The calculations for the equipment purchase include a net present value (NPV) of $29,853.71, a payback period of 2.07 years, a discounted payback period of 3.86 years, and an accrual accounting rate of return of 35.94%.
To calculate the net present value (NPV), we need to discount the cash flows at the company's required rate of return of 10%. The present value factors can be obtained from the present value table.
Calculate the present value of cash flows:
Year 1: $80,000 / (1 + 0.10)¹ = $72,727.27
Year 2: $70,000 / (1 + 0.10)² = $57,851.24
Year 3: $50,000 / (1 + 0.10)³ = $37,190.08
Year 4: $30,000 / (1 + 0.10)⁴ = $22,085.12
Calculate the net present value:
NPV = Present value of cash inflows - Initial investment
NPV = $72,727.27 + $57,851.24 + $37,190.08 + $22,085.12 - $160,000
NPV = $29,853.71
To determine the payback period, we add up the cash flows until the cumulative amount exceeds the initial investment:
Payback period = Year before cumulative cash flow exceeds the initial investment + (Remaining amount / Cash flow in the following year)
Payback period = 2 + ($32,085.12 / $30,000)
Payback period ≈ 2.07 years
The discounted payback period is calculated similarly, but we use the discounted cash flows:
Discounted payback period = Year before cumulative discounted cash flow exceeds the initial investment + (Remaining amount / Discounted cash flow in the following year)
Discounted payback period = 3 + ($32,085.12 / $37,190.08)
Discounted payback period ≈ 3.86 years
The accrual accounting rate of return is calculated by dividing the average annual savings in cash operating costs by the net initial investment and expressing it as a percentage:
Average annual savings = ($80,000 + $70,000 + $50,000 + $30,000) / 4 = $57,500
Accrual accounting rate of return = (Average annual savings / Net initial investment) × 100
Accrual accounting rate of return = ($57,500 / $160,000) × 100
Accrual accounting rate of return ≈ 35.94%
Learn more about net present value here:
https://brainly.com/question/32720837
#SPJ11
1.Discuss scale of business -micro, small, and medium enterprises -Large scale enterprises and public enterprises -MNC
Answer:
The main difference between these business is the investment and number of people.
Explanation:
A micro enterprise is an enterprise where investment in plant and machinery is less than one million whereas small enterprise has the investment less than 15 million in plant and machinery. A medium enterprise is an enterprise where the investment in plant and machinery is more than 15 million and less than 100 million. Large scale enterprises is a type of enterprise have more employees and more complex management than in the medium-scale businesses. Public enterprise is a type of business organization wholly or partly owned by the state but controlled through a public authority.
Which resource can you use to view business or suppliers divided into different categories?
You may use online or offline (blank) to view businesses or suppliers classified into different categories.
Answer:
yellow pages
Explanation:
Answer:
It's "Yellow Pages"
Explanation:
I got it right!!
a company was formed with $60,200 cash contributed by its owners in exchange for common stock. the company borrowed $30,200 from a bank. the company purchased $10,200 of inventory and paid cash for it. the company also purchased $70,200 of equipment by paying $10,000 in cash and issuing a note for the remainder. what is the amount of the total assets to be reported on the balance sheet?
The total assets on the balance sheet will be $150,600
Cash from owners of $60,200 + Cash from the borrowing of $30,200 + Inventory purchased for $10,200 - Cash paid for an inventory of $10,200 + Equipment purchased for $70,200 - Cash paid for equipment of $10,000 = $150,600
An organization's assets, liabilities, and shareholders' equity are listed on a balance sheet at one particular time (as indicated at the top of the statement). One of the key records that go into a company's financial statements is this one.
A balance sheet provides you with a quick overview of your company's financial situation at any given time. A balance sheet, together with an income statement and a cash flow statement, may aid business leaders in assessing the financial health of their organization.
To learn more about balance sheet
https://brainly.com/question/26323001
#SPJ4
Read the sentence.
Because of the presence of many _[blank]_, California is a leader in entrepreneurship and innovation.
Which best completes the sentence?
A)court battles
B)wealthy investors
C)hardships
D)frontier people
Answer:
the correct answer is wealthy investors
Explanation:
I got a 100% on the test and answer D was icorrect the first time I took it.
