Answer:
At Celgene, the environment is dynamic because of the speed of change and because of the number of changing factors . Resources are scarce .
The managers at Celgene are facing conditions of high uncertainty. This means that it will be difficult for them to make strategic decisions about the types of products the company will offer in the future.
Explanation:
From the short passage leading to the question the following points have been used in the answers provided:
a. dynamic: the change in the areas such as informatics, functional genomics and regulations means that the operating environment is dynamic not static
b. speed of change: the statement "evolve on a daily basis" shows a fast pace of changing conditions
c. number of changing factors: the factors changing include informatics, functional genomics and regulations.
d. resources are scarce due to expensive researches and difficulty in acquisition of stem cells.
e. high uncertainty: due to the rapid evolution, the managers do not predict accurately, hence a high degree of uncertainty
e. increase in uncertainty makes decision making difficult.
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Answer:
A.$2.99
B.$1.15
Explanation:
Frantic Fast Foods
A.Computation of the earnings per share for the year 20X
Using this formula
Earnings per Share=Earnings after Taxes/Shares Outstanding
Let plug in the formula
900,000/301,000
=$2.99
The earnings per share for 20X1 will be $2.99
B. Computation of the earnings per share for the year 201X
Earnings after Taxes= 301,000 * 1.28 = 385,280
Shares Outstanding=301,000 + 32,000 = 333,000
Hence,
Earnings after Taxes/Shares Outstanding
385,280 / 333,000 = $1.15
Therefore the earnings per share for 20X1 will
be $1.15 .
Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him?
Answer:
Yes, because he was negligent in not ascertaining its contents
Explanation:
Based on the information provided regarding the scenario at hand it can be said that Yes, this contract is binding upon Thomas because he was negligent in not ascertaining its contents. Each individual is responsible for completely reading and fully understanding the contents of the contract before they sign. Once an individual signs the contract it means that they fully agree with all that is specified in the contract and are held liable. Thomas should have waited until he had his glasses and read the contract before signing, regardless of what Steven had to say.
All of the following are functions of the Federal Reserve System EXCEPT:______
a. providing a system of check collection and clearing.
b. lending funds to risky customers denied credit by commercial banks.
c. supplying the economy with fiduciary currency.
d. acting as the government's fiscal agent.
Answer:
D
Explanation:
The others are all bank actions. THe last one talks about spies.
A company received a bank statement showing a balance of $78,000. Reconciling items included outstanding checks of $2,400 and a deposit in transit of $9,400. What is the company's adjusted bank balance
Answer:
Adjusted Bank Balance = $85,000
Explanation:
Adjustment of bank balance is a bank reconciliation procedure, that is used to match the amount in the bank statement with the amount in the company's balance sheet.
To adjust the bank balance, particulars that need to be subtracted or added to the bank statement balance has to be identified and treated accordingly.
For this example, the adjusted balance is calculated thus:
Adjusted bank balance = (Bank statement balance) - (outstanding checks) +(deposit in transit)
Adjusted Bank Balance = 78,000 - 2,400 + 9,400 = $85,000
Note:
outstanding checks are subtracted because they are payments to be made made by the company, representing a liability to the company (payer)
deposit in transit is an income to the company that has not been credited yet, but that will be credited.
On January 2, 2020, Bridgeport Company borrowed $174,000 from Lyon Country Bank. The terms of the loan agreement specified 4 equal annual payments at 4% annual interest. Compute the amount of each of these payments, assuming they begin on December 31, 2020.
Answer:
annual payment = $50,460
Explanation:
In order to solve this, we will use the formula for calculating simple interest on an invested amount over a period of time.
Simple interest = Principal × Rate × Time
Where:
Principal = $174,000
Rate = 4% = 4/100 = 0.04
Time = 4 years (4 annual payments)
∴ Simple interest = 174,000 × 0,04 × 4 = $27,840
Total amount to be paid = principal + interest
= 174,000 + 27,840 = $201,840
since 4 equal annual payments were made, the amount to be repaid is divided into 4. This is done as follows:
annual payments = 201,840 ÷ 4 = $50,460
Required information
Great Adventures Problem
The following information applies to the questions displayed below.
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $13,200. They expect to use the Suburban for five years and then sell the vehicle for $5,100. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,100 to GEICO for a one-year insurance policy.
The company spends an extra $4,200 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
An additional $2,300 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $1,000 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.
Required:
Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022.
