Rhanda Merchandising Inc.
Income Statement
Total revenue $2,980,000
-Cost of goods sold ($1,520,828)
Gross profit $1,459,172
-Depreciation expense ($250,000)
Operating profit $1,209,172
Gain on condemnation of company property $266,000
-Loss of assets from meteor strike ($656,000)
Income from continuing operations before taxes $819,172
-Income taxes ($207,000)
Income from continuing operations after taxes $612,172
Gain from discontinued operations $755,000
-Loss from discontinued operations ($475,000)
Net income $892,172
Answer:
d. A higher level of risk corresponds to a smaller potential investment.
Explanation:
Regarding speculation, risk is defined by the variability of returns. The discrepancy between expected outcomes and actual results is referred to as risk. In this instance, Sandy believes there exists a positive relationship between the likelihood of risk and returns. For instance, if the risk is elevated, the chance of achieving returns rises. Conversely, reduced risk implies lower chances of earning returns.
Sandy prefers to assert that with elevated risk comes lesser investment possibilities, since the fluctuation of returns is substantial. This suggests that investors may aim for guaranteed returns rather than uncertain but potentially larger yields. In the realm of investments, it is a common question; some may agree that higher risk leads to lower maximum investments.
Thus, the answer is option D.
If a statement claims that greater risk leads to larger potential returns, it does not guarantee that the investor will indeed realize larger returns with their investments. The chances might be present for larger earnings, but obstacles also accompany such opportunities.
Answer:
The correct choice is option b.
Explanation:
The assertion in option ''b" effectively highlights the primary concept while minimizing the significance of the peripheral points, specifically;
"First, please make modifications to the second section of the proposal changes, and afterward, have Jane review the entire proposal."
This statement provides comprehensive step-by-step directives or stipulations;
1." Initially, make alterations to the SECOND SECTION of the proposal changes.''
The SECOND SECTION referred to by the author prioritizes the proposal CHANGES IN THAT SECTION AS OPPOSED TO THE WHOLE DOCUMENT.
2. "and then have Jane proofread the ENTIRE proposal"
The author intends for Jane to review the ENTIRE proposal for proofreading.
