Answers
Answer:
yes
Explanation:
Explanation: Hope you get it right
Related Questions
The BEST way to __________________ a customer is right then and there at that moment!
Answers
Answer:
serve
Explanation:
hope that helps
(-)
Black, Inc. is a calendar-year corporation whose financial statements for 2014 and 2015 included errors as follows: PHOTO
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2014, or at December 31, 2015. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2016?
a. $154,000 increase
b. $46,000 increase
c. $19,000 decrease
d. $8,000 increase
Answers
Answer: a. $154,000 increase
Explanation:
An overstated closing inventory overstates Income as it understates Cost of Goods sold.
An overstated Depreciation understates Income as it overstates expenses.
2014 Income Overstatement (understatement) = 162,000 - 135,000
= $27,000
Net income overstated by $27,000 in 2014
An understated closing inventory understates Income as it overstates Cost of Goods sold.
An understated Depreciation overstates Income as it understates expenses.
2015 income overstatement (understatement) = 45,000 - 64,000
= -$19,000
Income understated in 2015 by $19,000
2015 Beginning inventory was $162,000 overstated which means income was understated by $162,000 in 2015.
Income should therefore be increased (decreased): Understatements - Overstatements
= 162,000 + 19,000 - 27,000
= $154,000
Becky wants to have $2,000 for spending money on vacation in 2 years. How much does she need to put in the bank today at 5% to have the the $2,000 in 2 years?
Answers
Answer:
the amount that need to put in the bank today is $1,814.059
Explanation:
The computation of the amount that need to put in the bank today i.e. present value is shown below
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$2,000 = Present value × (1 + 0.05)^2
$2,000 = Present value × 1.05^2
So, the present value is $1,814.059
hence, the amount that need to put in the bank today is $1,814.059
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period
Answers
Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance.The franchise company failed to live up to the value-driven principle of:_____
a. sharing information across the organization.
b. balancing customers' benefits and costs.
c. evaluating strategic competitive partnerships.
d. building relationships with customers.
e. keeping prices below those charged by competitors.
Answers
Answer:
a. sharing information across the organization
Explanation:
A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.
In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.
This is a failure in the function of sharing information across the organisation.
Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer
[The following information applies to the questions displayed below.]
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 59,200
Accounts Receivable 26,000
Allowance for Uncollectible Accounts 2,700
Inventory 36,800
Notes Receivable (5%, due in 2 years) 18,000
Land 160,000
Accounts Payable 15,300
Common Stock 225,000
Retained Earning 57,000
Totals $ 300,000 $ 300,000
During January 2018, the following transactions occur:
January 1. Purchase equipment for $20,000. The company estimates a residual value of $2,000 and a four-year service life.
January 4. Pay cash on accounts payable, $10,000.
January 8. Purchase additional inventory on account, $87,900.
January 15. Receive cash on accounts receivable, $22,500
January 19. Pay cash for salaries, $30,300.
January 28. Pay cash for January utilities, $17,000.
January 30. Firework sales for January total $225,000. All of these sales are on account. The cost of the units sold is $117,500.
Information for adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,100.
5. Accrued income taxes at the end of January are $9,500
Answers
Answer:
Since the requirements are missing, I believe that you need the adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
Dr Depreciation expense 375 ($18,000/4 x 1/12)
Cr Accumulated depreciation, equipment 375
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
Dr Bad debt expense 6,250
Cr Allowance for doubtful accounts 6,250
3. Accrued interest revenue on notes receivable for January.
Dr Interest receivable 75 ($18,000 x 5% x 1/12)
Cr Interest revenue 75
4. Unpaid salaries at the end of January are $33,100.
Dr Salaries expense 33,100
Cr Salaries payable 33,100
5. Accrued income taxes at the end of January are $9,500
Dr Income tax expense 9,500
Cr Income tax payable 9,500
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:
Answers
Answer:
$48
Explanation:
Calculation for the amount of cash in the fund before the replenishment
First step is to calculate the cash balance
Cash balance=$300-($80+160+$20)
Cash balance=$300-$260
Cash balance=$40
Now let calculate amount of cash in the fund before the replenishment
Cash before replenishment=$40+$8
Cash before replenishment=$48
Therefore the amount of cash in the fund before the replenishment is: $48
At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers.