Answer:
book value = $13,200 (purchase price) + $4,200 (paint) + $2,300 (accessories) = $19,700
useful life 5 years, salvage value $5,100
assuming the company uses straight line depreciation:
depreciation per year = ($19,700 - $5,100) / 5 years = $2,920 per year
the journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchased
Dr Suburban SUV 13,200
Cr Cash 13,200
July 1, 2022, vehicle's paint and accessories
Dr Suburban SUV 6,500
Cr Cash 6,500
the journal entry to record depreciation expense ($2,920 x 6 months)
December 31, 2022, depreciation expense
Dr Depreciation expense 1,460
Cr Accumulated depreciation - Suburban SUV 1,460
the journal entry to record insurance expense ($2,100 x 6 months)
December 31, 2022, insurance expense
Dr Insurance expense 1,050
Cr Prepaid insurance 1,050
1) The depreciation expense is :
Book Value = Purchase price + Paint + Accessories
Book Value = $13,200+ $4,200 + $2,300
Book Value = $19,700
Selling Value after 5 years = $5,100
Assuming :
Straight Line Depreciation:
Depreciation per year = (Book Value-Selling Value )/5 Years
Depreciation per year = ($19,700 - $5,100) / 5 years
Depreciation per year = $2,920 per year
The journal entries to record the purchase of the vehicle and the improvements are:
July 1, 2022, vehicle is purchasedDr Suburban SUV $13,200
Cr Cash $13,200
July 1, 2022, vehicle's paint and accessoriesDr Suburban SUV $6,500
Cr Cash $6,500
Journal entry to record depreciation expense ($2,920 x 6 months)December 31, 2022,
Dr Depreciation expense $1,460
Cr Accumulated depreciation - Suburban SUV $1,460
Record insurance expense ($2,100 x 6 months)Dr Insurance expense $1,050
Cr Prepaid insurance $1,050
Learn more about "Depreciation":
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Which of the following is true about the leveraging effect? Under economic growth conditions, firms with relatively low financial leverage will have higher expected returns. Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns.
Answer: Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns.
Explanation:
Under economic growth conditions, firms and organizations with more financial muscle usually have higher expected returns.
This Growth, is as a result of the change in the company's earnings, revenue, GDP or some other sources over a period of time (usually a year) to the next. This growth are usually not affected by inflation.
Review the "Types of Distribution Channels" study material. Explain why the selection of distribution channels is essential to a successful marketing strategy. Provide an example of a well-known company's distribution channels and defend their choices. In replies to peers, agree or disagree with their assessment and justify your response.
The correct answer to this open question is the following.
Although the question does not provide a specific text, we can say that the selection of distribution channels is essential to a successful marketing strategy because that is how companies deliver their products to consumers. This is of key importance due to the fact that there are numerous competitors selling the same or similar products so the company has to be precise and effective in delivering the product to match the client's expectations.
One good example of a successful company would be Underarmour. This Maryland company sells its products through direct distribution, uses intermediaries and brokers, has open many outlets where the company sells direct to the consumer, and also sells products through e-commerce portals. You can find Underarmour apparel in big chain stores, fashion stores, the internet, and sports stores.
Liability policies, such as personal liability, professional malpractice, or business liability insurance, do NOT protect the insured against a. a personal injury on the insured's property, such as the mail carrier who slips and falls on the owner's sidewalk. b. intentional harm caused by the insured. c. someone injured by the insured away from home or business. d. claims for property damaged by the insured.
Answer:
b. intentional harm caused by the insured.
Explanation:
Liability insurance is a means to provide the insured party with some protection against claims resulting from injuries and damage to people or property, covering both legal costs and any payouts for which the insured party would be responsible if found legally liable.
Note that there are two types of liability coverage: bodily injury and property damage. Most states in the US require liability coverages, subject to limits, which is the maximum amount the insurer will pay when the incident occurs. For example, a car accident can be expensive. This is why there is a limit of compensation which an insurer can offer.
Rodgers Inc. is imports paper from Shanghai China. In a typical transaction Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan. In all transactions, the amounts and payments are set today, but all deliveries, payments, and revenues come 90 days later. How can Rodgers hedge its foreign currency risk
Answer:
Rodgers can hedge its foreign risk by using a Contract to buy Yuan in the futures market today at an agreed upon price in 90 days.
Explanation:
Solution
Since Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan, so he has to hedge his exchange rate risk by buying or purchasing Yuan future contract for 90 days.
So, Rodgers Incorporation should make a contract to buy Yuan in the future market today at an agreed price in 90 days.
