the risk that can be eliminated by diversification is called ________ risk, while the risk that remains even after diversification is called ______ risk.

Answers

Answer 1

The risk that can be eliminated by diversification is called "unsystematic risk," while the risk that remains even after diversification is called "systematic risk."

Unsystematic Risk: Unsystematic risk, also known as specific risk, diversifiable risk, or idiosyncratic risk, refers to the risk factors that are unique to a particular company or industry.

These risks are specific to individual assets and can be reduced or eliminated through diversification. Unsystematic risk arises from factors such as company management, industry-specific events, competitive dynamics, or other company-specific circumstances.

By diversifying investments across different companies, industries, or asset classes, investors can reduce unsystematic risk because the positive performance of some investments can offset the negative performance of others, reducing the overall impact of any one specific event or factor.

Systematic Risk: Systematic risk, also known as market risk or non-diversifiable risk, refers to the risk that is inherent to the entire market or an entire asset class. It cannot be eliminated through diversification because it is caused by factors that affect the overall market, such as macroeconomic conditions, geopolitical events, interest rates, inflation, or market sentiment.

Systematic risk affects a broad range of investments and is unavoidable. Even a well-diversified portfolio is still exposed to systematic risk. Investors are compensated for bearing systematic risk through the risk premium they receive for investing in the market.

To summarize, diversification can help mitigate unsystematic risk by spreading investments across different assets, which reduces the impact of company-specific events or circumstances. However, systematic risk cannot be eliminated through diversification because it is driven by market-wide factors that affect all investments.

Investors should be aware of both types of risks and consider their risk tolerance and investment objectives when constructing a diversified portfolio to manage their overall risk exposure effectively.

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Related Questions

hey besties i have a question i fw anime like i really do and i think i wanna cosplay but im like top tier popular so should i just like not I'm for sure gonna get bullied.

Answers

Answer:

ngl i am like "the popular girl" and i just live two lives i popular at school and anime obsessed at home lol

Explanation:

Honestly I just do what I want cuz why am I gonna please other people who don’t please me

a company with 300,000 authorized shares of $4 par common stock issued 120,000 shares at $8. subsequently, the company declared a 3% stock dividend on a date when the market price was $13 per share. what is the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend?

Answers

The amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend is $4,428.

To calculate the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend, we need to follow a few steps:

Calculate the total par value of the issued shares:

Total par value = Number of shares issued × Par value per shareTotal par value = 120,000 shares × $4 par value per shareTotal par value = $480,000

Calculate the value of the stock dividend:

Stock dividend = Total par value × Stock dividend percentageStock dividend = $480,000 × 3%Stock dividend = $14,400

Determine the number of additional shares issued as a result of the stock dividend:

Number of additional shares = Stock dividend value / Market price per shareNumber of additional shares = $14,400 / $13 market price per shareNumber of additional shares ≈ 1,107.69 (rounded down to 1,107 shares)

Calculate the par value of the additional shares:

Par value of additional shares = Number of additional shares × Par value per sharePar value of additional shares = 1,107 shares × $4 par value per sharePar value of additional shares = $4,428

Calculate the amount transferred from retained earnings to paid-in capital:

Amount transferred = Par value of additional sharesAmount transferred = $4,428

Therefore, the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend is $4,428.

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you have to wait until it says i posted it 1 minute ago if answer before u will be elminated 2 more to go

Answers

Answer:

GG

Explanation:

GG

Answer:

Yay I finally got to say something! Hi I hope you have had a good day! :) I would love to be brainliest because I never have been :')

Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high. Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,600 per month, and the rent is $1,800 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $750, but Koehl has agreed to maintain an average bank balance of $7,000 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.) The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $150,000. Sales Purchases December $120,000 $35,000 January 46,000 35,000 February 66,000 35,000 Prepare a cash budget for December, January, and February. Do not round intermediate calculations. Round your answers to the nearest dollar. Negative values, if any, should be indicated by a minus sign. Collections and Purchases: December January February Sales (Collections) $ $ $ Purchases $ $ $ Payments for purchases $ $ $ Salaries $ $ $ Rent $ $ $ Taxes $ --- --- Total payments $ $ $ Cash at start of forecast $ --- --- Net cash flow $ $ $ Cumulative cash balance $ $ $ Target cash balance $ $ $ Surplus cash or loans needed $ $ $ Suppose that Koehl starts selling on a credit basis on December 1, giving customers 30 days

