Which of the following is not a characteristic of risk? a. The greater the uncertainty, the greater the risk. b. The greater the potential risk, the greater the potential return investors will expect. c. The later the cash flows are expected to be received, the greater the risk. d. The shorter the expected holding period, the greater the risk.

Answers

Answer 1

The answer is d. The shorter the anticipated holding period, the lesser the  threat.

The shorter holding period doesn't  inescapably increase  threat. threat is a measure of the  query associated with an investment. The  query of an investment is  generally determined by the volatility of the investment, the liquidity of the investment, and the anticipated or implicit return of the investment. The longer holding period doesn't  inescapably reduce the  threat associated with an investment as the anticipated return and volatility of the asset may still be high. The longer holding period may actually increase the  threat associated with an investment as the asset may be more  unpredictable or may not be liquid enough for investors to exit the investment  snappily.

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Related Questions

True or False: The Nash equilibrium outcome for trade policy is for both the United States and Mexico to have high tariffs.

Answers

The statement about the Nash equilibrium outcome for trade policy for both US and Mexico is a True statement.

Nash equilibrium method is the method that is used to predict the action for the entities involved in a certain game. The Nash equilibrium usually predicts the outcome of the game based on the decisions that is made by the players which are involved in the game. In this equilibrium no party can benefit by changing the parameters unilaterally instead the effect is seen on all the other parties involved. If we talk about the trade policy of United States and Mexico then both the countries deal in high trade tariffs and the decision made by one country effects the trade policy of other as seen from the method of Nash equilibrium.

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How to create a general ledger in Excel?

Answers

To create a general ledger in Excel, start by creating a new worksheet.

To create a general ledger in Excel follow the following steps.

In the new worksheet, click the Insert tab, and then click the General ledger button. In the General ledger dialog box, specify the name of the ledger you want to create, and then click OK. In the new ledger, you'll need to add a table to store your company's financial data. To do this, click the Table button, and then click the Add table button. In the Add table dialog box, specify the name of the table, and then click OK. In the new table, add the columns you need to store your data. To do this, click the Columns button, and then click the Add column button. In the Add column dialog box, specify the name of the column, and then click OK. In the new table, add the rows you need to store your data. To do this, click the Rows button, and then click the Add row button. In the Add row dialog box, specify the name of the row, and then click OK. Click the Print button to print the ledger.

Now that you've created your general ledger, you'll need to start recording your company's financial data. To do this, you'll need to use the various buttons in the ledger's toolbar.

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If a $10,000 investment earns a 3.7% annual return, what should its value be after one year?
A. $3,700
B. $3,800
C. $10,000
D. $10,370

Answers

If a $10,000 investment earns a 3.7% annual return, $ 10,370 will be its value after one year.

given data,

invested amount = $10,000

annual return = 3.7%

Number of years = 1

the formula for calculating total return will be:

Future Value = Present Value x ( 1 + Rate of interest ) ^ Number of years

by substituting the valued:

Future Value = $10,000 x (1.037 ^ 1)

                      = $10,000 x 1.037

                      = $ 10,370

A current asset's future value (FV), which is based on an estimated rate of growth, is its value at a later time. Investors and financial planners value the future value because it helps them determine how much an investment made now will be worth in the future.

Investors are better equipped to choose wise investments based on their anticipated demands when they are aware of the future worth. The asset's future worth, however, might be negatively impacted by external economic conditions by depreciating the asset. Comparison between present value and future value is possible (PV).

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What is the most important economic model?

Answers

A good illustration of a practical economic model is the classic supply and demand model covered in introductory economics. Its primary goal is to describe and examine the costs and volume of commerce in a market that is highly competitive.

What do economic models serve as?

Economic models are fundamentally used to understand and forecast economic phenomena. The premise that everything else is constant is known as ceteris paribus.

What economic model is most popular?

The supply and demand model is one of the best-known and most well-known examples of an economic model. According to the model, a product's price will rise as demand increases but fall when supply does.            

                                      Furthermore, it asserts that prices will rise and vice versa as consumer demand for a given good rises.

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The evidence-based management approach is based on:

1.effectively delivering goods and services.

2.rational decision making.

3.cost-cutting and planning.

4.goal setting.

Answers

The evidence-based management approach is based on rational decision making.