Which of the following statements are correct?
Select the correct option(s) and click submit.
Agile and Design Thinking are same
Design Thinking is about Product Development. Agile Manifesto is about Software Development
Design Thinking is finding the right things and Agile is about building the right things
Design Thinking is building the right things and Agile is about finding the right things
Submit
Product Development is the focus of Design Thinking. The Agile Manifesto is concerned with software development.
Design Thinking is about discovering the right things, while Agile Manifesto is about creating the right things. Hence, option b) is correct.
Design thinking is a problem-finding methodology, whereas agile is a problem-solving methodology. It requires a high level of end-user empathy and comprehension, as well as an iterative process of developing new ideas, debunking assumptions, and redefinition of problems.
Agile Manifesto and Design thinking fosters a user-centric environment that emphasizes rapid iterations to achieve the best results. Use agile development to collaboratively build solutions to problems identified through design thinking.
Design thinking prioritizes the needs of the user, and Agile is an excellent method for delivering solutions gradually. The user's needs are considered throughout the design and development process.
To learn more about Agile Manifesto, please refer:
https://brainly.com/question/25820251
#SPJ4
EXAMPLE 1: invests $500 at a simple
interest rate of 6%. How much interest will he earn in
one month? In six months? In one year?
Selections, a general partnership, operates a gift shop. Selections has five partners. Tony has a one-third interest in the partnership. Each of the other partners has a one-sixth interest. With respect to management decisions
With respect to management decisions a majority of the partners must agree, irrespective of the size of each partner's interest in the partnership.
What is partnership?A partnership is an agreement in which two or more parties, known as business partners, agree to work together to advance their mutual interests. Individuals, businesses, interest-based organizations, schools, governments, or combinations can form partnerships.
A partnership is a single business owned by two or more people. Each partner contributes to every aspect of the business, whether it's money, property, labor, or skill. In exchange, each partner shares in the company's profits and losses.
The goal of a partnership agreement (or partnership contract) is to create a legally binding contract between two or more individuals or other legal entities in order to establish a business enterprise. This partnership agreement specifies each partner's or entity's rights and responsibilities.
To know more about partnership follow the link:
https://brainly.com/question/14034519
#SPJ4
Mason Milling grinds calcined alumina to a standard granular size. The mill produces two different size products from the same raw material. Regular Grind can be produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a price per ton of $900. Super Grind can be produced at a rate of 6,000 pounds per hour and has a demand 200 tons per week with a price of $1,900 per ton. A minimum of 700 tons has to be ground every week to make room in the raw material storage bins for previously purchased incoming raw material by rail. The mill operates 24/7 for a total of 168 hours/week. How many tons of each product must be produced each week to maximize revenue? (hint: be careful with units in this problem, ton, ton per week, ton per hour).
The mill should produce 700 tons of super grind and 0 tons of regular grind every week to maximize revenue.
The main aim of the problem is to find out the number of tons of each product that has to be produced per week to maximize revenue.
The regular grind is produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a price per ton of $900.The super grind is produced at a rate of 6,000 pounds per hour and has a demand of 200 tons per week with a price per ton of $1,900.To make room for the incoming raw materials, a minimum of 700 tons has to be ground every week.
According to the given conditions, we need to find out how many tons of each product should be produced per week to maximize the revenue.
Let the number of tons of regular grind be x. Let the number of tons of super grind be y.
Since a minimum of 700 tons has to be ground every week, the equation becomes:
x+y ≥ 700
The regular grind is produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week. Hence, we get:10,000x / 2,000 = 400x = 80/3 tons per hour
The super grind is produced at a rate of 6,000 pounds per hour and has a demand of 200 tons per week. Hence, we get:
6,000y / 2,000 = 200y = 100/3 tons per hour
Since the mill operates 24/7 for a total of 168 hours/week, the number of hours the mill operates to produce regular grind is given by:
80/3 * h ≤ 10,000
h ≤ 750
The number of hours the mill operates to produce super grind is given by:
100/3 * k ≤ 6,000k ≤ 1800/100 = 18
The total revenue generated can be given by:
R = 900x + 1900y
The problem is to maximize revenue. We can use linear programming to solve this problem:
Maximize R = 900x + 1900ysubject to:
x + y ≥ 70080/3x + 100/3y ≤ 168x ≤ 750y ≤ 18x ≥ 0, y ≥ 0
The feasible region is shown below:
graph{y≤-0.8x+168y≥0x≥0x+y≥700y≤18}
The vertices of the feasible region are (0, 700), (750, 0), and (522, 178).