Answers

The preparation of cash budgets for December, January, and February for Koehl's Doll Shop are as follows:

Koehl's Doll Shop

Cash Budget

                                                    December       January      February

Sales                                             $120,000        46,000        66,000

Total payments                            $169,400       $41,400       $41,400

Cash at the start of the forecast        $750            ---                   ---

Net cash flow                               ($49,400)       $4,600      $24,600

Cumulative cash balance           ($48,650)     ($51,050)    ($33,450)

Target cash balance                      $7,000        ($7,000)     ($7,000)

Surplus cash or loans needed  ($55,650)      $58,050    ($40,450)

What is a cash budget?

A cash budget is a projection of cash receipts and payments for a period.

Cash budgets may be prepared weekly, monthly, quarterly, or yearly, as required.

Management prepares cash budgets to guide its cash flow activities and decisions, readying to invest excess cash, request loans, or generate sufficient revenue to meet its short-term obligations.

Purchases for November = $150,000

                      Sales    Purchases

December $120,000   $35,000

January         46,000     35,000

February       66,000     35,000

Other cash payments:

Koehl's salary is $4,600 monthly

Rent is $1,800 monthly

Tax $13,000 in December

Thus, preparing a cash budget enables Dorothy Koehl to appreciate the timing of cash flows.

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Which of the following best explains the purpose of a supply schedule?
O A. To demonstrate how the supply decreases as price increases.
B. To calculate how much time it takes for distribution.
C. To show the relationship between quantity supplied and prices.
O D. To indicate how supply and demand relate to price.

Answers

Answer:

C. To show the relationship between quantity supplied and prices.

Explanation:

A supply schedule is a tabular demonstration of the quantity that suppliers will be willing to sell at different prices. It is a table showing the relationship between supply and price.

According to the law of supply, the supply increases as the price goes up. Therefore, the supply schedule is a tabular illustration of the law of supply.

Answer:

it is c

Explanation:

because    it does mean To show relationship between quantity supplied

and prices.

Sunset Acres reported net income of $58.0 million. Included in that number were trademark amortization expense of $2.7 million anc gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $1.6
million, $2.6 million, and $3.6 million, respectively.
Required: What were Sunset's cash flows from operating activities?

Answers

Sunset Acres had cash flows from operating activities amounting to $64.3 million.

To calculate the cash flows from operating activities, we start with the net income of $58.0 million. Then, we add back non-cash expenses and subtract non-cash gains. In this case, we add back the trademark amortization expense of $2.7 million and subtract the gain on the sale of land of $1.4 million. This accounts for the non-cash components of the net income.

Next, we consider the changes in working capital accounts. Decreases in accounts receivable, accounts payable, and inventory indicate that cash was received from customers, cash payments were made to suppliers, and cash was released from inventory. We subtract the decreases in these accounts from the net income.

The decreases in accounts receivable, accounts payable, and inventory amount to $1.6 million, $2.6 million, and $3.6 million, respectively. Subtracting these amounts from the net income, we get $58.0 million + $2.7 million - $1.4 million - $1.6 million - $2.6 million - $3.6 million = $64.3 million.

Therefore, Sunset Acres had cash flows from operating activities of $64.3 million.

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Has the Cannabis Act changed the way we view Cannabis in
Canada?

Answers

Yes, the Cannabis Act has changed the way we view cannabis in Canada. The Cannabis Act was introduced in Canada in 2018, and it legalizes recreational cannabis use across the country.

The legalization of cannabis has created a significant shift in how Canadians view cannabis. Canadians have a more positive view of cannabis, and the stigma around cannabis has reduced, which has made people more open to discussing its use. The Cannabis Act has also helped to regulate the cannabis industry, ensuring that the quality of the product is consistent, and that consumers are aware of the risks and potential side effects of using cannabis. The Act also prohibits the sale of cannabis to minors, and it provides penalties for those who violate the regulations.Overall, the Cannabis Act has been a significant step towards changing the way we view cannabis in Canada. It has reduced the stigma around cannabis and created a more positive view of the substance. The Act has also helped to regulate the industry, ensuring that consumers have access to safe and high-quality products. The legalization of cannabis has been a positive move for Canada, and it will continue to have an impact on the country in the years to come.

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According to Keynesian theory, what is the most important determinant of households' spending on goods and services

A) Autonomous consumption
B) Government spending
C) The price level
D) The interest rate
E) Disposable income

Answers

C bc I took and educated guess
The answer is C. The price level.

what are the barriers to cross-border trade in services? why do you think more progress has been made in reducing the barriers to trade in physical goods, as opposed to trade in services?

Answers

The barriers to cross-trade in services are many in this contemporary world. Such as patent rights, government protectionism, legal formalities, etc.

Cross-border trade refers to the exchange of goods and services between different countries. It is a vital component of international trade and plays a critical role in global economic growth. The expansion of cross-border trade has been driven by globalization, advancements in transportation, and communication technologies.

In economics, cross-border trade is essential as it helps countries specialize in the production of goods and services, thereby increasing efficiency and productivity. Countries can take advantage of their comparative advantage and export goods that they produce efficiently while importing goods that they cannot produce efficiently. This results in greater availability of goods at lower prices, leading to higher standards of living for individuals.

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In general, business writing should be _____.

Answers

Business writing is important in the business community. The writing style and material must be specific in order to elicit a meaningful reaction and be expressive in nature.

What is a company definition in a nutshell?

A business is described as a company or organisation that engages in commercial, industrial, or professional activity. Companies can be either for-profit or non-profit organisations. Limited liability firms, sole proprietorships, corporations, and partnerships are all examples of business structures. The introduction to the business plan provides a basic summary of the business plan, including a brief company description, aims and objectives, and the reason for launching the firm.

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1. A citywide requirement on mask use in all indoor spaces, regardless of how many people were inside and what the facility was used for, is an example of a _______ decision.
a. employee-based b. customer-based c. programmed d. non-programmed
2.
In the SWOT analysis, Threats are identified based on the
External environment
Sales data
Internal environment
Political environment

Answers

A citywide requirement on mask use in all indoor spaces, regardless of the number of people or the facility's purpose, is an example of a programmed decision.

In a SWOT analysis, Threats are identified based on the external environment.

The citywide requirement on mask use in all indoor spaces, regardless of the number of people or the facility's purpose, is an example of a programmed decision. Programmed decisions are routine and repetitive, based on established rules and procedures.

In this case, the decision to enforce mask use is implemented consistently across the entire city, following a predetermined policy. It does not require individual judgment based on specific circumstances or unique conditions. Instead, it is a standardized response to a common situation, aiming to ensure public health and safety.

In a SWOT analysis, Threats are identified based on the external environment. SWOT analysis is a strategic planning tool used to evaluate an organization's strengths, weaknesses, opportunities, and threats. While strengths and weaknesses are internal factors, opportunities and threats are external factors.

Threats refer to the potential risks or challenges that an organization may face from external sources, such as competitors, market trends, regulatory changes, economic conditions, technological advancements, or political factors. By analyzing the external environment, including market conditions, industry trends, and competitive landscape, organizations can identify potential threats that may impact their operations, profitability, or overall performance.

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ECONOMICS QUESTION: Ashley comes up with an idea that she patents, what kind of monopoly does she have?
a. Government monopoly
b. Cartel
c. Technological monopoly
d. Natural monopoly

Answers

Answer:

i think C

Explanation:

inclusion of mushroom in the food of Nepalese people can fulfill the nutrients requirement .justify the statement​

Answers

Yes, the inclusion of mushrooms in the food of Nepalese people can fulfill the nutrient requirement.

The maximum amount of nutrients in 100 g of dry matter of the studied mushroom species is 90% moisture, 15% fiber and ash, 8% carbohydrates, 12% amino acids, 32% protein, and 2.5% fat.

These mushrooms contain large amounts of minerals such as sodium, potassium, calcium, iron, and phosphorus. It can also reduce your risk of developing serious health conditions such as Alzheimer's, heart disease, cancer, and diabetes. It's also a great source of information about Selenium.

Mushrooms have antibacterial properties, strengthen the immune system and lower cholesterol levels. They are also an important source of bioactive compounds. Because of these properties, some mushroom extracts have been used to promote human health and have been found as dietary supplements.

