An audit identifies poor coding, documentation, and billing practices so that additional training and education can occur and procedures can be adjusted. The statement is True.
The level of patient compliance with doctor's orders has not increased as a result of personal health records. The surgery section contains the CPT codes that are used the most frequently.
According to the OIG, compliance requires doing at least one coding audit each year. Additionally, all clinicians are encouraged by the Centers for Medicare & Medicaid Services (CMS) and the OIG to routinely have their coding evaluated by an impartial party skilled in their clinical speciality.
Always keep in mind that continual improvement is the ultimate goal of every audit, regardless of its nature or scope. Your practice has the chance to discover and stop compliance and payment concerns with national payers as well as give possibilities for staff development through the audit process.
Learn more about coding here:
https://brainly.com/question/9107826
#SPJ4
You buy a $100 ticket to a theme park and once inside you can ride on as many rides as you want at no extra cost. In this case, the opportunity cost of going on each ride will be zero. True or false?.
It's false you buy a $100 ticket to a theme park and once inside you can ride on as many rides as you want at no extra cost. In this case, the opportunity cost of going on each ride will be zero.
Opportunity cost is the time you spend studying and the money you spend doing something else. The farmer decided to plant wheat. Opportunity cost is the alternative use of growing another crop or resource (land and farm implements).
Opportunity cost is an economic term that refers to the value of something you have to give up in order to choose something else.
Learn more about Opportunity costs at
https://brainly.com/question/1549591
#SPJ4
an owner withdraws $60 cash for personal use. you would record this transaction in the accounting equation by decreasing the (cash/accounts payable/accounts receivable) account and (increasing/decreasing) the withdrawals account.
An owner withdraws $60 cash for personal use. you would record this transaction in the accounting equation by decreasing the cash account and increasing the withdrawals account.
The basic accounting equation formula is assets = Liabilities + equity. This equation states that the overall value of an entity's assets need to equal the whole fee of its liabilities plus its fairness. it's miles this easy equation that bureaucracy the muse for all economic statements.
The 3 elements of the accounting equation are belongings, liabilities, and shareholders' fairness. The components is straightforward: A corporation's overall belongings are identical to its liabilities plus its shareholders' fairness.
The accounting equation of a sole proprietorship is property = liabilities + proprietor's equity. For a corporation, the accounting equation is property = liabilities + stockholders' fairness.
Learn more about accounting equations here: https://brainly.com/question/24401217
#SPJ4
Kiara is a hostess at a fine French restaurant. She helps people make reservations and escorts them to their table when they arrive. The Hospitality and Tourism pathway that Kiara works in is:
A.
Lodging.
B.
Travel and Tourism.
C.
Recreation, Amusements, and Attractions.
D.
Restaurant and Food/Beverage Services.
Kiara is a hostess at a fine French restaurant. The Hospitality and Tourism pathway that Kiara works in is restaurant and Food/Beverage Services. Thus, option (d) is correct.
What is restaurant?
The term restaurant refers to space as the location of the people are the order of the food to as choice. A restaurant is provided the services to the customer. People are to exchange the services with the help of the money. Customer are to see the menu and the order to the food.
Kiara works as a waitress in a high-end French restaurant. When customers arrived, she helped them make reservations and took them to their tables. She was the restaurant's and food and beverage services' services.
As a result, the Kiara works in is restaurant and Food/Beverage Services. Therefore, option (d) is correct.
Learn more about on restaurant, here:
https://brainly.com/question/28587110
#SPJ1
customized consultations are available through the hr department; however, you must schedule your consultation two weeks in advance.
Customized consultations are available through the hr department; however, you must schedule your consultation two weeks in advance.
The statement is true.
As an educational vision and philosophy of the group, gives various kinds of custom-designed session meetings regarding pedagogical-technological elements which can be changed according to the TEs' content material, style and needs together with personal conferences varying in period, institution meetings, synchronous, and asynchronous workshops.
Consultations and trainings are to be had on-website online and thru webinar. Each member business enterprise is precise in how the paintings is performed. organizations in rural communities face distinct challenges than those in city facilities.
Organizations have desires aligned with their budgets, body of workers' capability, degree of community engagement, and organizational history. NSPN does now not provide “one size fits most” offerings. Recollect NSPN as your custom tailor – willing and ready to create the exceptional suit on your corporation.