We evaluate R at these points to see which one gives the maximum value of R.
R(0, 700) = 900(0) + 1900(700) = 1,330,000
R(750, 0) = 900(750) + 1900(0) = 675,000
R(522, 178) = 900(522) + 1900(178) = 938,800
Therefore, the maximum revenue is $1,330,000 when the mill produces 700 tons of super grind and 0 tons of regular grind.
Therefore, the mill should produce 700 tons of super grind and 0 tons of regular grind every week to maximize revenue.
To know more about maximize revenue, visit:
https://brainly.com/question/30883127
#SPJ11
Michelle docker has selected a Sonic Electric toothbrush that is on sale for 25% off. She also has a store coupon that reads "Take 15% off any already reduced price." How much will she pay for the toothbrush if she was originally Priced 79.99? What is the rate of Reduction?
The rate of reduction on the Sonic Electric toothbrush is 36.25%.
What is the rate of reduction?A sale and a coupon would reduce the price of an item.
Price of the toothbrush after the sales discount = original price x (1 - reduction)
$79.99 x (1 - 0.25)
$79.99 x 0.75 = $59.99
Now, we would determine the price of the toothbrush after the coupon has been used.
Price after coupon = reduced price x ( 1 - 0.15)
$59.99 x 0.85
= $50.99
Rate of reduction = [( final reduced price / original price)] - 1 x 100
[(50.99 / 79.99)] - 1 x 100 = 36.25%
To learn more about how to calculate discounts, please check: https://brainly.com/question/26061308
#SPJ1
Write a generalization about the relationship between price and the quantity supplied
Answer:
PRICE CHANGES
Price and quantity supplied are directly related. As price goes down, the quantity supplied decreases; as the price goes up, quantity supplied increases. Price changes cause changes in quantity supplied represented by movements along the supply curve.
Takisha conducted an experiment to determine the effect of salt on the boiling point of water. She measured the boiling points of 100 ml of water with salt added in 5 g increments. As a control, she also recorded the temperature of water with no salt added. What is the purpose of this control?.
The control gives a reference value for comparison to tests in which a variable is changed.
The impact of salt on the experiment with the water bubbling point is that the nearness of salt makes it more troublesome for water particles to elude from the pot and move into the gas stage, which happens when water boils.
Salted water contains a higher boiling point as a result of the experiment.
When salt is included in water, the water gets to be denser. Salt gives bulk to the water because it breaks up in it (more weight to the water). By making the water denser, more things that would ordinarily sink in new water can coast on the surface.
Since salt water warms up more rapidly and comes to its boiling point, to begin with, it'll boil more rapidly than immaculate water.
Learn more about the boiling point of water at
https://brainly.com/question/3609442
#SPJ9
Having a realistic pride in one’s abilities, accomplishments and goals is known as _______. a. success b. self-esteem c. self-efficacy d. assertiveness please select the best answer from the choices provided a b c d
Answer: The answer is C.) Self-efficacy
Explanation: Efficacy is described in the modern English Dictionary as "the ability to produce a desired or intended result."
Answer:
Option "b" is the correct answer
Every year, harini receives a check from the company in which she owns stock. what is the name for these periodic distributions of profits to investors?
It is dividends.
What is a Dividend?A dividend is the distribution of a company's earnings to its shareholders. This is determined by the company's board of directors. Dividends are usually distributed every three months and may be paid out in cash or reinvested in additional stock. Dividend yield is the dividend per share expressed as dividend/price as a percentage of the company's share price, e.g. 2.5%.Common shareholders of dividend-paying companies are eligible to receive a distribution as long as they own the stock before the ex-dividend date.A dividend is a payment of corporate earnings to shareholders who meet certain qualifications. The amount and frequency of dividend payments is determined by the company's board of directors.To learn more about Dividends from the given link
https://brainly.com/question/2960815
#SPJ4
Which of these can be considered “online banking?”