Whether it's a company, a nonprofit, or a government agency, management is the administration of the institution. It is both the science and the art of managing a company's resources. Setting an organization's strategy and directing employee efforts to achieve goals via the use of existing resources, such as financial, natural, technical, and human resources, are included in management.

The terms "run the business" and "change the business" are used in management to distinguish between continuing to supply goods or services and tailoring those same goods or services to satisfy consumers' shifting wants.

Hence the correct option is 2.

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to exchange his accounting services for her payment of a certain amount. To constitute consideration, there must be

Answers

To constitute consideration, there must be a bargained-for exchange

For a contract to be paid, the parties must mutually agree to exchange something of value. In this case, Braxton offers to provide accounting services in exchange for Tawny paying a certain amount. This fee-for-service exchange is a negotiated exchange and is therefore considered a consideration for the contract.

It is important to note that bargained-for exchange can take many forms and does not necessarily have to be payment of money or provision of services. It also includes promises, indulgences, or transfers of ownership. Harmful trust is not considered compensation. That's another legal opinion.

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Your question is incomplete, most probably the complete question was:

Braxton questions whether there is a consideration for his contract with Tawny to exchange his accounting services for her payment of a certain amount. To constitute consideration, there must be:

a payment of money

a performance of services

a bargained-for exchange

detrimental reliance

What are the factors that affect pricing strategies?

Answers

Pricing is an important part of a company's marketing strategy because it entails deciding how much to charge for goods or services. Some of the factors affecting pricing are:

What are the factors affecting pricing?Cost of production: The price that a business can charge typically depends heavily on the cost of producing a good or service.Competition: The pricing strategy of a corporation may also be impacted by the costs of similar goods or services. If a business's rivals are offering reduced prices, it might need to do the same in order to stay competitive.Market Demand: Demand for a good or service may also have an impact on pricing policy. A business can be able to charge a greater price if there is high demand.Pricing objectives: Pricing goals for a business, such maximizing profits or expanding market share, can also affect its pricing approach.

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Which types of banks are you most likely to find in local neighborhoods of a town?

Answers

Banks like Chase, PNC, and Bank of America are typical examples of retail banks; however, in some cases, these companies also provide commercial banking.

What is the various banking services are there?

Numerous services are offered by some banks. A bank might, for instance, provide personal accounts to customers, merchant accounts to businesses, and even assist big businesses in raising capital on the financial markets. The banks you probably know the best are retail banks.

State Bank of India, Corporation Bank, Bank of Baroda, Dena Bank, and other institutions are examples of public sector banks. In the case of private sector banks, private individuals hold the majority of the bank's share capital. These banks are listed as limited liability companies.

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an _____ shows the objects and how they interact to perform business functions and transactions.

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An object relationship diagram tends to show the objects and how they interact to perform business functions and transactions.

The object relationship diagram is said to be created based on the three principal components, which are, attributes, entities, and relationships. So, this is considered to be a type of structural diagram which is for use in the database design.

However, the business functions are considered to be the activities which are carried out by an enterprise. Thus, they can be divided into the core functions and the support functions. So, the 3 basic functions of business organizations are marketing, operations, and finance.

Hence, various tasks are carried out, for a business to operate effectively.

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You earn $50,000 per year. Your entire income is taxed at the 10 percent federal tax bracket. Which value reflects your net income?.

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In the 2022 and he 2023 tax years, he has seven federal tax brackets with tax rates ranging from 10% to 37%.

A tax category refers to the range of income subject to a particular income tax rate. Tax brackets are part of a progressive tax system in which tax rates increase in stages as an individual's income increases. Low-income earners are classified into tax brackets with relatively low income tax rates, and high-income earners are classified into income brackets with high tax rates.

There are currently seven federal tax divisions in the United States, with tax rates ranging from 10% to 37%. The U.S. tax system is progressive, with lower class taxpayers being taxed at lower rates and upper class taxpayers being taxed at higher rates.

Multiple tax rates apply, depending on which additional tax rate your income falls under, unless your gross income falls under the lowest tax rate.

It is not simply taxed at the tax rate that fits the total income. Therefore, you will effectively pay less than this rate.

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Your net income would be $45,000.

What is income?

Having a steady source of income is essential to ensure a comfortable life and to provide for the needs of oneself and one's family. Having a steady income also provides financial stability, as well as the ability to plan for the future. A steady income also allows for the accumulation of savings and investments, which can provide financial security in the future. Having a steady income can also help to reduce stress, as one has the assurance that bills will be paid and expenses can be covered. Ultimately, having a steady income can help to improve quality of life and give one a sense of financial freedom.

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Which scratch ticket wins the most in Florida?

Answers

On Monday, January 9, 2023, 500X THE CASH, which has a score of 82 and only 1 grand prize left, is the greatest Florida scratch-off. 500X THE CASH outperforms the typical Florida scratch-off by $0.16 on every dollar.

What is a scratch ticket?

A scratchcard, also known as a scratch ticket, scratcher, scratched, scratch-it, scratch game, scratch-and-win, instant game, instant lottery, scratchie, lot scrots, or scratches, is a card made specifically for competitions.

It is frequently made of thin cardstock or plastic to conceal PINs and has one or more areas with concealed information that can be revealed by removing an opaque covering on one or more of the areas.

The best Florida scratch-off for Monday, January 9, 2023, is 500X THE CASH, which has a score of 82 and only 1 grand prize remaining.

On average, Florida scratch-offs perform $0.16 worse than 500X THE CASH.

Therefore, on Monday, January 9, 2023, 500X THE CASH, which has a score of 82 and only 1 grand prize left, is the greatest Florida scratch-off. 500X THE CASH outperforms the typical Florida scratch-off by $0.16 on every dollar.

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What is the first activity in the planning phase? A)preparing and statement of objective SOO , SOW, and work breakdown structure (WBS) B)identifying and justifying a mission need that requires a material solution C)preparing a statement of work SOW D) selecting a contract type

Answers

The correct answer is B. The first activity in the planning phase identifying and justifying a mission need that requires a material solution.

A work breakdown shape (WBS) in task control and systems engineering is a deliverable-orientated breakdown of an assignment into smaller additives. a piece breakdown shape is a key challenge deliverable that organizes the group's paintings into doable sections. The undertaking control frame of expertise (PMBOK five) defines the work breakdown structure as a "hierarchical decomposition of the total scope of labor to be performed by using the project group to accomplish the task objectives and create the desired deliverables."

A work breakdown structure element may be a product, data, service, or any mixture of these. A WBS also presents the important framework for particular fee estimation and management even as supplying steerage for timetable improvement and control.

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Which of the following is an activity that is conducted during the human resources planning process?
A) Environmental scanning
B) Training and development
C) Demand forecast
D) Outplacement
E) Internal recruiting

Answers

Demand forecast is an activity that is conducted during the human resources planning process.

Human resource planning is a continuous, methodical planning process that aims to make the best possible use of an organization's most important resource: qualified personnel. Planning for human resources helps prevent shortages or surpluses of labour while ensuring the optimal match between workers and positions.

The organization must describe its workforce's forecast as part of the second phase of human resource planning. Here, the HR division can take into account specific concerns like promotion, retirement plans, cutbacks, and transfers—anything that affects the company's future demands. The HR division can also take a look at outside factors affecting labor demand, such new technologies that can make hiring more or less necessary.

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What is an example of a digital asset?
A. A famous painting
B. A laptop computer
C. Football game tickets
D. Video game virtual currency

Answers

An example of a digital asset is video game virtual currency. The correct option is d.

What is a digital asset?

A digital asset is any file that can be used and stored on a computer. Digital assets are often images, audio, and video files. It is always a file and it can always be stored on your computer or server. They can be accessed remotely by people who need them to complete their projects and then they're replaced with new versions when they're updated or changed by the creator.

A digital asset is anything that can be used for web, print, or other marketing projects.

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When should agile team make time for innovation?

Answers

All during the program increment, agile teams should allocate time for innovation.

How frequently are iterations for innovation and planning conducted?

The Innovation and Planning (IP) Iteration that comes before every Program Increment (PI) has a number of objectives. In addition to acting as an estimation buffer for accomplishing PI Objectives, it offers dedicated time for innovation, continuous education, PI Planning, and Inspect and Adapt (I&A) activities.

People are working diligently to complete the Features they agreed to during PI planning, and SAFe places a high priority on continuing to deliver customer value.

Each iteration is important, and the teams are mostly concerned with delivering immediate results. Each iteration moves the Solution closer to the market. There is a constant and focused focus on offering solutions.

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If a customer wants to buy shares of ABC on margin, while ABC is engaged in an initial public offering, how many days must the customer wait after the public offering date

Answers

30 For the first 30 calendar days after the public offering date, a new issue may not be bought on margin in accordance with Regulation T. If a client wishes to purchase shares of ABC on margin.