Learn more about consultations here: https://brainly.com/question/23733837
#SPJ4
Your question is incomplete. Please read below to find the missing content.
Customized consultations are available through the hr department; however, you must schedule your consultation two weeks in advance.
State True or false.
which of these would allow a business owner to experiment with hiring more workers until profits are maximized?
The rational rule would allow a business owner to experiment with hiring more workers until profits are maximized.
A business is the interest of creating one's dwelling or creating wealth by using producing or buying and selling merchandise. it is also "any interest or organization entered into for income."
A commercial enterprise is described as an employer or enterprising entity engaged in industrial, commercial, or expert activities. businesses may be for-earnings entities or non-earnings groups. business sorts a variety from restrained legal responsibility corporations to sole proprietorships, groups, and partnerships.
The definition of business enterprise is an occupation or alternate and the acquisition and sale of products or services to make a profit.
Learn more about business here:https://brainly.com/question/24553900
#SPJ4
justify your answer by explaining how the weighted average cost of capital for the company would change if clark uses bank debt to finance all or a portion of the building purchase.
Justify your response by describing how using bank debt to finance all or part of the building purchase would affect the company's weighted average cost of capital.
What is WACC?The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. WACC is the typical interest rate a business anticipates paying to finance its assets. Because it expresses the return that both bondholders and shareholders require in order to provide the company with capital in a single value, the weighted average cost of capital is a popular method for calculating the required rate of return. She mostly used her own money to launch the company, demonstrating that she started with equity rather than debt. She isn't starting out with a lot of debt, therefore the needed rate of return would be below the average. She may now concentrate on growing the business rather than making ongoing debt payments. Due to decreased investment, the total rate of return ought should be lower. To be able to market what they produce, all they truly needed was indeed a retail location. This was not there in their prior store facility, which doubled as their kitchen. Because they truly lack any debt to begin with, Clark can utilize some bank debt. She can then experience failing(defaulting) on the loan she obtained. This would be primarily caused by her not having enough money to be able to pay down the debt effectively
To learn more about WACC, click on the link below –https://brainly.com/question/28042295
#SPJ4
otal annual inventory costs include all of the following except? group of answer choices marketing costs stockout costs carrying costs order costs
Total annual inventory costs include ordering costs, stockout costs and carrying costs except product advertising costs.
Inventory costs are the expenses incurred by a company when handling stocks in accounting and finance. The economic order quantity (EOQ) is the inventory level a company should order every time to reduce its total inventory cost.
The total inventory cost is calculated by adding stockout cost, carrying cost and ordering costs; that is:
Total cost= stockout/ purchase cost+ Carrying/ holding cost+ Ordering cost
Product advertising cost is not used in calculating the total annual inventory costs.
To learn more on total cost: brainly.com/question/14332852
#SPJ4
if firms are experiencing economic losses in the short run, firms will leave the industry, industry output will , and economic losses will in the long run.
The supply curve swings to the right, prices drop, and profits drop when new businesses enter the market. Companies keep entering the market until economic profits are nil. Businesses in an industry will leave if they are incurring financial losses. The supply curve turns left, raising the price and lowering losses.
A financial loss is a financial harm incurred by one or more individuals as a result of subpar service rendered by a company. The loss is not directly related to property loss or physical injury.
Financial loss occurs when a business has a discrepancy between the amount of money coming in and the amount of money leaving, resulting in a net deficit. Financial losses can be caused by a variety of factors, including a lack of consumer interest, ongoing legal proceedings, the cessation of business owing to a third party, and others.
Learn more about Financial losses here
https://brainly.com/question/17243432
#SPJ4
Assume that tastes change so that tennis is no longer as desirable to play as it is now. What would happen to the market for tennis balls?.
What will happen in the tennis ball market is demand follows, the equilibrium quantity is smaller, and the price is lower.
Market equilibrium is a condition in which the quantity demanded is equal to the quantity supplied at a certain price level. The definition of market equilibrium also means that the price of goods supplied is the same as the price demanded by buyers.
In business, you will certainly make a bargain to reach a certain price. It is this process that produces market equilibrium, where goods are sold and purchased at an agreed price.