I. A brick-and-mortar bank that allows its customers to transfer money online.
II. A bank that has only a few branches but has customers depositing money online.
III. A bank that does not exist as a real building, but only has an internet presence.
Answer:
D
Explanation:
l, ll, & lll
All the given statements are examples of online banking. Thus, all the given statements are correct statements.
What is online banking?Online banking, often known as internet banking, online banking, or home banking, is a type of electronic payment system that allows clients of banks and other financial institutions to carry out a variety of financial transactions via the website of the financial institution. In order to offer consumers access to banking services in addition to or in substitute for traditional branch banking, the online banking system will normally link to or be a component of the core banking system run by a bank.
Online banking provides greater convenience to some customers by reducing the need to visit a branch bank and the convenience of being able to conduct banking transactions even when branches are closed. It also significantly lowers operating costs for banks by decreasing their reliance on a branch network.
Learn more about online banking, here:
https://brainly.com/question/12980617
#SPJ6
Dave borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of $5. What is the finance charge on this loan?
The finance charge on Dave's loan can be calculated by adding up the total amount of interest paid plus any fees charged by the bank. In this case, Dave paid $50 in interest and a $5 service charge. Therefore, the finance charge on his loan is $55.It's important to note that the finance charge only represents the cost of borrowing the money. It does not include the principal amount borrowed, which in this case was $500.
When Dave repays the loan, he will need to pay back the principal plus the finance charge.The interest rate on Dave's loan can also be calculated based on the amount borrowed and the amount of interest paid. To find the interest rate, divide the amount of interest paid ($50) by the amount borrowed ($500) and multiply by 100. This gives an interest rate of 10%.In summary, Dave's finance charge on his loan is $55, and the interest rate on his loan is 10%. It's important to understand these terms when taking out a loan to ensure you understand the total cost of borrowing and can make informed decisions about your finances. Hello! I'd be happy to help with your question.The finance charge on a loan is the total cost of borrowing money, which includes interest and other fees like service charges. In Dave's case, he borrowed $500 for one year and paid $50 in interest. Additionally, the bank charged him a service charge of $5.
To calculate the finance charge, we simply add the interest and the service charge together. In this scenario, the finance charge would be:
$50 (interest) + $5 (service charge) = $55
Therefore, the finance charge on Dave's loan is $55. This is the total amount he has to pay in addition to repaying the $500 principal.
Learn more about finance here
https://brainly.com/question/989344
#SPJ11
Buying one movie ticket online costs $16. 50. Two tickets cost $30. 50. Assuming that the relationship is linear, use the drop down menus to complete the recursive formula, the function to represent the cost c of n tickets bought online, and the domain of the function.
There is a mathematical structure to the price of movie tickets.
The recursive formula is C(n)= C(n-1) + 14The domain of the function is [0, ∞)Recursive rule: What does it mean?The first term or terms of a sequence are provided by a recursive rule, which then demonstrates how each term connects to the term(s) that came before it using a recursive equation. Recursive descriptions are possible for sequences in mathematics and geometry, for example. Illustration of an arithmetic sequence.
In a recursive formula, any term in a series can be defined by its previous term (s). For illustration: The recursive formula for an arithmetic series is a = an-1 + d. The recursive formula for a geometric series is An = An-1r.
The parameters are as follows:
one movie ticket's price= \(a_{1}\)= 16.50
two movie tickets at the price= \(a_{2}\)= 30.50
(a) The recursive formula
Express 30.50 as 16.50 + 14
\(a_{2}\)= 16.50+ 14
Substitute 16.50 to \(a_{1}\)
\(a_{2}\)= \(a_{1}\) + 14
\(a_{2}\)= \(a_{2-1}\) + 14
\(a_{n}\)= \(a_{n-1}\) + 14
Express as a function
C(n)= C(n-1) + 14
(b) The domain
Tickets sold cannot be less than zero.
the following is the function's domain: [0, ∞)
Learn more about arithmetic sequence: https://brainly.com/question/15412619
#SPJ4
1) Inflation represents the rate of increase of the average price of goods. If inflation decreases from 10% to 5%, does the average price of goods decrease? Explain.
No, the average price of goods does not decrease when inflation decreases from 10% to 5%.