Complete the following journal entry by selecting the account names and dollar amounts from the drop-down menus.
Date Account Title Debit Credit
Sept. 1 select select select
select select select
select select: select
Answers
Answer:
Debit Cash for $1,050; Debit Cash over and short for $9; and Credit Sales for $1,059.
Explanation:
The journal entries will look as follows:
Date Account Title Debit ($) Credit ($)
Sept 1 Cash 1,050
Cash over and short (w.1) 9
Sales 1,059
To record cash over and short for the day.
Working:
w.1: Cash over and short = Cash recorded - Actual cash collected = $1,059 - $1,050 = $9
In 2020, Monty Corporation had net cash provided by operating activities of $486,000, net cash used by investing activities of $976,000, and net cash provided by financing activities of $627,000. At January 1, 2020, the cash balance was $348,000. Compute December 31, 2020, cash. Cash, December 31, 2020
Answers
Answer:
Monty Corporation
Computation of Cash at December 31, 2020:
$485,000.
Explanation:
a) Data and Calculations:
Net cash provided by operating activities = $486,000
Net cash used by investing activities = (976,000)
Net cash provided by financing activities = $627,000
Net cash inflow = $ 137,000
January 1, 2020 Cash balance 348,000
December 31, 2020 Cash balance $485,000
b) The above implies that Monty made more (cash inflow) cash of $137,000 between January 1, 2020 and December 31, 2020. This is added to the January 1, 2020 cash balance to arrive at the December 31, 2020 cash balance.
Drag each term to the correct location on the table.
Identify dos and don’ts of creating a good résumé.
1. using underlined text to
denote section headings
2. including marital status
3. listing work experience
chronologically
4. using different bullet styles
5. making the résumé lengthy
6. listing technical competencies
Answers
Answer:
Creating a Good Résumé
Dos
1. using underlined text to denote section headings
3. listing work experience chronologically
6. listing technical competencies
Don’ts
2. including marital status
4. using different bullet styles
5. making the résumé lengthy
Explanation:
A good resume is a document that gives a brief summary of a job applicant's personal and professional experiences, skills, and education history. It is used in addition to a cover letter to show off your best self to potential employers. Important sections of a good resume include contact information, summary or objective, work experience, and education history.
If bonds are issued at a premium, the stated interest rate is a.higher than the market rate of interest b.too low to attract investors c.lower than the market rate of interest d.adjusted to a higher rate of interest
Answers
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest.
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
Jubilee's Bakery is budgeting cash for 2017. The cash balance at December 31, 2016, was $6,000. Jubilee's Bakery budgets 2017 cash receipts at $81,000. Estimated cash payments include $44,000 for inventory, $34,000 for operating expenses, and $15,000 to expand the store. Jubilee's Bakery needs a minimum cash balance of $13,000 at all times. Jubilee's Bakery expects to earn net income of $76,000 during 2017. What is the final result of the company's cash budget for 2017?
A. Must arrange new financing for $19,000
B. There is $19,000 available for additional investments.
C. Pay off $38,000 of debt.
D. There is $38,000 available for additional investments.
Answers
Answer: B. There is $19,000 available for additional investments.
Explanation:
Cash Receipts both Estimated and available
= Beginning balance + budget receipts
= 6,000 + 81,000
= $87,000
Cash payments
= 44,000 + 34,000 + 15,000
= $93,000
Additional financing required = Cash receipts - Cash payment - minimum cash balance
= 87,000 - 93,000 - 13,000
= -$19,000
Identify at least two ways in which the Apple corporate income statement differs from a partnership income statement.
Answers
Answer:
1. Salary attributable to a Partner
2. Interest on Capital
3. Share of Residual Profit
Explanation:
The Financial Statements for all businesses are prepared much in the same way in most respects. It is only after calculation of the Profit for the Year that a change may take place.