The market equilibrium point is when the price tends to remain or is called the equilibrium price. This condition can occur based on the difference between supply and demand.
Demand that is higher than supply will cause prices to rise. Vice versa, a higher supply will make the price go down.
You can learn more about Market equilibrium here brainly.com/question/25300841
#SPJ4
can be useful in analyzing how a choice affects a particular market and shapes the economic system as a whole.
Microeconomics can be useful in analyzing how a choice affects a particular market and shapes the economic system as a whole.
The decision-makers are assisted by the study of microeconomics in analyzing and deciding how productive resources are distributed among various goods and services. Additionally, it aids in resolving the conundrum faced by producers on what to make, how much to produce, and for whom to produce.
What is the main purpose of microeconomics?The allocation of resources for production, exchange, and consumption by individuals and businesses is the subject of microeconomics. The study of economy-wide aggregates is left to macroeconomics whereas microeconomics deals with the prices and production in individual markets as well as the interaction between different markets.
Businesses can better understand consumer spending patterns and motivations by using microeconomics. What is sold, how it is sold, and why it is sold can all be influenced by the science behind how customers and even businesses buy. Ultimately, supply and demand govern almost every aspect of the business.
Learn more about Microeconomics here:
https://brainly.com/question/8102286
#SPJ4
How does the adjustment for depreciation differ from other deferral adjustments?.
Depreciation adjustments use a contra asset account instead of directly reducing asset accounts.
As a result, depreciation adjustment differs from those other deferral adjustments that do not employ a contra account.
For depreciation, an independent provision is made, that is shown on the liabilities side, and the value of asset is lowered by the quantity of depreciation provision formed.
Depreciation is a more complicated adjustment. Depreciation expands the price of non-current assets over their useful lives, resulting in a charge against profit on the profit or loss statement.
To learn more about depreciation adjustments: brainly.com/question/25530648
#SPJ4
during september, sally's hair salon purchased $900 of supplies on account. in october, sally's wants to make a payment of $200 on this bill. record the october transaction into sally's accounting equation by: (check all that apply.)
The impact of the payment of $200 bill is as shown below:
Decreasing Account Payable, $200
Decreasing Cash, $200
What does purchase on account mean?
Purchase on account means Sally's hair salon purchased the supplies on credit with a promise to pay later on, in essence, the purchase would increase assets, inventory and increase accounts payable since credit purchase results in a liability
Also, when making payment of $200 on the bill, the cash balance of the Sally's hair salon would decrease by $200 and also its accounts payable would also go down by the same amount.
Find out more about accounting equation on:https://brainly.com/question/17090843
#SPJ1
the process of comparing outputs to previously established standards to determine if corrective action is needed is called
When we compare outputs to previously established standards so that we can determine if there is a need for corrective action, this is called Controlling.
What is controlling?Controlling is a process in business where the company looks at outputs and compares them to the standards that they had previously established for the purpose of evaluating output.
The importance of this is to determine if there is a need to take corrective action to ensure that those outputs meet the established standards.
Find out more the control process at https://brainly.com/question/14051119
#SPJ1
this event celebrated america’s recent spate of inventions as well as its industrial and economic growth.
The Chicago World's fair celebrated america’s recent spate of inventions as well as its industrial and economic growth.
What was the significance of the Chicago World's fair?In 1893, the world's fair World's Columbian Exposition was held in Chicago in order to celebrate the 400th anniversary of Christopher Columbus' arrival in the New World in 1492.
The centerpiece of the World's Fair was held in Jackson Park which was a very large water pool. It represents the voyage Columbus that took to the New World.
Basically, the Columbian Exposition is also known as the Chicago World's Fair.
Learn more about the Chicago World's fair here:-
https://brainly.com/question/21276412
#SPJ4
in the yates v. u.s. case, what was the purpose of the court's decision? group of answer choices to decide whether an injunction was an appropriate remedy to determine the civil liability of fishers to interpret a statute both b and c
To interpret a statute was the purpose of the court's decision.
What is Court?
A court is any person or institution with the jurisdiction to arbitrate legal disputes between parties and administer justice in civil, criminal, and administrative affairs in conformity with the rule of law. Courts are the principal mechanism of conflict resolution in both common law and civil law legal systems, and it is widely assumed that all persons have the ability to bring their claims before a court. Similarly, persons accused of a crime have the opportunity to submit their defence in court.