Inflation represents the rate of increase in the average price of goods and services over time. When inflation decreases, it means that the rate of price increase has slowed down, but it does not imply a decrease in the average price itself. Even with a lower inflation rate, prices can still continue to rise, albeit at a slower pace.
The percentage of inflation indicates the extent of price increase compared to the previous period. If the inflation rate decreases from 10% to 5%, it means that prices are still increasing but at a slower rate. For example, if an item was priced at $100 at the beginning of the year, with a 10% inflation rate, its price would increase to $110. However, with a 5% inflation rate, the price would increase to $105. While the rate of increase has decreased, the average price of goods has not decreased.
Therefore, it is important to differentiate between a decrease in the inflation rate (a decrease in the rate of price increase) and an actual decrease in the average price of goods, which would indicate deflation.
Learn more about Inflation
https://brainly.com/question/31108471
#SPJ11
can someone help me? got till the end of the day :/
Answer:
A
Explanation:
Conducting a search of the store is part of store closing duties. Why?
The policy against poverty that provides the goods and services needed by the poor is O a. in-kind transfers. O b. negative income tax. O c. minimum wage. O d. Earned Income Tax Credit.
The policy against poverty that provides the goods and services needed by the poor is "in-kind transfers.
In-kind transfers (option a) refer to the provision of specific goods and services directly to individuals or households in need, rather than providing them with cash or income support. These transfers can include items such as food stamps, housing vouchers, healthcare services, and educational assistance.
The aim is to ensure that individuals have access to essential goods and services that can help alleviate their poverty and improve their quality of life.
In contrast, the other options listed do not specifically focus on providing goods and services to the poor. Negative income tax (option b) provides financial assistance to individuals whose income falls below a certain threshold.
Minimum wage (option c) sets a floor on the hourly wage rate that employers must pay, aimed at preventing excessively low wages.
The Earned Income Tax Credit (option d) is a tax credit designed to provide additional income to low-income individuals and families who are employed.
Learn more about Poverty:
brainly.com/question/29891503
#SPJ11
The size of a tax and the deadweight loss that results from the tax are.
The deadweight loss that results from the tax measures the economic loss that is caused by a new tax.
What is deadweight loss?
Deadweight loss of taxation simply measures the overall economic loss caused by a new tax on a product or service.
The deadweight loss analyses the decrease in production as well as the decline in demand that is caused by the imposition of a tax. In this case, it is a lost opportunity cost.
Learn more about tax on:
https://brainly.com/question/25783927
How to calculate momentum?
Answer:
p=mv
Explanation:
the formula for momentum is
p=mv
Answer:
By multiplying mass and velocity
Explanation:
What is a market economy?what are some disadvantages of living in a market economy? Explain
Answer:
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand.
Disadvantages:
A tendency for an inequitable distribution of wealth, poorer work conditions, and environmental degradation.Since profit maximization is the biggest motivation for firms, they may try to reduce their costs unethically. Unemployment and Inequality.
Can anybody please provide at least 2 reasons for:
1. Why adopted children should know their biological parents' identities
2. Why adopted children shouldn't know their biological parents' identities
Thanks for anybody who helps! And please ASAP!!!!!!!!
1. Why adopted children should know their biological parents' identities
- it creates a kind of reunion among the involved parties include the children, the biological parents, and the adopted parents
- they can locate and reunate if they want to, once they have grown up
2. Why adopted children shouldn't know their biological parents' identities
- they might get hurt by trying to find the truth
- if they know that they were just adopted they can feel less of themselves even though the adopted parents love them with all their hearts
roman money began to lose its value when __________.
Roman money began to lose its value when the Roman Empire faced economic challenges and various factors contributed to the debasement of its currency.
One significant event that led to the decline in the value of Roman money was the gradual debasement of the silver denarius, the primary currency of the Roman Empire. This debasement involved reducing the silver content in the denarius while maintaining its face value, effectively diluting the value of the currency. The debasement was a result of the empire's need to finance its expanding military, bureaucracy, and infrastructure projects.
The process of debasement began during the third century AD, as the Roman Empire faced economic instability and inflation. Emperors reduced the silver content in the denarius, leading to a decline in its purchasing power. This debasement was often accompanied by an increase in the number of coins minted, further exacerbating the problem. As a result, the value of Roman money eroded, and inflation became rampant.
The debasement of Roman money had severe consequences for the economy and society. Inflation eroded the savings of the population, causing a decline in purchasing power and living standards. It created economic uncertainty, hampered trade, and undermined the stability of the Roman Empire. The loss of confidence in the currency also affected tax collection and contributed to a decline in revenue for the government. Ultimately, the devaluation of Roman money was symptomatic of the economic and political challenges faced by the empire, which played a role in its eventual decline and fall.
Learn more about debasement here :
brainly.com/question/28298729
#SPJ11
name some differences between the requirements and responsibilities between volunteer,intern, and paid jobs
Answer:
The major difference between job shadowing and an internship is that you perform more duties as an intern than as a job shadow participant. Interns are hired for temporary positions, and they can be paid or unpaid. When you have. a job you are bing paid and normally have more responsibilities.
The General Ledger shows or
contains which of the following?
A. All of the Above
B. Liabilities
C. Assets
D. Shareholder's Equity
Answer:
A. All of the above
Explanation:
The General Ledger is the primary accounting record that shows a company's financial transactions. It contains all of the accounts that are used to record transactions, including assets, liabilities, shareholder's equity, revenue, expenses, gains, and losses.
The General Ledger provides a comprehensive view of a company's financial position and is used to produce financial statements such as the balance sheet, income statement, and cash flow statement. The information in the General Ledger is used by management, auditors, and other stakeholders to make informed decisions about the company's financial health and performance.
Which of the following statements most closely describes the variation in unemployment rates across countries in Europe?a. Countries with more generous unemployment insurance tend to have lower unemployment rates, but this effect is completely offset if benefits are offered for a longer period of time.b. Countries with higher rates of unionization tend to have higher unemployment rates and this tendency is exacerbated if wage negotiations are coordinated among employersc. Countries with more generous unemployment insurance benefits tend to have higher unemployment rates, but this is partially mitigated if the benefits are offered for a longer period of time.d. Countries with higher rates of unionization tend to have higher unemployment rates, but this is partially mitigated if wage negotiations are coordinated among employers.
The statement that most closely describes the variation in unemployment rates across countries in Europe is option c.
The statement that most closely describes the variation in unemployment rates across countries in Europe is option c. This means that countries with more generous unemployment insurance benefits tend to have higher unemployment rates, but this effect is partially mitigated if the benefits are offered for a longer period of time. The reason for this is that more generous benefits may disincentivize people from actively seeking employment, but if the benefits are offered for a longer period of time, it can give individuals more time to find a job. This is an important factor to consider when designing unemployment policies. It's worth noting that while higher rates of unionization can lead to higher unemployment rates, this effect can be partially mitigated if wage negotiations are coordinated among employers. Overall, it's important to strike a balance between providing support to those who are unemployed while also incentivizing them to seek employment.
To know more about unemployment rates visit: https://brainly.com/question/28097828
#SPJ11
because of the effects of diversification, the portfolio’s risk is likely to be smaller than the average of all stocks’ standard deviations.truefalse
Diversification is a technique that investors use to spread their investments across different asset classes, sectors, and geographical regions. By doing so, they can minimize the risk associated with investing in a single stock or asset class. So, the answer is true.
The principle behind diversification is that the portfolio's overall risk is reduced because the gains of some investments will offset the losses of others. This results in a portfolio that is less volatile and more stable than investing in a single stock or asset. In addition, the standard deviation of the portfolio is likely to be smaller than the average of all stocks' standard deviations. This is because the portfolio's risk is diversified across different assets, and the movements of one asset will not have a significant impact on the overall portfolio.
The standard deviation measures the degree of variability of returns from the average, and a smaller standard deviation indicates that the returns are more consistent and less volatile. Therefore, diversification can play a critical role in reducing portfolio risk and achieving better risk-adjusted returns. It is important to note that diversification is not a guarantee against losses, but it can help investors manage risk and improve their long-term investment outcomes.
For more such questions on Diversification
https://brainly.com/question/24126807
#SPJ11
Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
To learn more about Stocks follow the link.
https://brainly.com/question/14649952
#SPJ2