Chapter 8

Front

What is the ratio of investments made by Bobby, Jill, Jake, and Lily if their total investment is $375,000?

Back

The investments are in the ratio of 2:5:9:4.

Front

How do you calculate the value of an individual's share in a business based on investment ratios?

Back

To calculate an individual's share, divide the total investment by the sum of the ratio parts, then multiply by the individual's ratio part.

Front

What is the formula to calculate percent loss when selling shares?

Back

Percent Loss = ((Purchase Price - Selling Price) / Purchase Price) * 100.

Front

If Hector Salamanca purchased 900 shares at $70.23 each and sold them for $25.35 each, what was his total loss?

Back

Total Loss = (Purchase Price - Selling Price) * Number of Shares = (70.23 - 25.35) * 900.

Front

What is the total investment made by Bobby, Jill, Jake, and Lily if their investments are in the ratio of 3:5:10:6?

Back

The total investment is $875,000.

Front

How do you determine the percent increase in the price per share of a stock?

Back

Percent Increase = ((New Price - Old Price) / Old Price) * 100.

Front

What is the gross capital gain when selling shares?

Back

Gross Capital Gain = (Selling Price - Purchase Price) * Number of Shares.

Front

If Lily wants to buy Jill out of her share, how do you calculate the worth of her share?

Back

Calculate Lily's share based on the investment ratio and total investment.

Front

What is the significance of understanding investment ratios in business partnerships?

Back

Investment ratios determine each partner's share of profits, losses, and decision-making power.

Front

How do you express a loss as a percent of the purchase price?

Back

Express the loss as a percent by using the formula: Percent Loss = (Loss / Purchase Price) * 100.