In the yates v. u.s. case, to interpret a statute was the purpose of the court's decision.
To learn more about Court
https://brainly.com/question/18228641
#SPJ4
on january 3, 2021, madison corp. purchased 30% of the voting common stock of huntsville co., paying $3,000,000. madison decided to use the equity method to account for this investment. at the time of the investment, huntsville’s total stockholders’ equity was $8,000,000. madison gathered the following information about huntsville’s assets and liabilities:
The amount of goodwill associated with the investment is: C. $336,000.
Amount of goodwillFirst step is to calculate the Identifiable Excess Paid
Buildings=$600,000 − $400,000 = $200,000
Equipment=$1,400,000 − $1,200,000 = $200,000
Franchises =$480,000 − 0 = $480,000
Identifiable Excess Paid=($200,000 + $200,000 + $480,0000)×30%
Identifiable Excess Paid= $880,000 × 30%
Identifiable Excess Paid = $264,000
Second step is to calculate the book value
Book value=$8,000,000 × 30%
Book value= $2,400,000
Third step is to calculate the goodwill
Good will=$3,000,0000-$2,400,000-$264,000
Goodwill=$336,000
Therefore the amount of goodwill associated with the investment is: C. $336,000.
Learn more about goodwill here:https://brainly.com/question/22428604
#SPJ1
The complete question is:
On January 3, 2021, Madison Corp. purchased 30% of the voting common stock of Huntsville Co., paying $3,000,000. Madison decided to use the equity method to account for this investment. At the time of the investment, Huntsville's total stockholders' equity was $8,000,000. Madison gathered the following information about Huntsville's assets and liabilities:
Book Value Fair Value Buildings (10-year life)$400,000 $600,000 Equipment (5-year life) 1,200,000 1,400,000 Franchises (8-year life)$0 $480,000
For all other assets and liabilities, book value and fair value were equal. Any excess of cost over fair value was attributed to goodwill, which has not been impaired.
What is the amount of goodwill associated with the investment?
A. $264,000.
B. $600,000.
C. $336,000.
D. $480,000.
E. $0.
What is the liability in sole proprietorships and partnerships??
Answer:
Sole proprietors and partners have unlimited liability. The unlimited liability means that if you're unable to repay the debts of the business, your creditors can go after whatever you own.
the american dental assistants association (adaa) is: group of answer choices a tripartite organization. an organization formed by juliette southard. an organization for dentists. a tripartite organizations formed by juliette southard.
American Dental assistants association (ADAA) is a tripartite organization formed by Juliette Southard.
The American Dental Assistants Association (ADAA) is a professional organization for dental assistants. It will be 97 years old in 2022. According to President Susan Camizzi, the organization's mission is to advance the careers of dental assistants and to advocate for the dental assisting profession in areas such as education, professional activities, credentialing, and legislation.
To advance the Association's ideals and growth in order to improve public access to and delivery of quality oral health care. Dental Assistants perform highly technical skilled work in the dental office under the supervision of dentists in a wide range of tasks ranging from patient care to administrative duties to laboratory functions.
Learn more about American Dental Assistants Association (ADAA) here:
https://brainly.com/question/13959834
#SPJ4
a loan with lower payments in the early years that increase gradually until they are sufficient to amortize the loan fully is a(n) mortgage.
A loan with lower payments in the early years that increase gradually until they are sufficient to amortize the loan fully is a graduated payment mortgage.
A graduated payment mortgage or GPM is a type of fixed rate mortgage for which the payments do increase gradually from an initial low base level to a higher final level.
The purpose of a Graduated payment mortgage is to allow different homeowners to start off with lower monthly mortgage payments in order to help certain people to qualify for their loans.
Generally, the payments will grow between 7% to 12% annually from the initial base payment amount till the time of full monthly payment amount is reached.
To know more about graduated payment mortgage here:
https://brainly.com/question/24174269
#SPJ4
according to adam smith , self-interest and competition act as an invisible hand , guiding firms in a market-based economy.
According to the Adam Smith, self-interest of the consumer to purchase the product. The competition always in the market to direct the firm. Both are the market based economy.
