CA 2023
3.4
(60 minutes)
This question tests the definition of a 'resident'. It also tests the concept of 'carrying on business'.
It tests sections 10(1)(A), 10(1)(), 10(1)(A) and the judgments from Cohen v CIR (1946 AD 173, 13
SATC 362), CIR v Kuttel (1992 (3) SA 242 (A), 54 SATC 298) and ITC 1501 ((1989) 53 SATC
314).
Hunter Jackal sold his coal-mining business 23 years ago. The enormous capital profit he made
provided him with a life-long wealth. Despite never needing to work again he became a farmer - he
breeds racehorses. He loves horse-racing. And as a 'hobby, or a sport, he has raced horses for the
past 23 years. He has never raced horses as a business.
Three years ago Hunter Jackal emigrated from South Africa. Prior to emigrating he sold his stud
farm (the farm on which he bred racehorses) and ceased farming operations. He now breeds
racehorses in the country in which he resides. He lives in a homestead on this stud farm. He has
not, however, ceased racing horses in South Africa and is still one of South Africa's leading
racehorse owners. Horses owned by him often compete in South Africa's feature horse races. These
are always the 'richest horse races in South Africa. He often visits South Africa to watch his
horses run in these horse races
When Hunter Jackal emigrated he invested his blocked funds in local dividend-yielding shares,
local interest-bearing securities and local rent-producing properties
Since Hunter Jackal's emigration his horses have not performed as well in horse races as was the
situation prior to his emigration. Over the past two years this horse-racing 'hobby" or "sport" has
cost him a lot of money in that the expenses of his horse-racing sport have way exceeded the stake
money won by his racehorses. A friend has suggested to him that he should 'convert' this "hobby'
or 'sport' into a business. The friend claims that the loss from this business will be deductible in the
determination of his South African taxable income thereby reducing his South African normal tax
hability.
Due to Hunter Jackal's numerous visits to South Africa he spends almost half the year in South
Africa Another friend has warned him that should he end up spending more than half a year of
assessment in South Africa this could have adverse tax consequences in South Africa.
Hunter Jackal owns luxury town houses in Cape Town, Durban and Johannesburg. He does not let
these town houses. He occupies them himself when he visits Cape Town, Durban and
Johannesburg to watch his racehorses run at the race courses situated in, or near, these towns
A third friend of Hunter Jackal is of the view that due to the ownership of these three 'homes' in
South Africa, and because of his regular visits to South Africa, that he could be regarded as being
ordinanly resident in South Africa
Yet another friend of Hunter Jackal, a fourth friend, has informed him that even if the third friend's
view is Incorrect that he may be a resident of the Republic resulting from the time he spends in
South Africa
Hunter Jackal, who is at present 63 years old, would like to know if the view or concerns of any of
his four friends as detailed above are valid
You are required to state whether the opinions of Hunter Jackal's friends are correct.

Answers

Answer 1

The οpiniοn οf Hunter Jackal's first friend, that he shοuld cοnvert his hοrse-racing hοbby οr spοrt intο a business in οrder tο reduce his Sοuth African nοrmal tax liability, is incοrrect.

What is hοbby?  

A hοbby is an activity οr interest that is undertaken fοr pleasure οr relaxatiοn, usually dοne during οne's leisure time.

The Sοuth African Incοme Tax Act dοes nοt allοw a deductiοn fοr lοsses incurred in a hοbby οr spοrt.

The οpiniοn οf Hunter Jackal's secοnd friend, that he cοuld be regarded as οrdinarily resident in Sοuth Africa if he spends mοre than half a year οf assessment in the cοuntry, is cοrrect. In terms οf sectiοn 10(1)(a) οf the Sοuth African Incοme Tax Act, a persοn is οrdinarily resident in Sοuth Africa if they are physically present in Sοuth Africa fοr mοre than 183 days in a 12-mοnth periοd.

The οpiniοn οf Hunter Jackal's third friend, that he cοuld be regarded as οrdinarily resident in Sοuth Africa due tο the οwnership οf the three hοmes and his regular visits tο the cοuntry, is incοrrect. The judgments οf Cοhen v CIR (1946 AD 173, 13 SATC 362) and CIR v Kuttel (1992 (3) SA 242 (A), 54 SATC 298) have established that mere οwnership οf prοperty in Sοuth Africa dοes nοt, in and οf itself, cοnstitute residence in Sοuth Africa.

The οpiniοn οf Hunter Jackal's fοurth friend, that he may be a resident οf the Republic resulting frοm the time he spends in Sοuth Africa, is cοrrect. In terms οf sectiοn 10(1)(b) οf the Sοuth African Incοme Tax Act, a persοn is a resident οf the Republic if they are physically present in Sοuth Africa fοr mοre than 91 days in aggregate during a 12-mοnth periοd and fοr mοre days than in any οther cοuntry in that periοd.

The judgment οf ITC 1501 ((1989) 53 SATC 314) has established that a persοn is a resident οf the Republic if they are physically present in Sοuth Africa fοr mοre than 91 days in aggregate during a 12-mοnth periοd, regardless οf the amοunt οf time they have spent in any οther cοuntry.

To learn more about hobby

brainly.com/question/29107841

#SPJ1


Related Questions

FILL IN THE BLANK firms selling to organizational buyers have______ potential customers compared to firms selling to consumers.

Answers

Answer:

far fewer

Explanation:

Firms selling to organizational buyers have far fewer potential customerscompared to firms selling to consumers. 10. Industrial, reseller, and government markets are the three categories oforganizational buyers.

When ice melts at its normal melting point; 273.16 K and 1 atmosphere; which of the following is true for the process shown? A) AH < 0, AS > 0, AV >0 8) AH < 0, 4s 0,Av > 0 C) AH > 0, As < 0, AV < 0 D) AH > 0, 4S > 0,Av > 0 E) AH > 0, 4s > 0, AV < 0

Answers

The process is endothermic, meaning that heat is absorbed, and the temperature remains constant during the melting process. The correct answer is (D) AH > 0, AS > 0, AV > 0.

