Law and regulaltion are governed by the nature of business the entity is involved.Regulation may not be the same for different type of entity working in same business Say Trading goods. In the similar way the companies are govered by the companies regulation and bank i.e. financial institution are govered by banking regulation.
5. Since finance companies seemingly operate in the same market as traditional banks, why are they...
2 of 5 5. Depository institutions include: a. Banks b. Thrifts c. Finance companies d. All of the above e. a and b only Answer: 6. Which of the following observations concerning hedge funds is NOT true? They are pooled investment vehicles. b. They are subject to less regulatory oversight compared with mutual funds. c. They usually take significant risk. d. They have to disclose their activities to third parties. Answer: 7. What is common to both hedge funds and...
Give 5 reasons why companies opt for market segmentation
Question 1 Why are firms that operate under the “perfect competition market structure” considered to be price takers? Question 2 Is it ever possible for a firm to have a negative accounting profit at the same time it is experiencing a positive economic profit? Explain. Question 3 What is the connection between implicit costs and opportunity costs? Question 4 When business firms are able to control their basic costs, is success assured? Why or why not? Question 5 Why...
Two similar companies had been competing since they first opened for business in the same year, 2013. At the end of 2016, Elemental Corporation reported assets of $42,500 and Stockholders Equity of $17,325. Blackman Enterprises reported assets of $125,000 and liabilities of $53,500. a. Which company had the greater reported liabilities, Elemental or Blackman? b. Which company provides a better investment opportunity? Why?
1. What does Investment Management include? 2. Why do corporations and banks use the money market? 3. Why are T-bills considered among the safest investments? 4. Why corporate bonds usually have higher interest rates than government bonds? 5. Which kind of bonds is typically issued by start-ups and why?
BUSINESS ORGANIZATION A ND FINANCE Business Enterprise in the Free-Market System Large multinational corporations (companies with business ventures in various countries) have emerged as one of the most creative and powerful interna- tional institutions of the 20th century. In this chapter, we shall investigate corporations and other ways of organizing and financing business enterprises in Canada. Our investigation begins with this political cartoon. Although some critics suggest that multinational corporations use their power and size to secure greater returns on...
CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. A: Which of the following best describes the reason RTE Telecom Inc. has decided...
11. Since a small company is hard to finance and earn money, a government used to implement various policy of Inclusive finance to support their operations. In order to support this policy, each bank provide special borrowing rate for small companies to finance. The borrowing rate is 3% annually compounding, 2.6% semiannually compounding, 2.8% quarterly compounding, 1.5% semiannual rate, 0.75% quarterly rate for Bank A, Bank B, Bank C, Bank D, and Bank E respectively. Which bank will support mostly...
4. Suppose 1,000 identical suppliers of bottled water operate in a perfectly competitive market. The market demand for their water is given by the equation: Q-10,000-200P, or P-50-.005Q where Q is the number of gallons of water demanded each day by consumers of bottled water, and Pis the price per gallon a. If the marginal cost to each supplier was constant at $I per gallon, how many gallons of water would sell in this market? How many would each supplier...
A. Why is market efficiency a good thing for investors? (5 marks) B. Describe two style-based anomalies and give your opinion on why they persist? Said another way, given that people know they exist why do they not disappear? (5 marks) C. What is Prospect Theory? Explain how it affects investors' decision-making process. (5 marks) D. If an investment has a Sharpe ratio of 2, what is this telling us? Explain why the Sharpe Ratio is an important metric in...