What is economy?
The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country.
According to the Adam Smith, the firm are the making the product to fulfill the consumer need. The consumer purchase the product to according to her self-interest. The market is the competition basis of different brands and substitute products in the market.
As a result, both are the market based economy.
Learn more about on economy, here:
https://brainly.com/question/2421251
#SPJ4
the financial meltdown of 2008 was in part due to , demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.
The financial meltdown of 2008 was in part due to quants demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.
How did the financial meltdown of 2008 happen?
There were several reasons for the financial meltdown that the United States saw in 2008 and one of them was the overreliance on Quants.
Quants were quantitative models that were used to decide on the financial assets to invest in. They failed to predict the risks associated with Mortgage Backed Securities and this contributed in part to the meltdown.
Find out more on the financial meltdown of 2008 at https://brainly.com/question/25664180
#SPJ1
ge sells its large appliances directly to home and apartment builders but uses retail stores like lowe's to sell to consumers, in a strategy known as .
GE sells its large product directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as indirect channel. Companies obtain a major competitive advantage through indirect distribution.
They gain access to a larger consumer base without having to worry about getting the buyer through the door. This gives them more time to focus on their product, their customer base, and broadening their target consumer group. You would be using a direct sales channel if you went to a Nike store or the Nike website to buy a pair of their sneakers.
To learn more about consumers, click here.
https://brainly.com/question/27773546
#SPJ4
WHY WOULD IT BE PREFERABLE TO BE A SOLE TRADER?
Answer:
profit gained ìs enjoyed alone
decision making is faster
determine the missing amount in each of the following cases: assets liabilities stockholders' equity a. $420,000 $175,000 answer 245,000 b. answer 73,000 $31,000 $42,000 c. $121,000 answer 31,000 $90,000
The missing amount in each of the following cases is: $245,000, $73,000, $31,000.
Assets, liabilities and stockholders' equitya. Assets = $420,000
a. Liabilities = $175,000
a. Stockholders' Equity = $245,000
($420,000-$175,000)
b. Assets = $73,000
($42,000+$31,000)
b. Liabilities = $31,000
b. Stockholders' Equity = $42,000
c. Assets = $121,000
c. Liabilities = $31,000
($121,000-$90,000)
c. Stockholders' Equity = $90,000
Therefore the missing amount in each of the following cases is: $245,000, $73,000, $31,000.
Learn more about Assets, liabilities and stockholders' equity here:https://brainly.com/question/24534918
#SPJ1
The complete question is:
Determine the missing amount in each of the following cases: assets liabilities stockholders' equity
a.) Assets = $420,000
a.) Liabilities = $175,000
a.) Stockholders' Equity ?
b.) Assets = ?
b.) Liabilities = $31,000
b.) Stockholders' Equity=$42,000
c.) Assets = $121,000
c.) Liabilities = ?
c.) Stockholders' Equity=$90,000
operations consist of the ongoing work needed to ensure that an aorganization continues to function effectively
Operations consist of the ongoing work needed to ensure that an organization continues to function effectively, is a true statement.
What is operations in business?Operations refers to the management of your organization's internal procedures to guarantee optimal effectiveness. Regardless of whether you make stuff, sell products, or provide services, every small business owner must oversee the organizing and management of backroom labour.
A project manager must be concerned with delivering the intended scope and quality, subject to time and money constraints often referred to as performance.
Thus, it is a true statement.
For more details about Operations, click here:
https://brainly.com/question/20916293
#SPJ4
When a firm is deciding the ethics of outsourcing jobs to other members of the supply chain, what element of the marketing mix is being affected?.
When a firm is deciding on the ethics of outsourcing jobs to other members of the supply chain, the element of the marketing mix is being affected as the marketers should adhere to the AMA Code of Ethics for approaching every marketing.
The purpose of the Conduct of AMA Code is to define the behavioral standard which is expected in all interactions which take place in the AMA community and will be describing how those violations which are reported should be handled.
The American Marketing Association expects all of its employees, volunteers, sponsors, partners, as well as all others who are engaged with the AMA to practice upholding a commitment to the highest standards existing in ethical conduct. The AMA is fairly committed to, inclusion, transparency, and an environment that is under healthy working, which is being viewed as a foundation of the brand of AMA.