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The criteria that the weather channel uses to rate employees is based on the individual's perceived capabilities to orchestrate and apply combinations of knowledge, skills, and abilities consistently over time, also known as

Answers

I think the answer is Behavior

Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments during December 2021: 1. Two hundred and thirty of Donald Company's $1,000 bonds. The bonds pay semiannual interest, return principal in 12 years, and include no other cash flows or other features. Feherty plans to hold 90 of the bonds to collect contractual cash flows over the life of the investment and to hold 140, both to collect contractual cash flows but also to sell them if their price appreciates sufficiently. Subsequent to Feherty's purchase of the bonds, but prior to December 31, the fair value of the bonds increased to $1,030 per bond, and Feherty sold 90 of the 140 bonds. Feherty also sold 30 of the 90 bonds it had planned to hold to collect contractual cash flows over the life of the investment. The fair value of the bonds remained at $1,030 as of December 31, 2021. 2. $26,800 of Watson Company common stock. Feherty does not have the ability to significantly influence the operations of Watson. Feherty elected to account for this equity investment at fair value through OCI (FVOCI). Subsequent to Feherty's purchase of the stock, the fair value of the stock investment increased to $33,600 as of December 31, 2021. Required: 1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and Watson stock 2. For each of the following categories of Feherty's investments, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021: (a) any Donald bonds accounted for at amortized cost that were purchased and held at year end, (b) any Donald bonds accounted for at amortized cost that were purchased and sold, (c) any Donald bonds accounted for at FVOCI that were purchased and held at year end, (d) any Donald bonds accounted for at FVOCI that were purchased and sold, and (e) the Watson stock. Ignore interest revenue and taxes.

Answers

- Net income effect: $3,600 (realized gains from bond sales)
- Other comprehensive income effect: $8,300 (unrealized gains from Donald bonds and Watson stock)
- Comprehensive income effect: $11,900 (sum of net income and other comprehensive income effects)

1. When Feherty acquired the Donald bonds and Watson stock, they would account for them as follows:
- The 90 Donald bonds held to collect contractual cash flows would be accounted for at amortized cost.
- The 140 Donald bonds held to collect contractual cash flows and for potential sale would be accounted for at fair value through other comprehensive income (FVOCI).
- The Watson stock investment would be accounted for at fair value through other comprehensive income (FVOCI), as Feherty elected this method and has no significant influence over Watson Company.

2. The effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021, are as follows:

a) Donald bonds at amortized cost (purchased and held):
- No realized or unrealized gains/losses, as they are accounted for at amortized cost.

b) Donald bonds at amortized cost (purchased and sold):
- Realized gain: 30 bonds * ($1,030 - $1,000) = $900
- Net income effect: $900
- No effect on other comprehensive income or comprehensive income, as gains/losses are recognized in net income.

c) Donald bonds at FVOCI (purchased and held):
- Unrealized gain: 50 bonds * ($1,030 - $1,000) = $1,500
- Other comprehensive income effect: $1,500
- Comprehensive income effect: $1,500

d) Donald bonds at FVOCI (purchased and sold):
- Realized gain: 90 bonds * ($1,030 - $1,000) = $2,700
- Net income effect: $2,700

e) Watson stock:
- Unrealized gain: $33,600 - $26,800 = $6,800
- Other comprehensive income effect: $6,800
- Comprehensive income effect: $6,800

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What is the purchase price of a
$1,000, 7.5% bond with semiannual coupons redeemable at
par in 10 years if the bond is bought
to yield 6% compounded semiannually?

Answers

If the coupon rate is 7.5%, and it is redeemable at par in 10 years, then the purchase price of the bond is $1,023.10.

How to find?

The bond is purchased to yield 6% compounded semi-annually. We need to calculate the purchase price of the bond.

Formula for calculating the present value of a bond

\(P = C × (1 - (1 + r)-n / r) + FV / (1 + r)n\)

where, P = Present value of the bond

C = Coupon payment

r = Discount rate (yield)

FV = Face value of the bond

n = Number of years

Coupon payment C = Coupon rate × Face value / 2

Coupon payment C = 7.5% × 1,000 / 2

= $37.50

Discount rate r = Yield / 2

Discount rate r = 6% / 2

= 3%

Number of years n = 10 years × 2

= 20P

= 37.5 × (1 - (1 + 0.03)-20 / 0.03) + 1,000 / (1 + 0.03)20P

= $1,023.10.

Thus, the purchase price of the bond is $1,023.10.

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On July 9, Mifflin Company receives a $10,100, 90-day, 12% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note? Multiple Choice Debit Notes Receivable $10,501; credit Interest Revenue $401; credit Accounts Receivable $10,100. Debit Notes Receivable $10,403; credit Sales $10.403 Debit Notes Receivable $10,100: credit Accounts Receivable $10,100. Debit Notes Receivable $10,100; credit Sales $10,100. Debit Accounts Receivable $10,100, credit Sales $10,100.

Answers

On July 9, the Mifflin Company receives a $10,100, 90-day, 12% note from customer Payton Summers as payment on account. The entry that should be made on July 9 to record receipt of the note is:

Debit Notes Receivable $10,100

Credit Accounts Receivable $10,100.

A note receivable is a debt owed by the borrower of a note to the holder of the note. It is documented by a legal instrument that specifies the terms of the debt, including the amount owed, the interest rate, and the maturity date. The note's maturity date specifies when the debt must be paid, and interest may be charged on the debt until that date arrives.

The maturity date of this 90-day note is 90 days after the date of receipt, which is July 9th. It means that the note's maturity date is October 7th, which is 90 days after July 9th.

Therefore, on July 9th, the Mifflin Company would record the following entry:

Debit Notes Receivable $10,100

Credit Accounts Receivable $10,100.

This is the correct entry to record receipt of the note because the company received a promissory note from the customer, which is a note receivable. This note is to be repaid in 90 days, and it is documented by a legal instrument that specifies the terms of the debt. As a result, the company would debit Notes Receivable and credit Accounts Receivable.

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An environmental lawyer is not part of the Energy cluster.
True or False for K12

Answers

Answer:

True

Explanation:

Lawyers belong to the Law, Public Safety, Corrections, and Security cluster.  Work under this career cluster revolves around protecting citizens and their rights.  Lawyers train and acquire university degree before training at the law school.

Lawyers may specialize in a specific area such as crime, tax, environment, and so many others. Other prominent job titles for lawyers include Attorney General,  Associate Attorney, Attorney, Attorney at Law, General Counsel, and Partner.

What is the usage index for households buying Completely Nutsbrand peanut butter?

Answers

The usage index for households buying Completely Nuts brand peanut butter is a measure of how often the product is purchased compared to the average product in the category.

The usage index is calculated by dividing the number of households purchasing the product by the total number of households in the category and multiplying by 100.

For example, if 50 households purchase Completely Nuts brand peanut butter and there are 1,000 households in the category, the usage index would be (50/1000) x 100 = 5. This means that Completely Nuts brand peanut butter is purchased 5% as often as the average product in the category.

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hello , What are three common tools for qualitative research in business and marketing?

Answers

Answer:

they would be in-depth interviews, focus group discussions and observation over data

Explanation:

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two historical leaders who practiced different leadership styles

Answers

Self-assured and endearing are traits of charismatic leaders.

Transformative leaders solicit supporters with ideas.

What is leadership?

Leadership is crucial because it encourages, inspires, and sets an example for others to make the country a safer place. Managers include a vision, offer a course of action, and cultivate a close bond with her followers.

The primary driver that separates the two is that, whereas charisma is centered on the leader, Transformative performance is constructed around like ideas and typically incorporates involvement from the current roster, not only the leader.

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88 million people live on less than $1. 00 a day. These people are said to be living in _____________.

Answers

88 million people live on less than $1. 00 a day. These people are said to be living in absolute poverty.

Poverty is about no longer having enough money to fulfill primary wishes which include meals, garb and safe haven. but, poverty is extra, an awful lot more than just now not having enough cash. the arena bank corporation describes poverty in this manner: “Poverty is hunger. Poverty is loss of safe haven.

We will outline poverty as the circumstance in which the fundamental needs of a own family, like meals, refuge, clothing, and schooling are not fulfilled. it is able to lead to different troubles like poor literacy, unemployment, malnutrition, and so on. A terrible individual is not capable of get education due to lack of cash and consequently stays unemployed.

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6. How will a court decide whether it should order Berner to refrain from using the term
air door?

Answers

Air curtains are frequently used to keep flying pests, dust, debris, and wind out of a building. Air curtains form an air barrier between the conditioned interior air and the outside air.

What is the purpose of an air door?

An air curtain, also known as an air door, is a machine that creates an air seal by blowing a controlled stream of air across an opening to the other side. This seal separates two environments while allowing for a continuous flow of traffic and unobstructed vision through the opening.

To lock or unlock, simultaneously press and hold the left and right arrows for 5 seconds; the Locked light will illuminate. If the PASScode option is enabled, any attempt to unlock the control will result in the display of PASS followed by a 0000 prompt for a four-digit unlock code.

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The wearing away of the Earth's surface is called​

Answers

Answer:

Erosion is the wearing away of the Earth's surface.

Which of the following is not a dimension of service quality?
a. Tangibles
b. Reliability
c. Responsiveness
d. Assurance
e. Sympathy

Answers

The correct answer is (e) Sympathy.The dimensions of service quality are the key attributes that customers use to evaluate service quality.

The most commonly used dimensions of service quality are:

a. Tangibles: Physical facilities, equipment, and appearance of personnel.

b. Reliability: Ability to perform the promised service dependably and accurately.

c. Responsiveness: Willingness to help customers and provide prompt service.

d. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.

These dimensions were originally identified by A. Parasuraman, Valarie A. Zeithaml, and Leonard L. Berry in their SERVQUAL model, which is widely used to measure service quality.

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Eliza Conner owns a small clothing boutique. Eliza uses her personal checking account for both business and personal needs. How would you convince Eliza that she should open a separate
bank account for her business?

Answers

Answer:

1. It will cause them confusion throughout the tax calculating process.

2. Using a single account will make it difficult to keep payroll records.

3. Keep track of your personal expenses and earnings.

Explanation:

1. It is preferable to establish a separate account to separate the firm's actual income and expenses.

2. Payroll expenses are indistinguishable from personal expenses.

3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.

If a supply shock dramatically increases the prices of domestic goods in China, the American dollar will _____ and the Chinese yuan will ____.
depreciate, depreciate
depreciate, appreciate
appreciate, depreciate
appreciate, appreciate
unknown, depreciate

Answers

appreciate, depreciate

Is a U. S. Citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company. The assignment began this year. Roquan earned $109,500 working for the French company this year but only lived in France for 180 days (out of 365 days). He will live full time in France next year. What amount of Roquan's $109,500 salary this year will he be allowed to exclude from gross income in the United States? Note: Round your answer to the nearest hundred dollars

Answers

Roquan will be able to exclude a portion of his salary from gross income in the United States for the year, based on the Foreign Earned Income Exclusion.

What is income?

Income is the money earned through wages, investments, business activities, or other sources of revenue.

This exclusion applies to U.S. citizens who are living abroad for an extended period of time, and allows them to exclude up to a certain amount of their income from gross income for federal tax purposes. For the 2020 tax year, the maximum amount of income that can be excluded is $107,600.

Therefore, Roquan can exclude up to $107,600 of his $109,500 salary from gross income in the United States. Since he only lived in France for 180 days this year, he will only be able to exclude a portion of the $107,600 based on the number of days he was abroad. This portion can be calculated by taking the total number of days (365) and dividing by the number of days he was abroad (180). This gives a fraction of 0.4931. Multiplying this fraction by the maximum exclusion of $107,600 gives an exclusion of $53,100.

In summary, Roquan will be allowed to exclude $53,100 of his $109,500 salary this year from gross income in the United States.

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since october 2008, the federal reserve has paid interest on excess reserves held by banks. under these circumstances, if the fed buys treasury securities worth $100 million from a bank, how will the money supply be affected? assume that the required reserve ratio is 10% and that all currency is deposited into the banking system.

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If the Fed buys $100 million worth of Treasury securities from a bank, the bank's excess reserves will increase by $100 million. Under the current policy, the Fed pays interest on these excess reserves, which gives banks an incentive to hold onto them instead of lending them out.

As a result, the money supply is unlikely to be affected by this transaction. However, if the bank did decide to lend out some of its excess reserves, the money supply would increase. Assuming a required reserve ratio of 10%, the bank would be required to hold $10 million in reserves and could potentially lend out the remaining $90 million. This increase in lending would increase the money supply by a multiple of the initial $100 million transaction, depending on the reserve ratio and the level of demand for loans in the economy.

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Type the correct answer in the box. Spell all words correctly.
Ideally, what should more than one member of the family contribute to for a better financial position?
A family can have more than one person contributing to the household _______
for a better financial position.

Answers

A family can have more than one person contributing to the household income for a better financial position.

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