The Partnership should show a share of profit in a special account known as the Appropriation Account. Here the heading will be Salary attributable to a Partner, Interest on Capital and Share of residual Profit
The above items are only seem in the partnership income statement and not in a corporate income statement.
Which of the following would be considered a capital expenditure?
A. Paying interest on a construction bond from previous periods
B. Paying city inspection fees for new equipment
C. Making lease payments on assets used during construction
E. Making a mortgage payment for a new building
Answers
Answer:
B. Paying city inspection fees for new equipment
Explanation:
Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.
City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.
Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.
enabling bank feeds in quickbooks online accountant
Answers
When cities pass laws limiting the rent landlords can charge on apartments, the laws usually apply to existing buildings and exempt any buildings not yet built. Advocates of rent control argue that this exemption ensures that rent control does not discourage the construction of new housing. Evaluate this argument in light of the time-inconsistency problem.
Answers
Answer:
This situation represents an example of the time-inconsistency problem because the policymakers are likely to change their minds in the future, and either impose rent control to new housing as well, or to abolish all rent control laws.
In the first situation, the policymakers would be swayed by those arguing against the policy exception for new housing, while in the latter, the policymakers would simply find out that the policy is ineffective.
H has a group major medical coverage through his employer. H's premiums paid are:______
Answers
Answer:
H has a group major medical coverage through his employer. H's premiums paid are:______
non-taxable.
Explanation:
The premiums paid by H's employer on behalf of H are non-taxable employee benefits. They are also not taxable to H's employer as long as the amount is considered a reasonable business expense. According to the IRS, health insurance plans are not subject to Social Security, Medicare, and FUTA taxes, or federal income tax withholding.
After a significant economic recession, prices and investing activity in the stock market began trending consistently upward six years ago. In the last three months, this trend has reversed and prices have fallen steadily. How are the past three months of the stock market classified? a. Primary bear market b. Secular bull market c. Primary bull market d. Secular bear market
Answers
Answer: Primary bear market
Explanation:
A primary bear market is when the stock market has a downward movement of decline in price. Such decline in price usually takes place for about two months and above.
Also for a primary bear market, the price decrease is about twenty percent or more. This is typically caused by several economic ills like recession.
Yield rate to maturity for zero coupon bonds are currently quoted at 8.5% for one-year maturity, 9.5% for two-year maturity, and 10.5% for three-year maturity. Let i be the one-year forward rate, deferred one year, implied by current yields of these bonds.Calculate i.
Answers
Answer: 10.5%
Explanation:
As i is the one-year forward rate, it can be calculated thus:
= (1 + Two-year maturity rate)² / ( 1 + one-year maturity rate) - 1
= (1 + 9.5)²/ (1 + 8.5%) - 1
= 10.5%
Which statement below is true about the $75 Peter and his wife occasionally spend for two meals and drinks at a Korean barbecue restaurant since Peter was promoted, if the income elasticity for the expense is 2?
a. It is a substitute.
b. It is a luxury good.
c. It is a complement.
d. It is an inferior good.
Answers
Answer:
b. It is a luxury good.
Explanation:
Income Elasticity = 2
The Income Elasticity > 1. So, it is luxury goods. In economics, income elasticity for luxury goods is greater than 1 (i.e. Income Elasticity > 1). So option b is correct.
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
Direct Materials $4.00
Direct Labor $4.00
Variable manufacturing overhead $3.00
Fixed manufacturing overhead $1.00
Total Cost $12.00
The fixed overhead costs are unavoidable.
Assume Cruise Company can purchase 6300 units of the part from Suri Company for $14.20 each, and the facilities currently used to make the part could be used to manufacture 6300 units of another product that would have an $13 per unit contribution margin. If no additional fixed costs would be incurred, what should Cruise Company do?
Answers
Answer and Explanation:
Here we choose between the making and buying decision
The making cost is
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit
= $4 + $4 + $3
= $11
And, the buying cost is $14.20
So Cruise company should make the part and save the $3.20 cost i.e. come from
= $14.20 - $11
= $3.20
Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 10%. When she borrows the money, both she and Harry expect an inflation rate of 5%.