In the world of finance, the margin is the collateral that a trader or investor must put up with their broker or exchange to cover the credit risk the trader or investor poses for them. By taking out a loan from their broker to pay for securities, borrowing securities to sell them for a loss, or engaging in a derivative arrangement, an investor can expose themselves to credit risk.

When an investor purchases an asset using a broker's balance loan, this is known as buying on margin. The term "buying on margin" describes the initial payment made to the broker for the asset; the investor utilizes the securities that are eligible for leverage in their brokerage account as security.

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According to Regulation T, a new issue can also no longer be bought on margin for the first 30 calendar days following the public supplying date.

Why is preliminary margin required?

Initial margin is held to cowl the losses that could occur in the period between the defaulter's closing version margin fee and the point at which the surviving party is capable to hedge or replace the trade.

Which margin is the amount required at the time of purchasing a future asset?

Initial Margin

The initial futures margin is the quantity of cash that you want in order to open a buy or promote on position on a futures contract. 7 Initial margin is additionally called "original margin," or the same quantity posted when the alternate first takes place.

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with regard to accounts receivable, a separate account for each customer is kept in a(n):

Answers

The correct answer is B. A separate account for each customer is kept in a  subsidiary ledger.

A subsidiary ledger is a set of comparable debts whose mixed balances equal the stability in a particular widespread ledger account. the overall ledger account that summarizes a subsidiary ledger's account balances is referred to as a managed account or master account.

A subsidiary ledger is a listing of a man or woman's debts that document transactions with common traits linked to a controlling account. In other words, it’s a set of individual general ledger bills which have associated transactions.

A subsidiary ledger is beneficial to accountants and bookkeepers for a selection of reasons. First, it companies associated debts into one ledger that can be easily totaled and analyzed. it's miles an awful lot less difficult to study records while it's far prepared and grouped collectively.

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Complete Question:

with regard to accounts receivable, A separate account for each customer is kept in a:

A) control account.

B) subsidiary ledger.

C) general ledger.

D) control ledger.

_________ means selling goods and services to ultimate consumers over the Internet.
A) Electronic retailing
B) B2B distribution
C) O-selling
D) Intercommerce

Answers

Option A is correct answer. Electronic retailing  is means selling goods and services to ultimate consumers over the Internet.

The term "retail" refers to the selling of products and services via the internet. E-commerce can include both business-to-business (B2B) and business-to-consumer (B2C) product and service sales. E-commerce necessitates that businesses adapt their company models to capture online sales, which may include the establishment of sales channels such as storage facilities, internet internet sites, and delivery services centers. Particularly, powerful distribution channels are essential in electronic retailing because they transport the product to the client. E-tailing encompasses more than simply e-commerce businesses. Conventional brick-and-mortar stores are increasingly investing in e-commerce. Electronic retailing has lower infrastructure costs than traditional retailing.

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Which of these is used as a measure of the total amount of available cash flow from a project?
a. Operating cash flow.
b. Investment in operating capital.
c. Free cash flow.
d. Sunk cash flow.

Answers

Free cash flow is used as a measure of the total amount of available cash flow from a project.

Cash flow maintains your company healthy and robust, allowing it to weather lean months and accelerate during busy ones. Cash flow may be measured in a variety of ways. Depending on the type of your firm and your operating goals, each offers advantages and disadvantages. One of the most prevalent methods of assessing cash flow is free cash flow (FCF). This indicator measures the amount of money left over after capital expenditures such as equipment and mortgage payments. You must consider both company capital expenditures (CAPEX) and operational cash flow to obtain your free cash flow amount.

According to the US Small Business Administration, controlling cash flow is critical for good management of your finances and avoiding any future issues. Examine these six cash flow procedures with your internal team and outsourced controller services to see which one best suits your company's demands and operating style.

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Kevin is a real estate investor looking to buy a multi-family building. If other investors in the market are willing to accept a 7.5% return on their money, how much should Kevin pay for a property that yields an NOI of $220,000

Answers

Kevin is a property investor who wants to purchase an apartment complex. Kevin should spend $2,933,333 to buy a property with a NOI of $220,000 if other investors in the market are OK with a 7.5% return on their investment.

Which investment would be considered risk-free?

