Answer:
The correct answer is letter "B": There is a negative correlation.
Explanation:
In the world of Finance, Correlation is a statistical measure of how two securities move in relation to each other. Correlation is represented by the correlation coefficient with ranges between (-1) and (+1). When two variables move in a similar direction, they are considered positively correlated. If the variable move in different directions they are negatively correlated.
Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Answer:
The sale of Miko's car to Pye for $4,500
Explanation:
Article 2 of the uniform commercial code (UCC) covers the sale of goods, but it doesn't cover the sale of services, securities or real property.
The only transaction that involves the sale of goods happened when Miko sold her car to her neighbor. When you rent something, you are providing a service, the same happens with a trip (transportation and lodging services).
Answer: d. price control.
Explanation:
Price control is a mechanism used by government in order to control price, this is done when government sets a minimum and maximum price for certain goods and services, this is done in order to manage the purchasing power for such goods. Most times government adopt price control system for things like food, energy product, etc. Price control can lead to a situation where there will either be shortage or over supply.