The expected real interest rate on the loan is _______ %.Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 2%. The actual real interest rate on the loan is ________ %.a. If the inflation rate turned out to be higher than expected, then:_________. b. But if inflation turned out to be lower than expected, then:________.
Answers
Answer:
The expected real interest rate on the loan is 5%.Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 2%. The actual real interest rate on the loan is 8%.
a. If the inflation rate turned out to be higher than expected, then: the real interest rate would be lower than expected.
b. But if inflation turned out to be lower than expected, then: the real interest rate would be higher than expected.
Explanation:
Expected real interest rate = nominal interest rate - expected inflation = 10% - 5% = 5%
Actual interest rate = nominal interest rate - actual inflation rate = 10% - 2% = 8%
A change in location with respect to a reference point is ___
PLEASE HELP!!!
Answers
Answer:
Motion.
Explanation:
Motion can be defined as a change in location with respect to a reference point.
This ultimately implies that, motion would occur as a result of a change in location (position) of an object with respect to a reference point or frame of reference i.e where it was standing before the effect of an external force.
Mathematically, the motion of an object is described in terms of acceleration, time, distance, speed, velocity, displacement etc.
Suppose you make $200,000 per year before the 3% raise. Rather than spend more money, you take your additional salary and buy $6,000 of Microsoft stock. Suppose the stock increases in value, and you can sell it next year for $6,600. Therefore, you have a $600 capital gain, or a 10% return on your investment. Suppose the tax rate on capital gains is 50%. After taxes, your capital gain is_______.
Given the scenario from Part 1, which of the following inflation costs have you experienced?
a. shoe-leather costs.
b. tax distortions.
c. wealth redistribution .
d. money illusion.
Answers
1. After the 50% taxes on your capital gain, your capital gain reduces to $300.
2. The inflation cost that you have experienced by paying a capital gain tax is c. wealth redistribution.
Wealth redistribution can occur when a part of a taxpayer's earnings is paid in taxes. The inflation costs witnessed in the scenario are not shoe-leather costs, tax distortions, or money illusion.
Data and Calculations:
Earnings per year = $200,000
Increase in earnings = 3%
Investment in Microsoft stock = $6,000
Proceeds from sale of investment = $6,600
Short-term capital gains = $600 ($6,600 - $6,000)
Assumed tax rate on the capital gains = 50%
Capital gain after taxes =$300 ($600 x (1 - 50%)
Thus, your net capital gain (after the deduction of capital gains tax of 50%) is $300.
Learn more: https://brainly.com/question/5719457
Bribery is the giving or taking of money or something of value to influence a private individual about a personal decision. true false
Answers
Answer:
the answer is true
Explanation:
when someone bribes you they want to give you something for something they want sone
Answer:
FALSE
Explanation:
Bribery is the giving or taking of money or something of value to influence a public official in the performance of his or her duties.
not a private person, thus the answer is false
Ordinary shares, RM20 par value (no change during the
year)
RM5,000,000
Preferred 10% stock, RM40 par (no change during the
year)
2,000,000
The net income was RM600,000, and the declared dividends on the ordinary
shares were RM125,000 for the current year. The market price of the ordinary
shares is RM20 per share
Answers
Answer:
a. earnings per share is RM1.60.
b. the price-earnings ratio is 12.50.
c. the dividends per share is RM0.50 and the dividend yield is 2.50%.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The following information was taken from the financial statement of Fine Resources for December 31 of the current year:
Ordinary shares, RM20 par value (no change during the year) was RM5,000,000
Preferred 10% stock, RM40 par (no change during the year) was RM2,000,000
The net income was RM600,000, and the declared dividends on the ordinary shares were RM125,000 for the current year.
The market price of the ordinary shares is RM20 per share.