T-bills are viewed as the safest possible investment and offer what is known as a "risk-free rate of return" based on the credit worthiness of the United States of America. The interest rates on corporate bonds, muni bonds, and bank deposits are measured against this risk-free rate of return.

Why is the capitalization rate important for real estate appraisal? What does it mean?

A statistic used to assess real estate investments is the capitalization rate, also referred to as the cap rate. Net operating income is divided by the asset's current market value to determine the cap rate (selling price). A real estate investment's potential rate of return is indicated by the capitalization rate.

Net Operating Income (NOI): What Is It?

The metric known simply Net Operating Income, or NOI, is used by real estate experts to quickly assess the profitability of a particular project. NOI analyzes the revenue and profitability of investment real estate property after deducting necessary operational costs.

NOI= $220,000

Return= 7.5%= 0.075

pay for property= $220,000 / 0.075

                          = $2,933,333

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All businesses approach ethics the same way.True or False

Answers

Every company approaches ethics in the same way. The answer to the question's supplied statement is untrue.

How do business ethics work?In the end, being ethical requires making judgements about what is "good" and "wrong." Everywhere in the world, there are fundamental principles that define what is right and incorrect in terms of business operations.For instance, risky working conditions are often viewed as immoral since they put employees at risk. A good example of this is a crowded work floor with only one exit. In the event of an emergency, such as a fire, employees run the risk of becoming trapped or being crushed.Even if some unethical business practises are obvious or true for businesses everywhere, they still take place. Determining what actions are morally acceptable or not is the more difficult task.

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AMZ Corporation has declared a cash dividend of $1.10. On the ex-dividend date, an open order to buy AMZ at 52 stop would A) remain at 52 stop. B) be automatically adjusted to 53.10 stop. C) be automatically adjusted to 52.10 stop. D) be automatically adjusted to 51.90 stop.

Answers

Option (a). A $1.10 cash dividend has been issued by AMZ Corporation. An active order to purchase AMZ at 52 stop would remain at 52 stop on the ex-dividend date.

A Cash Dividend: What Is It?

A cash dividend is a payment made to all investors from the company's accumulated profits or proceeds from ongoing activities. Cash dividends are distributed in the form of cash, as opposed to dividends on stocks or other assets with value.

When the dividend is paid or when the stock goes ex-dividend, the stock's value decreases. As a result, it would be necessary to modify the payout amount for orders placed below the market. As a result of the purchase stop order's position above the market, the price will remain unchanged. Consider the SLoBS (Sell Limits and Buy Stops) and BLiSS (Buy Limits and Sell Stops) rules, in which the Sell Limits and Buy Stops are, respectively, above and below the market.

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Which of the following is not a stakeholder of a typical corporation?

Select one:

A. Customers

B. Governments

C. Employees

D. Stockholders

Answers

The correct answer is option A. The customers are not a stakeholder of a typical corporation.

The customers are usually not considered to be a stakeholder of an organization because they do not play any role in the organisation and neither they support the organisation. But they are there only to avail the products and services which the corporation gives.  While a stakeholder is someone who supports the organization that cease to exist.

A corporation is a legal entity which is created by individuals, stockholders, or shareholders. It is created with the purpose of operating for profit or in other words for making profits

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What is the importance of interest?

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In a market economy, interest fulfils a number of important roles. The coordination between borrowers and savers is the most obvious example; borrowers are required to pay interest in order to borrow more money.

What does the term interest mean?

The fee you pays to borrow the money or the fee you demand to lend the money is called interest. The most common way to represent interest is as a yearly percentage of the loan amount. The rate of interest on the loan is known as this percentage.

What is the short answer to interest?

In the simplest terms possible, interest is indeed the cost of borrowing money. It's the portion of a credit card or loan balance you have to pay back to your lender. Nevertheless, interest may also be paid to you; prominent ways to do so include certificates of deposit and savings accounts.

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11. Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts a. in proportion to the total number of members. b. to the extent of her investment in the company. c. in proportion to her profit derived from the company. d. to the full extent.

Answers

b. Dana is a limited liability company member of Earthground Coffee, LLC. Dana is personally liable for Earthground's debts up to the amount of her investment in the company.

What exactly is liability?

Liability typically indicates that you are accountable for something, but it can also indicate that you owe someone money or services. A homeowner's tax burden, for example, can be the amount he pays the city in property taxes or the amount he owes the federal government in income tax.

When a retailer charges a consumer sales tax, the retailer is required to pay sales tax until the money is transferred to the county, city, or state. Liabilities can assist a company in establishing successful operations and accelerating value growth.

