185 Best Finance Questions and Answers (Q&A) - ProProfs Discuss

What is not true of the Automatic Reinvestment Plan?

Kaushalmandalia
Answered: Apr 18, 2024

The benefit of automatic reinvestment is often lost, if reinvestment is subject to a heavy load

1 Answer

474 views

What is the difference between Capital Expenditure and Revenue Expenditure?

H. Jones, Web Content Writer
Answered: Sep 11, 2019

Capital expenditure refers to expenses made by a business to acquire an asset or to better the capacity of assets. Examples include purchasing machines, buildings, vehicles, and so on. Such...Read More

4 Answers

442 views

What kind of expense should the royalties paid to be reported as?

John Smith
Answered: Apr 18, 2024

In the period incurred. -under accrual accounting, events that change an entitys financial position are recorded in the period in which the events occur. this means revenues are recognized when...Read More

1 Answer

437 views

Do most companies pay dividends semi-annually?

J.Barbara
Answered: Mar 07, 2018

It really depends on the decision and policies of a company. Certain factors such as the custom of the country will likely also affect the way companies pay dividends to their stockholders. In...Read More

2 Answers

413 views

What may occur here?

E.Ronald
Answered: Jan 03, 2018

When do you sell a share of stock? Well, if you lose 10 per cent of your stock investment, it’s a good idea. You usually buy stock when it is cheap. Has something changed? Maybe you want to...Read More

2 Answers

398 views

Why would shareholders approve and disapprove of reinvesting profits?

Ellie_May_Doll
Answered: Feb 25, 2017

Shareholders may dislike the business to reinvest profits as their dividend payments will be reduced causing shareholders to become unhappy, which means that shareholders may sell their shares...Read More

2 Answers

397 views

Why is the choice of a risk measure for internal and external risk of great practical importance?

Greg.eppes
Answered: Apr 18, 2024

It determines the minimum reserve requirements in financial trading.

B It determines the minimum reserve requirements in financial trading. Different measures can result in a lower or...Read More

1 Answer

386 views

Why is it important to educate yourself about personal finance as a student?

Malcolm Carneal, Digital Nomad
Answered: Aug 28, 2018

When people are young, they need to become educate about the world around them. One way to do this is with their personal finances. Parents really should begin that process when the student is...Read More

2 Answers

379 views

What is the subscription price of a right currently trading ex-rights?

John Smith
Answered: Apr 18, 2024

$74.75-to answer this question, one must know what the formula is for calculating the intrinsic value when trading ex rights. from the text:intrinsic value = (market price subscription price) /...Read More

1 Answer

372 views

How is Euro currency market regulated?

S. Hughes
Answered: Jun 14, 2018

The Eurocurrency market is regulated much differently than an individual country’s money markets or banks. It has also been said that this market “provides the most convenient...Read More

2 Answers

361 views

How do ethics relate to risk management?

Greg.eppes
Answered: Apr 18, 2024

The best form of risk management is adherence to business ethics.

The best form of risk management is adherence to business ethics. Every breach of business ethics represents a potential...Read More

1 Answer

353 views

What is the difference between Exponential Growth and Exponential Decay?

Bergeront Tiffney, Computer Engineer
Answered: Jun 18, 2019

Exponential growth is used when the base of the exponential is known to be larger than 1. This will make the numbers that are already listed there to become more prominent. It can be considered...Read More

2 Answers

345 views

What is the difference between Relevant Cost and Irrelevant Cost?

G. Horace, Content Developer
Answered: Jul 04, 2019

Relevant cost is a term that is found in accounting. There are other names for relevant cost, including differential cost and avoidable cost. A relevant price is one in which the other types of...Read More

1 Answer

345 views

What does a higher interest rate induce people?

Jeffusmc
Answered: Apr 18, 2024

A. save more, so the supply of loanable funds slopes upward.

1 Answer

345 views

What is the difference between BCP and DR?

Larry Thornton, Student
Answered: Nov 28, 2019

DR and BCP are different kinds of plans used by organizations at certain times. DR is the acronym for Disaster Recovery. This type of plan is commonly used after a disaster has occurred. This...Read More

3 Answers

323 views

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