Diversification is important in investing because "It helps you to balance your risk across different types of investments".
Explanation:
Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.
Purchasing better tools for workers to perform their jobs
Answer:
Inferior good
Explanation:
An inferior good is a good for which demand rises when income falls and demand falls when income rises.
on the other hand, Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Explanation:
The Journal entry is given below:-
1 January 2020 No Entry
31 December 2020 Compensation Expense Dr, 6,580
To, Paid-In-Capital 6,580
(Being the compensation expense stock-option plan is recorded)
Working Note:-
Compensation Expense
= $7 × 4,700 ÷ 5
= $7 × 940
= $6,580