However, if liabilities are not properly handled, they can cause major issues such as a reduction in financial performance or even bankruptcy. Liabilities also influence how liquid a firm is and how its capital is structured.

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what type of stakeholders include community, government, nongovernmental organizations, and business support groups?

Answers

Secondary stakeholders, on the other hand, are not secondary. This diverse stakeholder group includes customers, government agencies, regulators, trade unions, local communities, the wider world, NGOs and the media.

Simply put, a corporate stakeholder is an individual, corporation, or organization that has a vested interest in its performance. Identifying and prioritizing stakeholders that are important to your organization is not a simple task.

Part of the complexity lies in the breadth and diversity of potential stakeholders. Every organization has internal and external stakeholders, also called primary and secondary. Internal stakeholders include employees, project teams, managers, boards and shareholders. A key stakeholder is an individual who directly impacts and is directly affected by an organization's performance.

Secondary stakeholders, on the other hand, are not secondary. This diverse stakeholder group includes customers, government agencies, regulators, trade unions, local communities, the wider world, NGOs and the media.

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Community: Local residents, community groups, faith-based organizations

Government: Elected officials, government agencies, public sector unions

What is public sector?

The public sector consists of businesses owned and run by the government that offer services to the general populace, including infrastructure, public transportation, public health care, and law enforcement. It is responsible for creating and maintaining the environment in which citizens are able to live and work and is funded by taxes. It is responsible for delivering services that are essential to the well-being of citizens such as national defence, public safety, and economic prosperity. It also provides social welfare and public services, such as education, health, housing and employment.

Nongovernmental Organizations: Charities, advocacy groups, think tanks

Business Support Groups: Trade associations, chambers of commerce, professional networks

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What is the ultimate goal of data analytics?

Answers

The primary goal of a data analyst is to increase efficiency and improve performance by discovering patterns in data.

The graphical depiction of data and information is the focus of the interdisciplinary topic of data and information visualization. When the data or information is plentiful, such as a time series, it is an especially effective technique for conveying.Data visualization is the graphical display of various kinds of information or data using visual components like charts, graphs, or maps. Data trends, anomalies, and patterns can be easily and intuitively seen and understood with the aid of data visualization tools.

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if an owner has enough cash to fund the operations of a commercial investment property while the cash flow becomes stabilized, he is considered this...?

Answers

if an owner has enough cash to fund the operations of a commercial investment property while the cash flow becomes stabilized, he is considered this liquid?

An actual investment is an investment that a firm actually does during a certain or specific period of time.A planned investment is an investment that a firm plans to do at a future time.An actual investment then, is the sum of planned investment and unplanned investment. We can also say that, actual investment is the sum of planned investment and unplanned changes in the inventory.

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What are the 5 types of general ledger accounts?

Answers

The 5 types of general ledger accounts are Income/Expense, Bank Account, Loan Account, Purchase Order and Sales Order

1. Income/Expense: This is an account where you track your income and expenses. This is an important account to keep track of because it will help you to manage your finances.

2. Bank Account: This is an account where you track your bank balance and transactions. This is an important account to keep track of because it will help you to manage your finances.

3. Loan Account: This is an account where you track your loans and other liabilities. This is an important account to keep track of because it will help you to manage your finances.

4. Purchase Order: This is an account where you track your purchase orders. This is an important account to keep track of because it will help you to manage your inventory.

5. Sales Order: This is an account where you track your sales orders. This is an important account to keep track of because it will help you to manage your sales.

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Which of the following is most likely to occur if a firm over-invests in net working capital?
A) The current ratio will be lower than it should be.
B) The quick ratio will be lower than it should be.
C) The return on investment will be lower than it should be.
D) The times interest earned ratio will be lower than it should be.

Answers

Return on investment will be lower than it should be most likely to occur if a firm over-invests in net working capital. If return is staying same but you increase investment ROI is decreasing. The correct option is (c).

What Is an Investment?

An investment is a purchase undertaken with the hope of earning money or increasing capital. Appreciating is the term for an asset's value rising over time. When someone invests in something, they do not do so with the intention of using it as a source of current consumption, instead they use it as means of generating income in the future.. An engagement is putting capital to use, such as time, energy, effort, etc., with the expectation of receiving a larger return than what was first invested. Trades often don't guarantee an increase in value.

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