98 points economic questions

3. what is simple interest? (0.5 points)

4. what is compound interest? (0.5 points)

5. what is the time value of money? (0.5 points)

6. name a strategy for saving money. (0.5 points)

lesson 2 (3.0 points)
1. what is investing? (0.5 points)

2. what is financial risk? (0.5 points)

3. what is diversification? (0.5 points)

4. what is risk tolerance? (0.5 points)

5. what are debt investments? (0.5 points)

6. what are equity investments? (0.5 points)

lesson 3 (3.0 points)
1. what are stocks? (0.5 points)

2. what are bonds? (0.5 points)

3. what is fraud? (0.5 points)

4. what is an annuity? (0.5 points)

5. what is microfinance? (0.5 points)

6. what is venture capital? (0.5 points)

lesson 4 (3.0 points)
1. what is a 401(k) account? (0.5 points)

2. what is a mutual fund? (0.5 points)

3. what is a broker? (0.5 points)

4. name a stock market indicator in the u. s. (0.5 points)

5. name at least two pieces of information that might be found in stock listings. (1.0 points)

Which of the following statements is correct? a) due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporationsb) most businesses (by number and total dollar sales) are organized as proprietorships or corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.c) due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatmentd) large corporations are taxed more favorably than proprietorshipse) corporate stockholders are exposed to unlimited liability

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?