Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.
However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.
Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
Answer:
The cross price elasticity of salsa and guacamole is 0.2. The two goods are substitutes.
Explanation:
The price of guacamole is increased from $2 to $2.5.
Percentage change in price
= 
= 
= 25%
The demand for salsa rises by 5%.
The cross price elasticity will be
= 
= 
= 0.2
We see that the cross price elasticity is positive. This means that the two goods are substitutes. When price of one good will increase consumers will prefer the cheaper substitute, increasing its demand.
Answer:
$140,000
Explanation:
The difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:
Variable costing:
Fixed manufacturing overhead in production $750,000
Absorption costing:
The Fixed cost would be
= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory
= $190,000 + $750,000 - $50,000
= $890,000
So, the difference would be
= $890,000 - $750,000
= $140,000
Answer:
differentiated by quality/design
Explanation:
In this scenario the two coffee shops have different strategies for sale. While Jackie's coffee is a sit down cafe with a waiter service that takes personalised orders, Johnny's coffee sells at various kiosks it owns.
These two businesses are differentiated by quality or design. Jackie's has more quality because of the personalised service provided to customers.
Jackie uses design of a sit down cafe in one location, while Johnny's business design is to sell coffee at various locations (kiosks)