The Ethics statement addresses the position of AMA on the ethical standards which could be observed by marketers while practicing marketing techniques which is a part of their profession. This mainly includes research standards so as to apply to marketing purposes. The Behavior Expectations is outlining certain norms for those interactions that take place within an AMA community.
Learn to know more about market strategies at
https://brainly.com/question/25640993
#SPJ4
bob's bakery receives its utility bill of $800 for the month and pays it immediately. record this transaction in the accounting equation. multiple choice question. increase cash and increase accounts payable. increase expenses and increase cash. increase accounts payable and increase expenses. increase expenses and decrease cash.
Based on the fact that Bob's bakery received a utility bill and paid it immediately, the effect is increase expenses and decrease cash.
How does utility payment affect the accounting equation?Utility payments are expenses and when they are incurred, they go to the expense account to show that the expenses the company incurred have increased.
If the expense is paid off immediately, then the cash account will have to be credited to show that it is reducing on account of being used to pay the utilities.
Find out more on recording expenses at https://brainly.com/question/18522010.
#SPJ1
in preparing a cash flows from operating activities using the indirect method, an increase in accounts receivable would be (added/subtracted) to (from) net income
While preparing cash flows from operating activities (CFO), the increase in accounts receivable will be subtracted from net income.
The amount of money a company earns from ongoing, regular business activities such as manufacturing and selling goods or providing a service to customers is referred to as cash flow from operating activities (CFO). It is the first section shown on a cash flow statement. Long-term capital expenditures, as well as investment revenue and expense, are not included in cash flow from operating activities. CFO is also known as operating cash flow (OCF) or net cash from operating activities, and focuses solely on the core business.
Cash flow is one of the most important aspects of business operations because it represents the total amount of money transferred into and out of a company. It is significant for a variety of reasons because it affects the company's liquidity. It enables business owners and operators to see where their money is coming from and going, it assists them in taking steps to generate and maintain sufficient cash for operational efficiency and other necessary needs, and it assists them in making key and efficient financing decisions.
Learn more about cash flows from operating activities (CFO) here:
https://brainly.com/question/16294753
#SPJ4
a u.s. manufacturing company operating a subsidiary in an ldc (less-developed country) shows the following
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following answers in different parts and in terms of productivity.
a) The labor productivity (U.S.) = Output / Labor(hours) = [tex]\frac{100505}{19550}[/tex]= 5.14
The labor productivity (LDC) = Output / Labor(hours) = [tex]\frac{19600}{14550}[/tex]= 1.34
The capital productivity (U.S.) = Output / Capital Equipment (hours) =
[tex]\frac{100505}{58600}[/tex] = 1.71
The capital productivity (LDC) = Output / Capital Equipment (hours) =
[tex]\frac{19600}{4550}[/tex] = 4.30
b) The multifactor productivity (U.S.) = Output / Labor + Capital =
[tex]\frac{100505}{19550} + 58600[/tex]= 1.28
Multifactor productivity (LDC) = Output / Labor + Capital =
[tex]\frac{19600}{14550} + 4550[/tex]= 1.02
c.)Raw Material Productivity (U.S.) = Output / raw material = [tex]\frac{100505}{20500}[/tex] = 4.90
Raw Material Productivity (U.S.) = Output / raw material = [tex]\frac{19600}{19550}[/tex] = 1
Note that the full question is:
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:
US LDC
Sales (units) 100,505 19,600
Labor (hours) 19,550 14,550
Raw Materials (currency) $20,500 $19,550
Capital Equipment (hours) 58,600 4,550
a) Calculate partial labor and capital productivity figures for the parent and subsidiary.
b) Compute the multifactor productivity figures for labor and capital together.
c) Calculate raw material productivity figures (units/$ where $1 = FC 10).
Learn more about productivity https://brainly.com/question/2992817
#SPJ4
A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is.
A hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
What is a hedge fund?It should be noted that the hedge fund simply means a pooled investment fund which trades in liquid assets. This is usually managed by the professional fund managers.
Therefore, a hedge fund purchased credit default swaps on securities it did not own because it believed that the securities were likely to default. In this example, the hedge fund is speculating.
Learn more about hedge fund on:
brainly.com/question/25536383
#SPJ1