The process described is the melting of ice at its normal melting point of 273.16 K and 1 atmosphere. The enthalpy of fusion (AH) is the energy required to convert one mole of a substance from the solid state to the liquid state at a constant temperature and pressure.

The entropy of fusion (AS) is the change in entropy that occurs during this process, and the change in volume (AV) is the difference between the molar volumes of the solid and liquid phases. The positive value of AH indicates that energy is absorbed during the melting process, while the positive values of AS and AV indicate an increase in entropy and volume, respectively, which are expected during a phase change from solid to liquid.

Therefore, during the melting of ice at its normal melting point, the energy is absorbed, and the entropy and volume of the substance increase.

To learn more about endothermic

https://brainly.com/question/23184814

#SPJ4

true/false. the value of a share of stock should be the present value of all future cash flows payable to shareholders, discounted at a rate that accounts for risk.

Answers

It is True that the value of a share of stock should be the present value of all future cash flows payable to shareholders, discounted at a rate that accounts for risk.

The value of a share of stock should be the present value of all future cash flows payable to shareholders, discounted at a rate that accounts for risk. This is because future cash flows will be worth less in the present due to the time value of money. Discounting future cash flows takes into account the amount of time until those cash flows will be received.

In order to calculate the present value of a share of stock, investors must first calculate the expected future cash flows for the stock. These cash flows include dividends, earnings, and capital gains. These cash flows must then be discounted using an appropriate risk-adjusted discount rate. This rate should take into account the potential risk of holding the stock, including the volatility of the stock price and any other risk factors that may affect the stock.

Once these two elements are calculated, the present value of the stock can be calculated. This is done by dividing the sum of the discounted future cash flows by the number of shares outstanding. This figure can then be compared to the current price of the stock to determine whether the stock is currently undervalued or overvalued.

Investors should be aware that the calculation of the present value of a share of stock is a complex process and requires a deep understanding of the risks and rewards associated with the stock in order to accurately calculate the present value.

For more questions on "Stock" :

https://brainly.com/question/13454463

#SPJ11

The following information is available for completed Job No. 402: Direct materials, $25,000 direct labor, $35,000 manufacturing overhead applied, $20,000 units produced, 8,000 units units sold, 6,000 units. The cost of the finished goods on hand from this job is

Answers

Work No. 402's final goods cost $24,000 in total.

What is the price of the finished product?

Direct labor, direct materials, and overhead are the three main expenses involved in producing items, and they are all included in the cost of finished goods. In addition, a company will pay carrying costs when finished goods are kept in stock.

We must apply the following calculation to determine the cost of the finished goods we currently have from Work No. 402:

Direct materials, direct labour, and manufacturing overhead are all included in the cost of goods manufactured.

Cost per Unit = Manufacturing Cost / Units Produced

Cost of Completed Items = Cost Per Unit x Ending Inventory Units

Given:

Direct materials = $25,000

Direct labor = $35,000

Manufacturing overhead applied = $20,000

Units produced = 20,000 units

Units sold = 8,000 units

Units in ending inventory = 6,000 units

Using the formula, we can calculate:

Cost of Goods Manufactured = $25,000 + $35,000 + $20,000 = $80,000

Cost per Unit = $80,000 / 20,000 units = $4 per unit

Cost of Finished Goods on Hand = $4 per unit x 6,000 units =$24,000

To know more about goods cost visit:-

https://brainly.com/question/14866200

#SPJ1

Match each CRM technique with its description
-RFM
-loyalty programs
-clickstream analysis

offers discounts or free items to customers
who keep coming back
calculates a customer's most recent visit,
the frequency of visits, and annual spending
discovers through data mining what customers
have in common to predict behavior
tracks every image, link, or object that
a customer clicks
clustering

Answers

RFM calculates customer's most recent visit, frequency of visits, and the annual spending.

What is annual spending?

Annual spending refers to the total amount of money that an individual, household, or organization spends over the course of a year. This includes all types of expenses, such as rent or mortgage payments, utilities, food, transportation, clothing, entertainment, and more. Annual spending is an important indicator of an individual or organization's financial health, as it can provide insight into their income, expenses, and overall financial habits. Tracking annual spending can also be useful in creating a budget or financial plan, as it allows individuals and organizations to identify areas where they may be overspending and make adjustments as necessary. Additionally, analyzing annual spending trends over time can help individuals and organizations make informed decisions about their financial priorities and goals.

To learn more about annual spending, visit:

https://brainly.com/question/29454550

#SPJ1

Which of the following is an example of licensing?
Select one:
A. ZetaBike, a bicycle manufacturer, teams up with VitaWater, a sports drink producer, to introduce ZetaVita, an energy drink.
B.Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee.
C.Mason's, a retail chain, sells a number of different products from different manufacturers under the brand name Mason's.
D.XLC, a sporting goods firm, sponsors a number of top athletes in various sports and also hosts the XLC Sporting Achievement Awards.
E.DMX, an electronics manufacturer, acquires Z-Elex, a start-up firm, and sells all Z-Elex's products under the DMX brand name.

Answers

This is an illustration of licencing; for a fee or royalty, a business buys the right to utilise another company's intellectual property and then sells the products under its own brand name.

What benefit does having a licence provide?

The likelihood of foreign governments seizing control or interfering is reduced. Without spending money to set up production facilities, it enables multinational corporations to make things on a huge scale.

What precisely is licencing?

In general, licencing is granting permission for one firm to use another company's patents, trademarks, copyrights, designs, and other intellectual property in exchange for a cut of sales or a fee. Given that there is no production or sales required, it is a quick way to make money and expand a firm.

To know more about intellectual property visit:-

https://brainly.com/question/18650136

#SPJ1

Which of the following activities is management performing if they are at step two of the control process?
Multiple Choice
a)measuring actual outputs resulting from the behavior of employees
b)determining whether standards are being met and deciding what to do
c)initiating corrective actions if standards are not being achieved
d)determining which standards of performance will be measured

Answers

The next phase (step two) in the control process is to measure actual performance once management have chosen the criteria or objectives they will use to evaluate performance.

What is control process?

Measuring actual performance using the same criteria used to define standards is the second phase in the control process. Effective reporting systems are necessary for accurate and timely measurement of results. In situations when standards have been established using numbers, the quantitative measurement should be performed.

Establishing criteria and techniques for performance evaluation. performance assessment. figuring out whether or not performance is up to par. putting a stop to it. Controlling recognizes any form of irregularity and takes appropriate remedial action. This aids in closing the gap between expected and actual results, hence assisting in the accomplishment of organizational goals.

Learn more about control process:

https://brainly.com/question/14326918

#SPJ1

A stock is priced at $50 with a volatility of 35 percent. A call option with an exercise price of $50 has an expiration in one year. The risk-free rate is 5 percent. Construct a table for stock prices of $5, 10, 15, ..., 100. Compute the Black–Scholes–Merton price of the call and the European lower bound and verify that the former is at least as large as the latter.

Answers

For a call option with a $50 exercise price and a one-year expiration date, we determine the Black-Scholes-Merton price and European lower bound. We then confirm that the former is always greater than or equal to the latter.

What is a European call option's lower bound?

We are aware that an option's value is determined by adding its intrinsic value to its time value. An option's value cannot be negative since it cannot trade for less than its intrinsic worth.

What is the European Black-Scholes Option Pricing Model?

Black-Scholes is a pricing model that uses six variables, including volatility, to calculate the theoretical value or fair price for a call or put option.

To know more about price visit:-

https://brainly.com/question/20703640

#SPJ1

which of the following accurately describes a difference between an individual bond compared to a bond fund?

Answers

The term that  accurately describes a difference between an individual bond compared to a bond fund is A bond is considered to be a less diversified investment than a bond fund.

What is individual bond compared to a bond fund?

An individual bond is a debt security issued by a single issuer, typically a company or a government, with a specified interest rate and maturity date. When an investor buys an individual bond, they are essentially lending money to the issuer for a set period of time, in exchange for interest payments and the return of their principal investment when the bond matures.

On the other hand, a bond fund is a collection of individual bonds held by an investment company or fund manager. Investors can buy shares in the fund, which gives them exposure to a diversified portfolio of bonds. The fund manager selects and manages the individual bonds within the portfolio, and investors receive income from the interest payments made by the bonds held in the fund.

Learn more about bond at:

https://brainly.com/question/25965295

#SPJ1

by ensuring that nominal payments keep pace with rising prices, market participants can protect themselves from

Answers

By ensuring that nominal payments keep pace with rising prices, market participants can protect themselves from C. Inflation.

What is inflation ?

Inflation is the rate at which the general level of prices for goods and services is rising, and as prices rise, the purchasing power of money declines.

When nominal payments, such as wages, salaries, interest rates, and rental payments, do not keep pace with inflation, the real value of those payments declines, and individuals and businesses are not able to purchase as much with their money as they could before. This can lead to a decrease in standard of living and a reduction in economic growth.

Find out more on inflation at https://brainly.com/question/22509045

#SPJ1

Options for this question include:

A. Interest B. Unemployment C. Inflation D. Losses

Communists are covered under the Civil Rights Act. true or false
and
The first law regarding civil rights was the Civil Rights Act. true or false

Answers

It is true that the Civil Rights Act protects communists.

The Civil Rights Act was not the first civil rights law, which is untrue.

What is safeguarded by the Civil Rights Act?

According to the Civil Rights Act of 1964, discrimination against a person on the basis of their race, color, religion, sex, or country of origin is forbidden. The civil rights act's provisions forbade discrimination against people in hiring, promoting, and terminating decisions based on their race or gender.

Which civil rights movement was the first?

The nation's desegregated schools were undone by the 1954 Supreme Court decision in Brown v. Board of Education, the movement's first big victory in the modern era. Schools were slow to follow through, particularly in the South, and attempts to register black pupils occasionally resulted in violent outbursts.

Learn more about Brown v. Board of Education: https://brainly.com/question/14637388

#SPJ1

Select all that apply Which of the following items are found above the contribution margin on a contribution margin format income statement? Fixed expenses Variable expenses O Sales Net operating income

Answers

The following items are found above the contribution margin on a contribution margin format income statement: Fixed expenses Variable expenses Sales

An income statement is a financial statement that depicts an organization's revenues and expenditures over a certain period of time.

A contribution margin income statement is one in which fixed and variable costs are deducted from sales to determine the contribution margin. The contribution margin is then used to pay for fixed expenses and net operating income. To make an income statement, follow these steps:

Start with sales: To begin your revenue section of your statement, begin with sales. The sales portion of the revenue section should list the total value of goods or services sold for the period being reported.

Deduct the cost of goods sold:

Next, deduct the cost of goods sold. This covers the cost of goods or services sold during the accounting period being reported. The gross margin is the difference between sales and the cost of goods sold. Deduct variable expenses:

After calculating gross margin, subtract variable expenses. These are costs that change with sales volume. Deduct fixed expenses:

Subtract the fixed costs from the total. These are expenses that do not change with sales volume. Calculate net operating income:

After deducting fixed expenses, calculate the net operating income.

This is the money you have left over after paying all of your costs.

for more such question on contribution margin

https://brainly.com/question/27773337

#SPJ11

which of the following etfs (exchange traded funds) provides exposure to 500 u.s. large-capitalization companies?

Answers

The ETF that provides exposure to 500 U.S. large-capitalization companies is d. Diamonds, also known as the SPDR Dow Jones Industrial Average ETF. (Option A)

What is the explanation for the above response?

The ETF that provides exposure to 500 U.S. large-capitalization companies is d. Diamonds, also known as the SPDR Dow Jones Industrial Average ETF. The other ETFs mentioned are as follows:

a. Spider - SPDR S&P 500 ETF Trust: provides exposure to the S&P 500 Index, which includes 500 large-cap US stocks.

b. Clubs - iShares Russell 2000 ETF: provides exposure to small-cap US stocks.

c. Cubes - Invesco QQQ Trust: provides exposure to the NASDAQ-100 Index, which includes 100 large-cap technology and growth-oriented US stocks.

Learn more about SPDR at:

https://brainly.com/question/30023747

#SPJ1

Full Question:

Although part of your question is missing, you might be referring to this full question:

Which of the following ETF' s (exchange trtxied fund) provides exposure to 500 U.S. Iarge-capitalization companies?

a. Spider b. Clubs c. Cubes d. Diamonds

Which of the following is not a reason why a business firm would want to employ the services of an intrepreneur?
a) To maintain existing levels of operational efficiency.
b) To keep ahead of rival, competitive firms in product development.
c) To discover more profitable projects for the firm to undertake.
d) To keep the brightest minds within the corporation.

Answers

The correct answer is A) To maintain existing levels of operational efficiency. An intrepreneur is an individual within a business firm who works to develop new products and processes, to identify and evaluate new opportunities for the firm, and to create innovative solutions for the firm’s customers.

Intrepreneurs do not typically maintain existing levels of operational efficiency; rather, they focus on developing new ways to achieve higher levels of efficiency. Option A: To maintain existing levels of operational efficiency This is the correct option. To maintain existing levels of operational efficiency is not a reason why a business firm would want to employ the services of an intrepreneur.

This is because the purpose of an intrapreneur is to help the business grow and introduce new and innovative ideas to the business.A firm is a commercial organization that purchases goods and services for the purpose of selling them for a profit. A firm is a company that provides products or services to consumers, corporations, or other organizations.

A firm is a corporation, a partnership, or an individual proprietorship that generates revenue from its activities. Firms are the backbone of any economy, creating goods and services, providing employment, and promoting innovation. The correct answer is A.

For more such questions on intrepreneur

https://brainly.com/question/26700129

#SPJ11

The Standard Form to Confirm Account Balances with Financial Institutions includes information on all of the following except:

Answers

the standard form to confirm Account Balances with financial institutions includes information on all of the following except The principal amount paid on a direct liability.


the standard form is used to confirm deposit account balances and loan account balances with financial institutions. The form isn't always designed to find out records that doesn't seem at the confirmation request; therefore, financial institutions should not be expected to disclose statistics approximately different transactions or preparations on this general form. fabric accounts, agreements, or transactions which can be believed to exist, but have no longer been disclosed by means of management, need to be explicitly asked from the economic group cut loose this shape.


To recognise extra about financial institutions click on here
brainly.com/question/19643821
#SPJ4

Explain the history of SpaceX and its space shuttle.​

Answers

Answer:

SpaceX was founded in 2002 by entrepreneur and engineer Elon Musk to revolutionize space technology, with the ultimate goal of enabling people to live on other planets. The aim of SpaceX is to make space travel more accessible and affordable, while also advancing rocket technology. In 2012, they became the first private company to send a spacecraft to visit the International Space Station (ISS). In 2015, they launched their first unmanned flight of the Falcon 9 rocket, which was an immense success. This was the first time a private company had achieved such a feat of launching its own rocket into Earth's orbit. Since then, SpaceX has continued to make enormous strides in the space industry. In 2017, they became the first company to reuse a rocket for a second launch. This marked a significant milestone as it meant that SpaceX could reduce costs and benefit from increased efficiency.In 2020, SpaceX launched a Crew Dragon capsule carrying NASA astronauts to the ISS, making them the first private company to achieve human spaceflight.SpaceX is currently developing a new type of space shuttle called Starship, which is set to launch on its first mission later this year. The Starship is designed to be fully reusable and will be able to transport up to 100 passengers and payloads to deep space destinations.

Answer:

SpaceX, in full Space Exploration Technologies Corporation, American aerospace company founded in 2002 that helped usher in the era of commercial spaceflight. It was the first private company to successfully launch and return a spacecraft from Earth orbit and the first to launch a crewed spacecraft and dock it with the International Space Station (ISS). Headquarters are in Hawthorne, California.

SpaceX was formed by entrepreneur Elon Musk in the hopes of revolutionizing the aerospace industry and making affordable spaceflight a reality. The company entered the arena with the Falcon 1 rocket, a two-stage liquid-fueled craft designed to send small satellites into orbit. The Falcon 1 was vastly cheaper to build and operate than its competitors, a field largely populated by spacecraft built by publicly owned and government-funded companies such as Lockheed Martin and Boeing. Part of the rocket’s cost-effectiveness was made possible by the SpaceX-developed Merlin engine, a cheaper alternative to those used by other companies. SpaceX also focused on making reusable rockets (other launch vehicles are generally made for one-time use).

Explanation:

Suppose your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year.
a. By what percentage would your real income (approximately) increase?
b. If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent in some year, what must have been the (approximate) rate of inflation?

Answers

a. To calculate the approximate increase in real income, we can use the formula:  Real income = Nominal income / Price level

Given that nominal income rose by 5.3 percent and the price level rose by 3.8 percent, we can calculate the increase in real income as:

Real income = 5.3 / (1 + 0.038) = 1.023 or approximately 2.3 percent

Therefore, your real income would have increased by approximately 2.3 percent in this year.

b. To calculate the approximate rate of inflation, we can use the formula:

Inflation rate = (Nominal income growth - Real income growth) / Real income growth

Given that the nominal income rose by 2.8 percent and the real income rose by 1.1 percent, we can calculate the approximate rate of inflation as:

Inflation rate = (2.8 - 1.1) / 1.1 = 1.54 or approximately 1.5 percent

Therefore, the approximate rate of inflation in this year would have been approximately 1.5 percent.

To know more about nominal income ,visit :

https://brainly.com/question/17094716

#SPJ1

The third closing journal entry, after closing revenues and expenses, would include which of the following?
a) Debit Income Summary $9,400; and credit Retained Earnings $9,400
b) Debit Income Summary $10,000; and credit Retained Earnings $10,000.
c) Credit Income Summary $9,400; and debit Retained Earnings $9,400
d) Debit Income Summary $600; and credit Expenses $600.

Answers

The third closing journal entry, after closing revenues and expenses, would include  Credit Income Summary $9,400; and debit Retained Earnings $9,400 Thus Correct option (c).

This journal entry reflects the closing of the Income Summary account, which was used to summarize the revenue and expense accounts for the period. The credit to Income Summary represents the total revenue for the period, while the debit to Retained Earnings represents the net income for the period that is being retained by the company.

This entry transfers the net income from the Income Summary account to the Retained Earnings account, which is a permanent account on the balance sheet. Option (a) and (b) both debit Income Summary account, which is incorrect as the Income Summary account is credited during the closing process. Option (d) is also incorrect as it represents the closing entry for only a single expense account, not the entire period's expenses.

Learn more about journal entry

https://brainly.com/question/20421012

#SPJ4

Political risk insurance and local debt financing are both forms of __________.
a. Input Control
b. Hedging
c. Equity Sharing
d. Adaption

Answers

Political risk insurance and local debt financing are both forms of Hedging Investment. option b is correct.

The two significant risks in international trade that political risk insurance covers are political risks and commercial risks. Political risk refers to the risks that may arise due to the actions of governments or any government policies.

Commercial risk refers to the non-payment risks of debts from the debtor's financial, business, or economic condition. In the event of a loss, political risk insurance policyholders receive indemnification up to the sum insured. Insurers providing this type of coverage are known as political risk insurers.

debt financing is a form of financing in which the borrower raises capital in the country where they operate. The borrowing cost of local debt financing is often lower than that of foreign debt financing. A foreign company may use local debt financing as a method of financing to reduce the risk of currency fluctuations.

Borrowers who choose local debt financing may obtain loans that are denominated in local currencies or that are indexed to local currencies. This type of financing is provided by local banks, financial institutions, and other lenders.

Risk management is a critical component of international trade. In the event of any unforeseen events or difficulties, risk management measures such as political risk insurance and local debt financing may assist companies in protecting themselves from any potential losses.

for more such question on  commercial

https://brainly.com/question/1432446

#SPJ11

Which of the following statements should the salesperson use to acknowledge and convert the prospect's objection into a reason for buying?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "Yes, you're right, it is lighter, but that is done intentionally to make your work easier."
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so popular it never gets to stay on the shelf that long anyway."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "

Answers

The statement that a salesperson should use to acknowledge and convert the prospect's objection into a reason for buying is "b. Yes, you're right, it is lighter, but that is done intentionally to make your work easier.

A salesperson is someone who sells products, goods, and services to customers. A good salesperson understands the customer's needs and finds ways to make them want what they're selling. They should be able to persuade the customer that their product is the right fit for them. To do this, a salesperson must be knowledgeable about the product they are selling and be familiar with the market they are serving.

When a customer doesn't agree with something a salesperson has said, it is called an objection. A sales objection can occur at any stage of the selling process. Some common examples of objections include price, quality, competition, and timing. Acknowledge and Convert the Prospect's Objection. To handle customer objections, salespeople should acknowledge and then convert the objection into a reason for buying the product.

In the given options, statement b. "Yes, you're right, it is lighter, but that is done intentionally to make your work easier." is the best answer. It acknowledges the objection, agrees that the objection is valid, and converts the objection into a reason to buy the product.

For more such questions on salesperson

https://brainly.com/question/29558745

#SPJ11

Miller Company’s contribution format income statement for the most recent month is shown below:

Total Per Unit
Sales (41,000 units) $ 246,000 $ 6.00
Variable expenses 123,000 3.00
Contribution margin 123,000 $ 3.00
Fixed expenses 47,000
Net operating income $ 76,000

1. What is the revised net operating income if unit sales increase by 19%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 15%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 4%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 15%?

Answers

An incοme statement is a financial statement that details the incοme and expenses οf a firm.  It alsο shοws whether a cοmpany is making prοfit οr lοss fοr a given periοd , Sο the Net Operating Incοme = $88,546

What is the incοme statement fοrmula?

An incοme statement's fundamental fοrmula is Revenues - Cοsts = Net Incοme. This simple calculatiοn determines whether οr nοt the firm is prοfitable. A firm is prοfitable if its sales exceed its cοsts.

Units Sοld = 41,000 + 16% * 41,000

Units Sοld = 47,560

Selling Price per unit = $6.00

Variable Cοst per unit = $3.00

Fixed Expenses = $47,000

Cοntributiοn Margin per unit = Selling Price per unit - Variable Cοst per unit

Cοntributiοn Margin per unit = $6.00 - $3.00

Cοntributiοn Margin per unit = $3.00

Net Operating Incοme = Cοntributiοn Margin per unit * Units Sοld - Fixed

Expenses

Net Operating Incοme = $3.00 * 47,560 - $47,000

Net Operating Incοme = $95,680

Requirement 2:

Units Sοld = 41,000 + 15% * 41,000

Units Sοld = 47,150

Selling Price per unit = $6.00 - $1.10

Selling Price per unit = $4.90

Variable Cοst per unit = $3.00

Fixed Expenses = $47,000

Cοntributiοn Margin per unit = Selling Price per unit - Variable Cοst per

unit

Cοntributiοn Margin per unit = $4.90 - $3.00

Cοntributiοn Margin per unit = $1.90

Net Operating Incοme = Cοntributiοn Margin per unit * Units Sοld - Fixed

Expenses

Net Operating Incοme = $1.90 * 47,150 - $47,000

Net Operating Incοme = $42,585

Requirement 3:

Units Sοld = 41,000 - 3% * 41,000

Units Sοld = 39,770

Selling Price per unit = $6.00 + $1.10

Selling Price per unit = $7.10

Variable Cοst per unit = $3.00

Fixed Expenses = $47,000 + $5,000

Fixed Expenses = $52,000

Cοntributiοn Margin per unit = Selling Price per unit - Variable Cοst per unit

Cοntributiοn Margin per unit = $7.10 - $3.00

Cοntributiοn Margin per unit = $4.10

Net Operating Incοme = Cοntributiοn Margin per unit * Units Sοld - Fixed

Expenses

Net Operating Incοme = $4.10 * 39,770 - $52,000

Net Operating Incοme = $111,057

Requirement 4:

Units Sοld = 41,000 - 13% *

41,000Units Sοld = 35,670

Selling Price per unit = $6.00 + 20% * $6.00

Selling Price per unit = $7.20

Variable Cοst per unit = $3.00 + $0.40

Variable Cοst per unit = $3.40

Fixed Expenses = $47,000

Cοntributiοn Margin per unit = Selling Price per unit - Variable Cοst per unitCοntributiοn Margin per unit = $7.20 - $3.40

Cοntributiοn Margin per unit = $3.80

Net Operating Incοme = Cοntributiοn Margin per unit * Units Sοld - Fixed Expenses

Net Operating Incοme = $3.80 * 35,670 - $47,000

Net Operating Incοme = $88,546

Learn more about  income statement

brainly.com/question/28035395

#SPJ1

Which of the following is a major competitive dimension that forms a company's strategic operational competitive position in their strategic planning?
a. Straddling
b. Focus
c. Cost or price
d. Automation

Answers

Cost or price is a major competitive dimension that forms a company's strategic operational competitive position in their strategic planning. Option C

Competitive dimensions refer to the characteristics or attributes of a product or service that consumers regard as important when making a purchase decision.

Customers consider these dimensions when evaluating products or services from various suppliers in the market. As a result, they may select a product or service based on how well it fulfills their needs.

The following are the major competitive dimensions that shape a company's strategic operational competitive position in their strategic planning: Cost or price Quality Delivery speed Delivery reliability Coping with changes in demand Flexibility Innovation

Note: Straddling is a pricing strategy that involves charging prices that are higher than those of low-cost producers but lower than those of high-end producers. Automation is a manufacturing process that involves the use of machinery to produce goods. It is not one of the competitive dimensions of a product or service.

So, Focus is a competitive dimension that involves serving a particular market segment or niche. is the correct answers. The correct answer is C.

for more such questions on competitive.

https://brainly.com/question/14638856

#SPJ11

Arrange the following investments from highest to lowest return based on what our study has revealed about risk premiums.
1. Small-company common stock
2. Long-term corporate bonds
3. U.S. Treasury bills

Answers

In order to arrange investments from highest to lowest return based on what our study has revealed about risk premiums, we must look at the differences between the investment types.

Small-company common stock typically has a higher return due to its higher risk, while U.S. Treasury bills are considered low risk and have a lower return. Therefore, the investment with the highest return is small-company common stock, followed by U.S. Treasury bills. Small-company common stock has a higher risk premium compared to U.S. Treasury bills, which is why it has a higher return. This means that, when investing, an investor can expect higher returns with higher risk investments such as small-company common stock than they would with low risk investments such as U.S. Treasury bills.

For more questions on investments

https://brainly.com/question/27717275

#SPJ11

5. Why might a parent not want to co-sign a student loan? Explain

Answers

“Some people, incorrectly, trust cosigning to be like giving a reference,” Kantrowitz, said. “In fact, a cosigner is a co-borrower, equally obligated to repay the debt.” That potential that if your infant falls at the back of on his or her student mortgage bill, or goes into default, each of your credit scores will take a hit

What is the risk of cosigning a student loan?

You're jointly–and legally–responsible for the loan

So, if your pupil would not make repayments for any reason, you will be anticipated to make them. Missed payments can adversely impact your credit document as nicely as your student's.

Lenders or collectors may want to even sue you, garnish your wages or put a lien on your property in an effort to collect the balance of the debt

Learn more about cosigning a student loan here:

https://brainly.com/question/23714352#SPJ1

Below is the company data for Apple Inc, currently being traded on the US markets. The measures are stated om millions of USD currency.

· Cash & marketable securities $165

· Fixed assets $286

· Net sales $1320

· Earnings Before Interests and Taxes (EBIT) $143

· Net Earnings After Taxes (NEAT ) $ 66



· Quick Ratio ((CA-Inventory)/CL) 2.1 to 1

· Current Ratio (CA/CL) 3.4 to 1

· Average Collection Period (ACP) 45.60 days

· Return on Equity (ROE, NEAT/Net Common Equity) 13%

· Tax rate 25%

For Apples Liabilities & Equity side, they only report common equity, debt and current operating liabilities.

Based on the detailed information above, find the following calculations;

· (1) Accounts Receivables, (2) Current Operating Liabilities, (3) Current Assets, (4) Total Assets, (5) Net Common Equity, and (6) Debt. (10 marks)

· With the increase in online commerce, assume Apple has decreased its ACP by 15.60 days (i.e., totaling 30 days) while holding all other variables constant, how much cash could they generate? (10 marks).

· What is Apple’s ROIC (post-tax) ? (10 marks)

Answers

The ROIC of the given transaction is given as 8.05%

What is a Journal Entry?

A journal entry is the act of recording any transaction, whether one that is economic or not.

An accounting diary that displays the debit and credit balances of a corporation lists transactions. Several recordings, each of which is either a debit or a credit, may be included in the journal entry.

The net common equity is $508 and the total assets is $155

The current assets is $534, the accounts receivable is $165

If the average collection period decreased by 15.60 days, the additional generated cash would be $56

Read more about journal entries here:

https://brainly.com/question/14279491

#SPJ1

The image below contains the journal of the given data

which of these is a financial intermediary? answer unselected the u.s. government unselected a real estate brokerage unselected a bank

Answers

A financial intermediary is a middleman who connects borrowers and lenders.

It is a business that collects funds from lenders and then lends them to borrowers, making a profit by charging a higher interest rate on loans than it pays to lenders on deposits. It facilitates financial transactions between two parties by acting as a link between them. A bank is one of the most well-known financial intermediaries. It collects money from depositors and then lends it to borrowers, earning a profit on the difference between the interest rates paid to depositors and charged to borrowers.
Investment funds, pension funds, and insurance companies are other examples of financial intermediaries. Investment funds pool money from many investors and invest it in a variety of financial instruments such as stocks and bonds. Pension funds receive contributions from employees and their employers and invest them to generate retirement income. Insurance firms receive premiums from policyholders and pay out claims.
The US government is not a financial intermediary because it does not take deposits from lenders or lend money to borrowers. A real estate brokerage is not a financial intermediary because it is a firm that connects buyers and sellers of real estate, not borrowers and lenders.
In summary, a financial intermediary is a business that acts as an intermediary between lenders and borrowers. It collects funds from lenders and then lends them to borrowers, earning a profit by charging a higher interest rate on loans than it pays to lenders on deposits. Examples of financial intermediaries include banks, investment funds, pension funds, and insurance companies.

for more such questions on profit .

https://brainly.com/question/24553900

#SPJ11

Match each CRM technique with its description
-RFM
-loyalty programs
-clickstream analysis

offers discounts or free items to customers
who keep coming back
calculates a customer's most recent visit,
the frequency of visits, and annual spending
discovers through data mining what customers
have in common to predict behavior
tracks every image, link, or object that
a customer clicks
clustering

Answers

A loyalty program is a type of marketing strategy that aims to keep customers coming back to a business or using its services.

What precisely is RFM examination (recency, recurrence, and money related)?

RFM analysis is a marketing strategy that uses a quantitative ranking and grouping of customers based on the recency, frequency, and monetary total of their most recent transactions to identify the best customers and carry out targeted marketing campaigns.

What levels of clickstream investigation are there?

Clickstream investigation, which is a kind of Web examination (see a different section), is the following and examination of site visits. Clickstream investigation ordinarily screens and measures site movement by using the Internet server log records, regardless of the way that there are different techniques for gathering this information.

Two levels of clickstream analysis are possible: traffic analysis and an examination of online businesses.

tracks each image, link, or object clicked by a customer- clickstream analysisgives away free or discounted items to repeat customers.- loyalty programsdetermines a customer's most recent visit, the number of visits, and the amount spent annually- RFMuses data mining to discover what customers- clustering

Learn more about RFM analysis: https://brainly.com/question/28537349

#SPJ1

Which of the following will reduce aggregate demand?
a. an increase in real wealth
b. lower real incomes of the country's foreign trade partners
c. increased consumer and business optimism about the future
d. an increase in the expected rate of inflation

Answers

The answer to the question is an increase in the expected rate of inflation will reduce aggregate demand.

What is aggregate demand? Aggregate demand is the total demand for goods and services within a market at a particular time, which is used to measure the country's gross domestic product (GDP). It encompasses both private and public spending on products and services. Aggregate demand is influenced by many variables, including changes in monetary and fiscal policy, population growth rates, and consumer behavior. The impact of the expected rate of inflation on aggregate demand.

When there is an increase in the expected rate of inflation, the purchasing power of individuals reduces. People can afford to buy fewer goods and services with the same amount of money. As a result, they decrease their spending, which reduces the overall demand for products and services. As a result, aggregate demand is reduced, and the economy slows down. Other variables that influence aggregate demand.

The economy's total level of spending is influenced by several variables, including consumer spending, government spending, investment spending, and net exports. In particular, if business and consumer confidence increase, this can cause an increase in aggregate demand, which results in a boost to the economy. However, factors such as a decrease in consumer spending, reductions in government spending, or changes in monetary policy can cause a reduction in aggregate demand, which slows down the economy. Hence, an increase in the expected rate of inflation will reduce aggregate demand.

For more questions on aggregate demand.

https://brainly.com/question/1490249

#SPJ11

Operating leverage exists when:
Multiple Choice
a company utilizes debt to finance its assets.
management buys enough of the company's shares of stock to take control of the corporation.
the organization makes purchases on credit instead of paying cash.
small percentage changes in revenue produce large percentage changes in profit.

Answers

Operating leverage exists when a company utilizes debt to finance its assets.

What is operating leverage?

Operating leverage is a cost formula that measures the extent to which a company or project can increase operating profit by increasing sales. Companies with high gross margins and low variable costs have high operating leverage.  

The higher the operational leverage, the greater the exposure to forecast risk, and relatively small errors in earnings forecasts can lead to large errors in cash flow forecasts

One of the conclusions companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.

To know more about operating leverage -

https://brainly.com/question/29690696

#SPJ1

Refer to the diagram above. Based on the information illustrated in this graph, which of the following is an accurate statement? a) production should keep expanding because MR is always less than MC b) because this is a perfectly competitive firm, the profit maximizing rule is not P = MR c) profits will be reduced by production in the zone where MC exceeds MR d) because this is a perfectly competitive firm, the profit maximizing rule is not P = MC

Answers

The market with the most consumers, producers, and homogeneous items is considered to have perfect competition (identical).

What is homogeneous?

Homogeneous is an adjective used to describe a mixture or group of objects or substances that are all of the same kind, type, or form. It is the opposite of heterogeneous, which means made up of dissimilar or diverse components. Homogeneous mixtures are often referred to as solutions, which are uniform in composition. Examples of homogeneous mixtures include air, saltwater, and sugar dissolved in water.

The amount that maximises profit is produced at the point where production in the zone where marginal cost exceeds marginal revenue results in a profit reduction.

To learn more about homogeneous
https://brainly.com/question/28195989
#SPJ1

Complete Question:

Other Questions
A group of ten office workers recorded the distance, in kilometres, they walked on Monday. Their results are listed below. (a) Find the mean distance, in kilometres, walked by this group of office workers on Monday. The following box-and-whisker plot represents the results listed above. (b) (i) Find the value ofp. (ii) Find the interquartile range. Distances less thanrkilometres walked on Monday are considered outliers. (c) Find the value ofr. A group of twenty freelancers also recorded the distance, in kilometres, they walked during the same Monday. The mean distance walked by this group of freelancers on the Monday is1.7 kmwith a standard deviation of1 km. (d) (i) Find the total distance the group of freelancers walked on the Monday. (ii) Find the combined mean distance that all thirty office workers and freelancers walked on the Monday. (iii) On Tuesday, all twenty freelancers walked double the distance they walked on Monday. Calculate the variance in the distance walked by the freelancers on the Tuesday. which of the following contributed to population migration from the yellow river basin south to the yangzi river? This shape is made up of one half-circle attached to an equilateral triangle with side lengths 20 inches. You can use 3. 14 as an approximation for Why do grade 11s may already start making themselves more eligible for bursaries a microwave is stolen. it cost $300 two years ago and has an expected life of six years. a comparable microwave costs $400 today. what amount will the insurance company pay? a saturated a g c l solution was analyzed and found to contain 1.25 x 10-5 m a g ions. use this value to calculate the k s p of a g c l . Write a loop that computes and displays the sum of the Unicode values of the characters in a string variable named name. Provide your own string to store in name. Create a string called movie and store the title of a movie in it. Pick a movie whose title contains at least 5 characters. Using a for-loop and an if-statement, count and display the number of lowercase vowels in the movie title. (Hint: suppose ch stores a particular character from a string. The Boolean condition ch in 'aeiou' evaluates to True when ch stores a vowel.) in a group of 100 students 50 like online class and 70 loke physical class .represent in venn diagram and how many students like bith type pf classes standards promulgated by the fasb are most likely to be adhered to by which of the following governmental units? The data below represent a demand schedule. Product Price Quantity Demanded$30 1025 2020 3015 4010 50Using the midpoint approach, determine the price elasticity of demand between each of the following prices:Instructions: Round your answers to two decimal places. Enter your answers as a positive value (absolute value). a. Between P1 = $30 and P2 = $25, Ed= b. Between P1 = $25 and P2 = $20, Ed=c. Between P1 = $20 and P2 = $15, Ed= d. Between P1 = $15 and P2 = $10, Ed= | What impact did the Rodney king arrest have on society (a) Show that if is an eigenvalue of A, then is an eigenvalue of [tex]A^{T}[/tex]. Show with an example that the eigenvectors of A and [tex]A^{T}[/tex] are not the same.(b) Show that if is an eigenvalue of A, and A is invertible, then ^-1 is an eigenvalue of A^-1. Think about Marlene's relationship with her father and what it reveals about the story's theme. You should identify at least three moments in the story that reveal the theme and support your claim with textual evidence using in-text citation (page numbers--not lines) pleaseee im begging anyone for the steps of these questions i need them so urgently right now, i have the answer but not the steps pls anyone Imagine the following ten-person society featuring the threshold sequenceAlpha = {0, 1, 2, 4, 4, 5, 6, 7, 8, 10}.What would happen in this society? NEED HELP ASAP!!!Which polynomial best represents the scenario below? The total cost of Andre's school supplies depends on the price of each item. Each notebook (n) is $5, each folder (f) is $4, and each backpack (b) is $15. The following table represents the highest educational attainment of all adultresidents in a certain town. If a resident who is 40 or older is chosen at random, whatis the probability that they have only completed high school? Round your answer tothe nearest thousandth.High school onlySome collegeBachelor's degreeMaster's degreeTotalAge 20-29 Age 30-39 Age 40-49 Age 50 & over Total1567107856647185026132443035501713900969514910776151108525332519421980206251364975394243718521 Do you agree with the sentiments expressed in this speech? Explain. (3-4 sentences) Classify each titration curve as representing a strong acid titrated with a strong base, a strong base titrated with a strong acid, a weak acid titrated with a strong base, a weak basetaed with a strong acid, or a polyprotic acid titrated with a strong base. Strong acid/Strong base/ strong base Weak acid strong base Weak base Polyprotic acid strong acid strong acid strong base mL of titrant mL of titrant mL of titrant mL of titrant mL of titrant Cari owns a horse farm and a horse trailer that cantransport up to 8, 000 pounds of livestock and tack. Shetravels with 5 horses whose combined weight is 6, 240pounds. Let t represent the average weight of tack perhorse. Which of the following inequalities could be used todetermine the weight of take Cari can allow for eachhorse? O 6240 +t 8000O 8000 6240tO 6240 + 5t 8000O 8000 +6240 < 5tO 8000 6240 > 5twhat would the answer be, its multiply chose