; technology has brought about e-voting system as against balloting system, which enable every individual to vote at the comfort of there zone.
through global industrialization, country will develop globally, allowing foreign countries to establish business in the country will boast international trade and promote foreign exchange. these will seriously affect the economy of the nation.
and also boast the country environment, because foreigner can migrate in and out of the country easily.
Dylan, a vice president of human resources, recommends adding self-appraisals to the company's performance management system. The other executives wonder why, since people would certainly want to inflate scores of their own performance. Which statement best supports Dylan's idea of using self-appraisals?
Explanation:
Self-appraisal is one of the best method to assess themselves of what kind of contribution that he has made to the company to grow.
He can also look back about the opportunities that the company has given to him to perform.
This actually,
speaks for resultsgets the chance to do peer reviewan exercise to grow in terms of careerlist out the achievements of selfcontribution done by the selfSo the chosen statement supports Dylan's idea.
Self-appraisals can offer multiple perspectives on an individual's job performance, and provide opportunities for learning and improvements. They can also assist in identifying training needs and facilitate decision-making regarding an employee's future in the organization. While inflated self-evaluation and other potential biases need to be acknowledged, the insights gained can be valuable for promoting constructive dialogue.
Explanation:The best statement to support Dylan's idea on self-appraisals is that self-appraisals can offer different perspectives of an employee's job performance and also provide a learning opportunity. These appraisals form part of the 360-degree feedback appraisal system, which allows the employee and their supervisor a comprehensive view of their performance from various sources including supervisors, peers, customers, and the employees themselves (Atkins & Wood, 2002). This system is engineered to help the employees make improvements via their efforts or through training and provides supervisors with more robust information for decision-making regarding the employee's position and compensation (Tornow, 1993).
Beyond assessing performance, appraisals are becoming more integrated processes in companies that serve to motivate employees to enhance performance and develop areas of competence. In this role, performance appraisals should assist in identifying training opportunities, gauging the effectiveness of certain training programs, and fulfilling organizational objectives. Should an evaluation system be correctly implemented and tailored to suit the culture and needs of a specific organization, it can be an asset in accomplishing its goals (DeNisi & Kluger, 2000).
However, it's crucial to keep in mind potential challenges, such as the fact that even supervisors may underrate employees who give themselves lower feedback ratings, or the tendency of individuals to inflate their performance in self-appraisals. Nevertheless, these variations might be seen as valuable for gaining insights into the reasons for these discrepancies and promoting constructive conversations (Tornow, 1993).
Learn more about Self-Appraisals here:https://brainly.com/question/32943748
#SPJ2
In a job interview, Lillian is asked to be part of a three-member group and design a mock business process based on the strengths and skills of the group's members. In this case, which of the following skills is the interviewer trying to test?
Collaboration
Answer:
collaboration skills
Explanation:
In human resources, collaboration skills refer to how a group of people work together in pursuit of a common goal.
Collaboration is important because people always work together, even people that work at home must interact with other coworkers (even if they are in another place). If an individual is brilliant and extremely efficient, but cannot work as part of a team, then he/she cannot work in a company.
You do not have to like your coworkers, but you have to respect them and work as a team to reach a common goal.
A thermogram of a house shows high amounts of thermal energy around the windows but not around the roof. Which conclusion is best supported by the thermogram?
A)The windows take in a lot of solar radiation.
B)The roof takes in a lot of solar radiation.
C)The windows are not energy efficient, but the roof is.
D)The roof is not energy efficient, but the windows are.
The windows are not energy efficient, but the roof is.
Explanation:
This picture form is used for heat loss identification and location of areas that require extra insulation. The spectrum of temperature is from mild (white) to cool (blue).
Thermography is a technique to visualize surface temperature by recording infrarot long-wave emissions.
The ventilation of the roof and windows reveals most of the heat drained from the building. Building thermograph displaying heat loss zones.
Answer: C)The windows are not energy efficient, but the roof is.
Explanation:
As part of the initial investment, a partner contributes equipment that had originally cost $100,000 and on which accumulated depreciation of $75,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $40,000 for the contributed equipment, what amount should be debited to the equipment account?
Answer:
Explanation:
$100,000 debit to the Equipment asset account because you are recording the actual original cost of the equipment (as is required by the Cost Principle of Depreciation). You should also credit the Accumulated Depreciation: Equipment account for $75,000 to show that the equipment has already depreciated for this amount.
Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year?
A. $130,000
B. $110,000
C. $150,000
D. $135,000
Answer:
B. $110,000
Explanation:
The computation of the stockholders' equity at the end of the year is shown below:
= Stockholders' equity beginning balance + net income earned - cash dividend paid
= $40,000 + $90,000 - $20,000
= $110,000
Simply we added the net income and deduct the cash dividend paid to the stockholder equity beginning balance
All other information which is given is not considered. Hence, ignored it
A demand curve that illustrates the law of demand ______. A. shows that the quantity demanded increases as the price rises B. has a positive slope C. is upward sloping D. shows that the quantity demanded increases as the price falls
Answer:
D. shows that the quantity demanded increases as the price falls
Explanation:
A Demand curve states the law of demand which depicts an inverse relation between price of a good and the quantity demanded of that good.
Quantity demanded of a good changes only when price of good changes with other factors affecting demand like income, tastes and preferences etc remaining constant.
Thus, when price falls, quantity demanded of a good rises i.e movement along the demand curve i.e downward movement. i.e D. shows that the quantity demanded increases as the price falls.
Final answer:
A demand curve that illustrates the law of demand D) shows that the quantity demanded increases as the price falls, thus having a negative or downward slope.
Explanation:
The law of demand is a fundamental principle in economics that describes a consumer behavior pattern. This principle is represented graphically by the demand curve. According to the law of demand, the quantity demanded of a good or service has an inverse relationship with its price. Hence, when the price of a good decreases, the quantity demanded increases, and vice versa. Therefore, a demand curve illustrating the law of demand is downward sloping.
The correct answer to the question is: D. shows that the quantity demanded increases as the price falls. This is because, all other things being unchanged, a decrease in the price of a good or service leads to an increase in the quantity demanded, which is reflected by a movement along the downward-sloping demand curve.
Classify this form of business:
Selena and Mario run a law firm in Chicago. The firm has debt of 100k, but Selena and Mario are not held personally liable for the law firm's debt
Answer:
Limited Liability Partnership / Limited Liability Company.
Explanation:
Limited Liability Partnership: A limited liability relationship is a company in which certain or all members have defined obligations, based on the law. Consequently, it can show collaboration and organizational features. Each partner in an LLP is not accountable or liable for any wrongdoing or incompetence of another party.Limited Liability Company: A limited liability company is a management structure whose proprietors are not personally responsible for the obligations or responsibilities of the business. Limited liability corporations are hybrid organizations that combine a company's features with that of a partnership or sole business entity.The form of business is a limited liability partnership (LLP) where the partners are not personally liable for the firm's debts.
Explanation:This form of business is known as a limited liability partnership (LLP). In an LLP, the partners are not personally liable for the debts and obligations of the business. Only the assets of the business, such as the firm's bank accounts or other property, can be used to satisfy the firm's debts.
Learn more about Classification of business here:https://brainly.com/question/32710393
#SPJ12
On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates.
Answer:
The graphs illustrates that China's production possibilities curve is ahead of the United States's production possibilities curve.
China being a much more stable and growing economy as compared to United States, it invests a huge portion in future goods. However, it produces a fewer consumer goods.
United States produces less capital goods as compared to China and it invests more in consumer goods.
Moreover, China's future production possibilities will move more faster than United States.
Explanation:
The differences in growth rates between China and the United States can be explained by analyzing their saving behaviors and preferences for present and future goods.
Explanation:The differences in growth rates between China and the United States can be explained using graphical analysis of "present goods" versus "future goods". In China, households save 40% of their annual income each year, reflecting a higher preference for saving and acquiring future goods. This higher saving rate allows for greater investment and production possibilities, leading to a higher growth rate of 9%. In contrast, households in the United States save less than 5% of their income, indicating a lower preference for saving and a greater focus on present consumption. This lower saving rate limits investment and production possibilities, resulting in a lower growth rate of 3.5%.
Learn more about Saving behaviors here:https://brainly.com/question/34917795
#SPJ3
Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
Answer:
commercial papers
Explanation:
Commercial papers are usually used to finance short term cash needs, since they generally have a maturity date of less than 270 days. They are considered current liabilities by the issuing corporations. Commercial papers are basically corporate promissory notes or IOUs.
Final answer:
Corporate bonds are unsecured debt instruments utilized by corporations for short-term financing. They are considered safer when issued by financially strong companies, and investors can reduce risk by diversifying their bond portfolios.
Explanation:
The subject of the question is corporate bonds, which are unsecured debt instruments issued by corporations to fund their short-term financing requirements.
These corporate bonds are considered a form of financial capital and are essentially a financial contract where the borrower promises to repay the borrowed amount along with interest over a specified timeframe.
A corporate bond differs from government-issued bonds, such as municipal bonds by cities, state bonds by U.S. states, and Treasury bonds by the federal government through the U.S. Department of the Treasury. The risk associated with corporate bonds can vary depending on the financial strength of the company issuing the bond.
Bonds issued by financially strong companies are deemed to have less risk because their likelihood of default or bankruptcy is lower. In the event a company fails to make payments, bondholders have the right to demand that the company declare bankruptcy and liquidate its assets to repay them.
To further minimize risk, investors can diversify their bond holdings, which is a strategy of purchasing bonds from various companies. This approach spreads the risk since it is unlikely that all companies will go bankrupt simultaneously.