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2 years ago

An ______ is a physical location where economic activity takes place such as farms, offices, and factories.

2 answers:

8 0

The question is asking to complete the said passage or statement in your question that states and ask the term that is a physical location where economic activity takes place such as farm, offices, and factories. And base on my further research, I would say that it is the Economic Setting. I hope this would help

Mrrafil [7]2 years ago

3 0

An economic setting <span>is a physical location where economic activity takes place such as farms, offices, and factories. Hope this might help you. Thanks!</span>

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Which of the following statements about the capital asset pricing model (CAPM), which is the "father" of the security market lin

HACTEHA [7]

Answer:

(d) All of the above responses are correct

Explanation:

The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.

Beta refers to sensitivity of return from stock with respect to the market return.

Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.

ER = Rf + β (Rm- Rf)

ER= Expected Rate Of Return

Rf= Risk Free Rate of Return

Rm= Return from market

β = sensitivity index of security return to market return

Security Market Line (SML) is a graphic representation of CAPM.

Thus, (d) is the correct option

7 0

2 years ago

Adam owns a software development company. he and his team developed and licensed new software that could help many organizations

Galina-37 [17]

The correct answer is royalty. Royalty is considered to be a payment by which is made by one by which the franchisee or the licensee owns the asset in particular and that it is for the right of having to do an outgoing use of the asset.

3 0

2 years ago

Read 2 more answers

Dominik Corporation purchased a machine 5 years ago for $527,000 when it launched product M08Y. Unfortunately, this machine has

Sloan [31]

Answer:

$532,000

Explanation:

The opportunity cost is the cost of the best option rejected.

In this case the option rejected was the investment project that would have returned a total fo 532,000

Therefore, the model 240 should produce a higher profit than 532,000 to reject his project.

The 310 model would have unused capacity as it has more capacity than model 240 but the company will not need to produce as much. So it is discarted from the calculation as it has inefficiency

3 0

2 years ago

A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period dis

Kipish [7]

Answer:

A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period distorts financial results for the current accounting period:

a. only.

Explanation:

The lower of cost or market (LCM/NRV) method states that when valuing a company's inventory use the historical cost or the market value, whichever is lower. The historical cost refers to the cost at which the inventory was purchased. The market value is the current price. The implication is that while the historical cost remains static, the market value shifts over time.

Therefore, if there is a one-time error made in the use of the LCM/NRV rule, it only affects the current period. The next accounting period will restart the process of comparing the historical costs with the market value, thus obviating the need to repeat the error.

8 0

2 years ago

Investments and loans base their interest calculations on one of two possible methods: the interest and the interest methods. Bo

IrinaK [193]

FV = PV Times (1 + r)^n
FV = PV + (PV Times r Times n)
False
False
True
Laura should invest in investment P

Investment = L FV = $66,485.49 Make this investment? No

Investment = M FV = $59,400 Make this investment? No

Investment = P FV = $77,318.37 Make this investment? Yes

Explanation:

Compound interest: FV = PV Times (1 + r)^n
Simple interest: FV = PV + (PV Times r Times n)
The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. False
After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. False
All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. True

Investment = L

Interest rate and method = 5% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.05)^8

FV = 45000 * (1.05)^8

FV = 45000 * 1.477455 = $66,485.49

Make this investment? Yes / No

Investment = M

Interest rate and method = 4% simple interest

Expected Future Value, FV = PV + (PV * r * n)

FV = 45000 + (45000 * 0.04 * 8)

FV = 45000 + 14400 = $59,400

Make this investment? Yes / No

Investment = P

Interest rate and method = 7% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.07)^8

FV = 45000 * (1.07)^8

FV = 45000 * 1.718186 = $77,318.37

Make this investment? Yes / No

Since she can only make one investment during the eight-year investment period, Laura should invest in investment P

8 0

2 years ago