Offsetting Assets and Liabilities is when a company pays for a set of assets that is worth more than their company’s worth if they liquidised all their assets and paid back all their liabilities(Book Value)
Explanation:
A firm who wants to restructure and to infuse further finance into the business they will go for the above said option stated in the question. The term offsetting of assets and liabilities is being used to refer for the above mentioned transaction in the question.
According to the accounting principle the company will sell of his assets which is more than the company’s worth will pay off their liability simultaneously and then they proceed for the restructuring of finance. This way it will help them to minimise their debt and the firm can declare it a debt free company.
Answer:
Productive Resources are the resources used to make goods and services
Explanation:
It's basically about the type of resource that makes capital goods and service.
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Usually, this is the case. However, just like when hoverboards first came out, there was a shortage of hoverboards and production activities had to ramp up production. However, after a few months, production activities were at a high level, but demand petered out.
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Production activities are processes a company uses to create goods or services, which are performed as needed to meet customer demand. For example, a rise in demand for eco-friendly products may lead a company to adjust its production accordingly.
The subject of your question relates to Business, specifically to the concept of production activities and demand. In the field of business, production activities refer to the processes a company undertakes to create goods or services. They are performed as needed to fulfill a specific demand, meaning they are driven by the needs and wants of customers. For instance, if there's a high demand for eco-friendly products, a company will adjust its production activities to manufacture such items.
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B. Rate of return
C. Risk premium.
D. Opportunity costs.
Answer:
Option C.
Explanation:
Risk premium is a term that is used to refer to the return in excess of the risk-free rate of return that an investment is expected to yield.
The risk premium of an asset refers to a kind of compensation that is given to the investors who tolerate the extra risk involved when investing in that particular asset, in comparison to the risk of a risk-free asset, in a given investment.
For instance, the high-quality corporate bonds which are issued by established corporations and earn large profits will typically have very little risk of default. Consequently, bonds of this nature will pay a lower interest rate, or yield, than bonds which are issued by companies that are less established and who have an uncertain profitability with a relatively higher default risk.
Answer:risk premium
Explanation: