a firm with a single owner who has the right to all profits but who also bears unlimited liability for the frims losses and debts is knwon as

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Answer 1

A business which has a single owner is known as a sole proprietorship.

In a sole proprietorship, also known as a sole tradership, individual entrepreneurship, or proprietorship, there is no legal distinction between the owner and the business entity.

A solo proprietor has the option of hiring employees in addition to operating by themselves. The lone proprietor is responsible for all losses and obligations and receives all earnings subject to business-specific taxes. The proprietor is liable for all debts incurred by the company and is the owner of all of its assets.

Contrarily, a partnership requires a minimum of two partners this company is a single proprietorship.

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Related Questions

PLEASE HELP ASAP!!! FOR CAREER DISCOVERY!!!
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Choose three career terms or concepts you learned about in this unit. Explain them in your own words to a student who has never taken this course. Then explain how these concepts can help a person find a job or career that will meet their needs. Some terms and concepts you could choose from include:
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Answers

A career refers to your profession or chosen line of work, which can include one job or multiple jobs.

What is the meaning of a Career?

You maintain the same line of employment when you have a career. A career can consist of one or several jobs. You may work for a single company or several. A "career path" is another name for a career. Education, training, and work experience are all components of a career.

A career is the range of experiences you've had throughout your life. You are developing your career as you gain more knowledge in both the work and personal realms. Your professional path takes into consideration your education, training, and any work you have done for pay or not.

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In Country T, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In Country Y, it takes 40 resources to produce 1 ton of cocoa and 20 resources to produce 1 ton of rice. Country T has a comparative advantage over Country Y in cocoa. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion stems from which of these inaccurate assumptions?
We have assumed constant returns to scale.
We have assumed the prices of resources and exchange rates in the two countries are dynamic.
We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
We have assumed that agrarian nations do not specialize in producing particular products.
We have assumed diminishing returns to specialization

Answers

We have assumed there are barriers to the movement of resources from the production of one good to another within the same country. (Option D)

How do you explain the theory of comparative advantage?

In the theory of comparative advantage, it is assumed that there are no barriers to the movement of resources from the production of one good to another within a country, or between countries. This is necessary for countries to be able to specialize in producing goods where they have a comparative advantage and to engage in trade with other countries.

If there were barriers to the movement of resources, it would affect the ability of countries to specialize in producing certain goods and engage in trade, and would thus impact the conclusion that free trade benefits all countries that participate in it.

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sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth. group of answer choices true false

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False, sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth. Thus option (B) is correct.

What is sustainability?

The sustainability consists of fulfilling the needs of current generations without compromising the needs of future generations, while ensuring a balance between economic growth, environmental care and social well-being.

The environmental sustainability focuses on the conservation of biodiversity without foregoing economic and social progress.

False, sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth. Therefore, option (B) is correct.

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if you deposit $500 into a certificate of deposit earning 5.4 percent, what would be your earnings after 12 months?

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Using percentages we know that the earnings after 12 months will be of $27.

What is the percentage?

By dividing the value by the entire value and multiplying the result by 100, one may determine the percentage.

In mathematics, a percentage is a number or ratio that is expressed as a fraction of 100.

The percentage calculation formula is (value/total value)100%.

So, we know that:

We deposited %500 into a certificate of deposit earning.

We got an interest of 5.4%.

The amount we will receive after 12 months will be:

500 / 100 * 5.4 = $27

Therefore, using percentages we know that the earnings after 12 months will be $27.

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which of the following negotiation/conflict handling styles would be most appropriate in a situation in which a person must maximize his or her outcome and the relationship with the other person (and his or her outcome) is not important? accommodation competition avoidance collaboration/problem-solving

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Competition is the negotiation/conflict handling styles would be most appropriate in a situation in which a person must maximize his or her outcome and the relationship with the other person (and his or her outcome) is not important

The accommodation  concession/ conflict  running style is characterized by a collaborative  station and an emphasis on chancing  a  result to a given problem. This style of  concession seeks to prioritize the  requirements of the other party over one's own  requirements,  frequently performing in a palm- palm outgrowth.

There are five primary negotiation styles: accommodating, avoiding, collaborating, competing, and compromising. A successful negotiation often consists of one or more of these different negotiation styles.

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what is the freedom of information act (foia)? a. a law that prohibits sharing of protected health information. b. a law that requires government to give out certain information to the public when it receives a written request. c. a law that requires a hospital to send medical records at the request of the government. d. a law that prohibits providers from disclosing any financial interest they have in an entity they have referred to a patient.

Answers

Answer:

B a law that requires the govt to give out certain info to the public

Explanation:

Basically, FOIA is a law that allows people with a written request to ask for information that is publically available.  

Hope it helps

as a current lender to media general, would you refinance the $225 million term loan that is coming due? would you refinance the term loan as a new lender?

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As a current lender to Media General, I would not be likely to refinance the $225 million term loan that is coming due.

The repayment of the loan is coming due soon and I would be reluctant to extend the loan for a longer term as I would be concerned about the company's ability to repay the loan. If I was a new lender looking to refinance the term loan, I would need to take a deeper look at the company's financials, including their future cash flow and their ability to service debt, before making a decision.

I would also need to look at the terms of the loan and the risk associated with lending to Media General.

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which term refers to strategic initiatives that lower-level employees undertake of their own volition, typically in response to unanticipated events? multiple choice question.

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The term "autonomous activities" refers to strategic efforts that lower-level personnel carry out independently, usually in response to unexpected occurrences.

What is strategic behavior that is self-directed?

A bottom-up, autonomous strategic process is used by a product champion to facilitate the marketing of an innovative good or service.

Up till it was a success on the market, they commercialized the product there. For instance, FedEx is viewed as taking an autonomous strategic decision when they launch their delivery service overnight.

Why is autonomy necessary?

Workplace autonomy is essential for this reason. What is meant by workplace autonomy is allowing employees the ability to operate however they see fit. The way and when a task is completed is up to the employee who enjoys autonomy at work. Workplace autonomy will manifest itself differently depending on your industry.

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to determine the cost of producing each job or job lot, companies use a: multiple choice question. cost and profit accounting system. general ledger cost accounting system. job order costing system. process costing system.

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To determine the cost of producing each job or job lot, companies use a  job order costing system.

Which costing system is it?

In order to keep track of a company's expenses, a costing system was created.

                          The system consists of a number of forms, procedures, checks, and reports that are made to compile and provide management with information on profits, expenses, and revenues.

Which costing technique is employed by businesses that operate on the basis of job work?

Using the job costing approach, one can calculate the price of particular jobs that are carried out in accordance with the customer's requirements.  

                             It's a fundamental approach of costing that can be used in situations when the task is divided up into smaller projects or contract assignments.

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the highest form of competition is called a. monopolistic competition. b. arbitrage. c. equilibrium. d. perfect competition.

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Option (d), Perfect competition is the most prestigious type of competition.

Is perfect competition extremely fierce?

In an ideal market structure, there are no transaction costs and both producers and consumers have complete and symmetrical information. Many producers and buyers are competing with one another in this kind of circumstance.

Perfect competition is one economic concept of market structure. In marketplaces that are fiercely competitive and in which neither buyers nor sellers have an edge over one another, it is used by economists to analyze choices made and outcomes. In a market with perfect competition, all participants conduct honest transactions.

According to economic theory, perfect competition exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter or exit the market with no obstacles, consumers have complete or perfect knowledge, and businesses are powerless to set prices.

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which of the following is not a goal of audit planning? multiple choice to gain preliminary insight on the outcome of the audit. to determine materiality. to make sure that the firm has the appropriate staff to conduct the audit in accordance with the professional standards. to outline the specific audit procedures, including test of control and substantive tests that need to be executed properly in order to mitigate risk of material misstatement and be in compliance with the professional standards.

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The objective of audit planning is not to ascertain materiality. It is the aim of the auditing process.

What is audit planning?

Both internal and external audit work heavily involves planning the audit. Effective audit planning will enable the auditor to reduce risks, increase audit effectiveness, and achieve their goal with the least amount of work. Auditors must create a thorough audit strategy to guarantee that all audit risks are identified and that the right auditing techniques are used to find any areas of concern. An effective strategic audit plan must be created by the auditor. We carry out various audit procedures in accordance with the audit planning in order to assess the materiality of various financial statement items.

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professional skepticism dictates that when management makes a statement to the auditors, the auditors should

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Professional scepticism requires the auditor to pay attention to management claims while also attempting to verify the facts with documentary evidence.

Professional scepticism is described by the International Standards on Attitudes (ISAs) as "an attitude that comprises a questioning mind, being alert to conditions which may signal possible management due to error or fraud, and a critical examination of audit evidence." The auditor does not presuppose that management is dishonest or that honesty is unquestionable. Because they believe that management is being honest, auditors should not settle for less-than-persuasive evidence when using professional scepticism. Professional scepticism is described by the professional standards as "a mindset that involves a questioning mind, being sensitive to conditions that may signal possible misrepresentation due to fraud or error.

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which should you do when evaluating alternatives? group of answer choices evaluate alternatives in an unstructured and creative manner evaluate alternatives relative to a satisfactory standard evaluate alternatives based on what will work evaluate alternatives in terms of individual preferences and organizational goals

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What you should do when evaluating alternatives is to evaluate them against satisfactory criteria.

When evaluating alternatives, individuals should consider whether the alternatives are being evaluated in terms of (1) the expected impact, (2) the acceptance of the alternative by the parties involved, and (3) its compliance with organizational policies. must be verified.

Evaluating multiple options is important because the decision-making process may require multiple options. Certain criteria must be established to evaluate and compare each alternative. This provides a way to eliminate ineffective alternatives. Evaluating different options can help you know which ones are most likely to be successful in achieving your desired goals. The purpose of evaluating alternative courses of action is to select the most appropriate course of action to achieve organizational goals.

When evaluating alternatives, consumers often refer to the Evo, Inept, and Insert sets to help them make decisions. The brands and products consumers compare (their recall sets) represent the options they consider in their problem-solving process

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which category of roles does sara the store manager use when she makes up the weekly schedule for her employees? group of answer choices directive interpersonal decisional informational

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Sara the store manager uses when she makes up the weekly schedule for her employees uses directive decisional.

The correct answer is option A.

Their opinions are embedded in their own knowledge, experience, and explanation, rather than going to others for further information. The downside to this style is decision- timber is quick, power is clear, and it does not bear redundant communication. The directive decision- making style uses hot, decisive thinking to come to a result. A directive decision- maker has a low forbearance for unclear or nebulous ideas. They are concentrated on the task and will use their own knowledge and judgment to come to a conclusion with picky input from other individualities. Directive leaders take responsibility for decision- making rather than uniting with their platoon or incorporating hand feedback. They tell their followers what needs to be done and how it needs to be done, rather than letting them make their own opinions or choose their own path for negotiating tasks.

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management at growing green, a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, is evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing. in which stage of the international marketing process is growing green?

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Growing Green is in the stage of deciding which market-entry strategy is best for the International marketing process.

A marketing principle known as "global marketing" aims to serve the various requirements and desires of people who live abroad and to carry out marketing activities in several countries. Target markets, contract formation, management, and establishment in a foreign country must all be considered when choosing a market entry plan. The manufacturer of organic and landscaping materials must first choose the technique to use in order to reap the greatest benefits, including economies of scale, lower market costs, the capacity to leverage ideas, the advantages of e-marketing, and the ability to build relationships with political arenas.

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miguel and his wife are married and file taxes jointly. together, they make $96,300 annually. what is their effective tax rate?

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Miguel and his wife's effective tax rate is 23.1%.

To determine the effective tax rate for Miguel and his wife, we first need to find their total tax liability. The U.S. federal income tax system is progressive, meaning that tax rates increase as income increases.

For tax year 2021, the tax brackets and rates for married couples filing jointly are as follows:

10% on taxable income from $0 to $19,900

12% on taxable income from $19,901 to $81,050

22% on taxable income from $81,051 to $172,750

24% on taxable income from $172,751 to $329,850

32% on taxable income from $329,851 to $418,850

35% on taxable income from $418,851 to $628,300

37% on taxable income over $628,300

To calculate Miguel and his wife's tax liability, we need to determine their taxable income, which is their total income minus any deductions and exemptions. For simplicity, let's assume they take the standard deduction of $25,100 for married couples filing jointly in 2021.

Their taxable income would be:

$96,300 - $25,100 = $71,200

Using the tax brackets and rates above, we can calculate their tax liability as follows:

10% of the first $19,900 = $1,990

12% of the amount over $19,900 and up to $81,050 = $7,366

22% of the amount over $81,050 and up to $172,750 = $12,915

24% of the amount over $172,750 and up to $329,850 = $0 (they are not in this bracket)

32% of the amount over $329,850 and up to $418,850 = $0 (they are not in this bracket)

35% of the amount over $418,850 and up to $628,300 = $0 (they are not in this bracket)

37% of the amount over $628,300 = $0 (they are not in this bracket)

Their total tax liability would be the sum of these amounts:

$1,990 + $7,366 + $12,915 + $0 + $0 + $0 + $0 = $22,27

To find their effective tax rate, we divide their total tax liability by their total income:

$22,271 / $96,300 = 0.231 or 23.1%

Therefore, Miguel and his wife's effective tax rate is 23.1%.

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in the country of doran, all businesses are owned by the state. the government plans production, fixes commodity prices, and also directs investments to ensure they benefit the nation as a whole and not only a few individuals. what type of economy has the country of doran adopted? group of answer choices market mixed traditional command capitalist flag question: question 10 question 10

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since the question states that the government owns the producing equipment in the blank.

What has grown as a result of globalisation in wealthy advanced economies?

The total amount of money made by a nation's population and enterprises is known as its gross national income (GNI), which can be used as an alternative to the GDP to quantify and track a country's wealth. Whom to Produce For: The distribution of income within an economy is the issue at hand. Whether to make goods for high-income or low-income groups is a concern. People's ability to purchase products is influenced by their amount of income.

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net income affects the ending balance of the statement of retained earnings by it. a) increasing b) decreasing c) reconciling

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The net income affects ending balance of statement of retained earnings by increasing it.

What are retained earnings?

The portion of a company's net income that is still available for use after dividends and other distributions have been made to investors is known as retained earnings. The corporation keeps the balance of this sum. A company may decide to donate excess retained revenues to projects that will aid in the development of the company. To ascertain whether a company is indeed profitable, look at retained earnings. Retained profits at year's end serve as a measure of a company's genuine value because they represent what is left over after all obligations have been satisfied. It is possible for a corporation to reinvest in itself if it has retained positive earnings, which indicates that it has extra money to spare.

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job seekers should recognize that small businesses in the u.s.

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Job seekers who are interested in working in international business should be aware that small enterprises make up around one-third of the country's exports.

What does "Global Business" mean?

A company is considered global if it has operations (such as factories and distribution centres) in multiple countries. This is not like a global corporation that only operates in its home country but sells its products all over the world.

International trade, foreign direct investment, and international finance are the three primary subcategories of global business. International trade refers to the exchange of goods and services between nations. Foreign direct investment occurs when a company invests in a country other than its own.

Therefore, job seekers who want to work in global business should recognize that small businesses account for about 1/3 of the U.S.

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Your question is incomplete, but most probably the full question was,

Job seekers who want to work in global business should recognize that __________ businesses account for about 1/3 of the US.

Job seekers who want to work in global business should recognize that __________ businesses account for about 1/3 of the U.S.

Answer:

account for about 1/3 of the total US exports

Explanation:

for-profit organizations pursue several different types of goals such as profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. which of these statements is most accurate?

Answers

For-profit organizations pursue a variety of objectives, including Welfare is the most precise term.

Is choosing a market share target only important if you also have a profit goal in mind?

Only after establishing profit as a goal can you meaningfully choose a market share objective. A company should choose just one objective to help it stay focused. Only nonprofit organizations are allowed to pursue civic conscience and employee welfare objectives.

Do achieving high customer satisfaction levels typically result in higher costs and lower profits?

Goals for customer satisfaction are known to drive up costs and drive down earnings. The option of choosing responsibility to society and employee as objectives is only available to nonprofit enterprises. A company should choose just one objective to help it stay focused.

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How the classification of products is helpful to marketers?

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Classifying products into meaningful categories helps marketers decide which strategies and methods will help promote a business's product or service.

What is the importance of classifying products?

Products are divided into four divisions mostly according to customer buying habits, brand similarity to competitors' brands, and price range. By classifying their products, marketing personnel can develop strategies that specifically address the wants of consumers.

To assist in creating a selling strategy, marketing professionals classify all consumer items into four categories: convenience, shopping, specialty, and unsought.

The classification of products using the proper commodity code is the first and arguably most important step in the import management process. These codes give customs agents information on the importation of goods, their acceptability, and any potential taxes that may be due. Importers who improperly classify their goods are in violation of the law.

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Which of these feature debt securities or instruments with maturities of one year or less? None of these are correct. Primary Markets Over the Counter Markets Money Markets Secondary Markets

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Money Markets feature debt securities or instruments with maturities of one year or less. Money markets are the financial markets where financial securities are exchanged that have high liquidity and brief maturities, typically one year or less.

Treasury bills, certificates of deposit (CDs), commercial paper, and repurchase agreements are a few examples of money market instruments (repos). These financial products are viewed as low-risk, low-return investments. People, businesses, and governments frequently use money market investments as a way to generate a return on their money, manage their short-term liquidity needs, and park their cash for brief periods of time.

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Which type of phishing targets specific individuals and companies?

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Spear phishing, which is the first, refers to malicious emails delivered to a specific individual. Criminals that commit this crime will already be aware of the victim's name, email address, and place of employment.

What do you think of as employment?

The most common definition of "employment" is the state of possessing a paid job—being employed. When someone is hired, they get compensated for their labor. Employers are the ones who employ workers.

What type of employment have you been doing?

An employee's employment status refers to the privileges and safeguards to which they are legally entitled at work. The employment status affects the duties that employer has toward an employee.

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what’s the best way to have your business’ story remembered and shared?

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The best way to have your business' story remembered and shared is to Create emotional alignment between your business and your prospects and customers.

What are customers?

Customers are those individuals or businesses that purchase another company's goods or services. Customers are important because they drive revenues; without them, businesses cannot continue to exist. All businesses compete with other companies to attract customers, either by aggressively advertising their products, by lowering prices to expand their customer bases, or by developing unique products and experiences that customers love.

Businesses often honor the adage "the customer is always right" because happy customers are more likely to award repeat business to companies who meet or exceed their needs.

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the most recent financial statements for tran company are shown here: income statement balance sheet sales $ 44,600 current assets $ 18,460 long-term debt $ 37,620 costs 36,100 fixed assets 68,900 equity 49,740 taxable income $ 8,500 total $ 87,360 total $ 87,360 taxes (22%) 1,870 net income $ 6,630 assets and costs are proportional to sales. the company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. what is the maximum dollar increase in sales that can be sustained assuming no new equity is issued?

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3518.94, is the maximum dollar increase in sales that can be sustained assuming no new equity is issued in financial statements for Tran company.

What is financial statements?

The entry of a transaction in an account is referred to as a “financial statement.” The account has been updated to reflect the debit and credit transactions. Assets, liabilities, revenue, equity, and expenses are all types of financial activity.

The financial statements for Tran company are:

The sustainable growth rate = (Return on equity x Retention ratio) / [1 - (Return on equity x Retention ratio)].

Return on equity  = Net income / Total equity

Return on equity  = $6,630 / 49,740Return on equity  = 0.133

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 -  45%Retention ratio = 0.55

Now calculating substantial growth rate = (Return on equity x Retention ratio) / [1 - (Return to equity x Retention ratio)]

Now, calculating substantial growth rate = (0.133 × 0.55) / [1 - (0.133 × 0.55)]

substantial growth rate = (0.07315) / [1 - (0.07315)]substantial growth rate =  (0.07315) / 0.92685substantial growth rate = 0.0789substantial growth rate = 7.89%

Maximum increases the sales = $44,600 × 7.89%

Maximum increases the sales = 3518.94

As a result, the significance of the financial statement are the aforementioned.

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g $200,000 in your retirement account, make no new contributions, and can earn 8% (annually), how long will it take you to reach your goal of $1,000,000?

Answers

We may use the compound interest calculation to calculate how long it will take to reach the target of $1,000,000 is 6.33 years.

When you earn interest on your interest earnings as well as the money you have saved, this is known as compound interest. The amount of the initial loan, or principal, is multiplied by one plus the annual interest rate raised to the number of compound periods minus one to determine compound interest.

You will then be left with the loan balance plus compound interest.

A = P * (1 + r/n)^(nt)

Where:

A = the final amount

P = the initial amount ($200,000)

r = the annual interest rate (8%)

n = the number of times interest is compounded in a year (usually assumed to be compounded annually, so n = 1)

t = the number of years

t = log(A/P) / log(1 + r/n)

t = log(1,000,000 / 200,000) / log(1 + 0.08 / 1)

t = log(5) / log(1.08)

t = 6.33 years

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What does the time interest earned ratio measure?

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The time's interest earned (TIE) ratio evaluates a company's ability to service its debt based on current income.

What is the time interest earned ratio?

A company's capacity to make debt payments is gauged by its interest coverage ratio (ICR), also known as times interest earned (TIE).

EBIT or EBITDA divided by the total interest expense might be used to determine it.

Another debt ratio that gauges a company's long-term viability is the time's interest earned (TIE) ratio, which is sometimes referred to as the interest coverage ratio or fixed-charge coverage.

Based on current income, the time's interest earned (TIE) ratio assesses a company's capacity to service its debt.

Earnings before interest and taxes (EBIT) divided by the total interest due on bonds and other debt is the calculation for a company's TIE number.

Therefore, the time's interest earned (TIE) ratio evaluates a company's ability to service its debt based on current income.

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assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. labor hours needed to make 1 pound of pounds produced in 24 hours meat potatoes meat potatoes farmer 8 2 3 12 rancher 3 6 8 4 refer to table 3-4. the opportunity cost of 1 pound of meat for the rancher is

Answers

The opportunity cost of 1 pound of meat for the rancher is 4 Pounds of potatoes.

What is opportunity cost?

The value of the next-highest-valued alternative use of a resource is what economists mean when they talk about its "opportunity cost." You cannot, for instance, read a book at home during the time you would have spent seeing a movie and spend the money you would have spent on something else.

The worth of what you forgo while deciding between two or more possibilities is known as opportunity cost. Every decision involves trade-offs, and opportunity cost refers to the gains you could have gained by going in one route rather than the other.

Thus, 4 Pounds of potatoes.

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when local governments temporarily invest tax revenues in financial markets until the funds are needed, they become a of loanable funds. multiple choice question.

Answers

Local government becomes a supplier of loanable money when it temporarily invests tax receipts in financial markets until the funds are needed.

What treasury issues do state governments produce?

In India, the State Governments exclusively issue bonds or dated securities, which are referred to as State Development Loans, while the Central Government issues both Treasury Bills and Bonds or Dated Securities (SDLs).

Are investments in government bonds tax-free?

If tax-free bonds are sold within a year, the buyer is responsible for paying taxes according to their income tax bracket. In contrast, if the bonds are held for more than a year in compliance with section 112 of the Income Tax Act, the tax payment on the returns will be 10% without indexation or 20% with the advantage of indexation.

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you are bearish on telcom and decide to sell short 100 shares at the current price of $100 per share. if the broker's initial margin requirement is 50% of the value of the short position. how high can the share price go before you get a margin call if the maintenance margin is 30% of the value of the short position?

Answers

The stock price will trigger a margin call when it reaches $57.69 or more.

What is the margin call?

A margin call happens when the amount of the broker's required margin is less than the percentage of the investor's equity in the margin account. Securities purchased with a combination of the investor's own funds and funds borrowed from the investor's broker are held in the margin account of the investor.

A broker's request for more funds or securities from an investor to bring the value of the investor's equity (and the account value) to a minimum amount specified by the maintenance requirement is known as a "margin call."

a. The initial margin is $2,500 or 50% of $5,000.

b. The total assets are $7,500 ($5,000 from the stock sale and $2,500 contributed as margin).

Liabilities are 100P.

Net worth is therefore ($7,500 - 100P). When P = $57.69 or more and $7500P - 100P/100P = 0.30, a margin call will be made.

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Correct question:

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.

a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position?

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?

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