Required:
Calculate for ordinary shares related to:
a. earnings per share
b. the price-earnings ratio
c. the dividends per share and the dividend yield
The explanation of the answer is now given as follows:
a. earnings per share
This can be calculated as follows:
Earnings per share = (Net income – Preferred dividend) / Number of ordinary shares …………… (1)
Where;
Net income = RM600,000
Preferred dividend = Preferred share value * 10% = RM2,000,000 * 10% = RM200,000
Number of ordinary shares = Total value of ordinary shares / Ordinary share per value = RM5,000,000 / RM20 = 250,000
Substituting the values into equation (1), we have:
Earnings per share = (RM600,000 – RM200,000) / 250,000 = – RM200,000 / 250,000 = RM1.60
b. the price-earnings ratio
This can be calculated as follows:
Price-earnings ratio = Market price per share / Earnings per share = RM20 / RM1.60 = 12.50
c. the dividends per share and the dividend yield
Dividends per share = Ordinary shares dividend declared / Number of ordinary shares = RM125,000 / 250,000 = RM0.50
Dividend yield = Market price per share / Dividends per share = RM0.50 / RM20 = 0.025, or 2.50%
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Direct labor-hours per unit 0.20 0.25
Number of units produced 10,000 40,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 4,000 4,000 8,000
Compute the unit product costs for the two products using the proposed ABC system.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
Answers
Answer:
Part 1
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads $5.60 $7.00
Unit product cost $18.60 $18.75
Calculation of overhead rate
M = 0.20 × 10,000 = 2,000
W = 0.25 × 40,000 = 10,000
Total hours = 12,000
Rate = $336,000 ÷ 12,000
= $28.00
Part 2
Overhead rate for direct labor-hours
Rate = $168,000 ÷ 12,000
= $14.00
Overhead rate for engineering design time
Rate = $168,000 ÷ 8,000
= $21.00
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads - labor hrs $2.80 $3.50
Overheads - eng time $8.40 $2.10
Unit product cost $24.20 $17.35
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows
Answers
Answer:
Investment X PV=$43,357.71
Investment Y PV=$37,666.45
Explanation:
The present value of future cash flows is the today's worth of those cash flows by virtue of discounting the cash flows to present time
The present value of a future cash flow=future cash flow/(1+discount rate)^n
n refers to the period in which the cash flow is expected , for instance,for year 1 cash flow n is 1, 2 for year 2 and so on.
Investment X:
PV=$6,100/(1+5%)^1+$6,100/(1+5%)^2+$6,100/(1+5%)^3+$6,100/(1+5%)^4+$6,100/(1+5%)^5+$6,100/(1+5%)^6+$6,100/(1+5%)^7+$6,100/(1+5%)^8+$6,100/(1+5%)^9=$43,357.71
Investment Y:
PV=$8,700/(1+5%)^1+$8,700/(1+5%)^2+$8,700/(1+5%)^3+$8,700/(1+5%)^4+$8,700/(1+5%)^5=$37,666.45
Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfaction Which report should a consultant recommend?
a. Average speed to answer
b. First contact resolution
c. Escalation rate
d. Average handle time
Answers
Answer: Average handle time
First contact resolution
Explanation:
Since the center manager needs to measure the productivity of the agent and the customer satisfaction, the report that should be recommended by a consultant would be the average handle time and the first contact resolution.
The average handle time shows the time taken for a transaction to be completed. This can be used to determine the productivity of agents. Also, first contact resolution can be used to determine customer satisfaction as it shows the number if queries that were successfully resolved.
Indicate whether each of the following actions represents foreign direct investment or foreign portfolio investment. Foreign Direct Investment Foreign Portfolio Investment Buying a corporate bond in a foreign country Opening up a factory in a foreign country Which of the following is more likely to engage in foreign direct investment?A. A corporation B. An individual investor
Answers
Answer: See explanation
Explanation:
A foreign direct investment is simply referred to as an investment that is made by an economic entity in one country into a particular business that is been situated in another country.
A foreign portfolio investment has to do with the holding of financial assets like bonds, stocks, and cash equivalents in another country.
Based on the.abive explanation,
Buying a corporate bond in a foreign country - This is a foreign portfolio investment
Opening up a factory in a foreign country - This is a foreign direct investment.
It should also be noted that a corporation is more likely to engage in foreign direct investment while the individual can engage in the foreign portfolio investment.