If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method.
a. True
b. False
A) I think the answer should be True
Felipe is an illegal immigrant seeking work in the U.S. He is hired by a small factory doing manual labor. When it is discovered that Felipe is an illegal immigrant:
a. Felipe can be deported, and the employer can be punished.
b. Felipe cannot be deported, and the employer will not be punished.
c. Felipe can be deported, and the employer will not be punished.
d. Felipe can be deported, and the employer can be punished.
bartleby Bramble Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 59,000 with terms 2/10 n/30. On July 9, 2020, Bramble received full payment for the July 1 sale. Prepare the required journal entries for Bramble Co.
Answer:
Dr cash $57,820.00
Dr sales discount $1180.00
Cr accounts receivable $59,000.00
Explanation:
Since payment was made during the discount period,hence the payment received would have been net of discount of 2%.
Discount=2%*$59,000=$1180
cash received=$59,000-$1,180=$ 57,820.00
The cash would be debited to cash account and the discount would also b debited to sales discount with the full amount being being credited to accounts receivable.
The following data is available for Oriole Company at December 31, 2020: Common stock, par $10 (authorized 29000 shares) $232000 Treasury stock (at cost $15 per share) $975 Based on the data, how many shares of common stock are outstanding
Answer:
23,125 shares
Explanation:
The computation of the number of outstanding common stock shares is shown below:
= (Common stock ÷ Par value per share) - (Treasury stock ÷ cost per share)
where,
Common stock is $232,000
Par value per share is $10
Treasury stock is $975
And, the cost per share is $15
Now placing these values to the above formula
So, the number of common stock outstanding shares is
= ($232,000 ÷ $10) - ($975 ÷ $15)
= $23,200 - $65
= 23,135 shares
The law of demand is based on the observation that:________.
a. people buy less of a product when the product becomes less fashionable.
b. stores go out of business if they lower prices.
c. people buy more of a product when the price falls.
d. people are indifferent to price changes.
Answer:
C
Explanation:
its C because if the price goes down for a product then you buy more of something you wanted to get more out of.
You purchase a bond with a coupon rate of 8.6 percent, a par value of $1,000, semiannual coupons, and a clean price of $860. If the next coupon payment is due in three months, what is the invoice price
Answer:
The answer is $881.5
Explanation:
Solution
Given that:
The accrued interest is refers to the payment (coupon) for the time with the fraction of the time that has exceed since the last coupon payment.
Since we have a semiannual coupon bond, the coupon payment for six months is 1/2 of the annual coupon payment.
Three months has exceeded since the last coupon payment.
So the accrued interest for the bond is given below:
Accrued Interest = $86/2 * 3/6
= $21.5
Thus
The price (dirty) = Clean Price + Accrued Interest
= $860 + $21.5
= $881.5
Therefore the invoice price is $881.5
A person who organizes a business and then runs it is called
Answer:
The answer is a business entrepreneur or just an entrepreneur
Explanation:
Watching shark tank helps you understand what is an entrepreneur
I hope this helps you
Stay safe:)
Bow Chicka Bow Wow
When a company borrows $150 million during the year and also repays $120 million of debt, the company can disclose the $30 million net amount as excess of borrowings over re-payments in the financing activities section of the statement of cash flows.
A. True
B. False
Answer:
B. False
Explanation:
Cash inflows and outflows for borrowing and repayment of debt are reported separately at gross amounts in the financial activities section of the cash flow statement.
When a company borrows $150 million during the year and also repays $120 million of debt. In this scenario, both amount of transaction (borrowing and repayment) will be reported separately at gross amount in the financial activities section of the cash flow statement.
A company had the following purchases and sales during its first year of operations:Purchases SalesJanuary: 10 units at $120 6 unitsFebruary: 20 units at $125 5 unitsMay: 15 units at $130 9 unitsSeptember: 12 units at $135 8 unitsNovember: 10 units at $140 13 unitsOn December 31, there were 26 units remaining in ending inventory. Using the perpetual FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)
Answer:
Explanation:
FIFO inventory costing method uses the assumption that the first set of inventory is the first to be sold.
Purchase
Month Unit rate Cost
January 10 120 1200
February 20 125 2500
May 15 130 1950
September 12 135 1620
November 10 140 1400
Total 67
Sales (FIFO)
January 6 120 720
February 4 120 480
1 125 125
May 9 125 1125
September 8 125 1000
November 2 125 250
11 130 1430
Closing Inventory
May 4 130 520
September 12 135 1620
November 10 140 1400
3540
Condensed financial data of Bonita Company for 2020 and 2019 are presented below. BONITA COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,180 Receivables 1,710 1,320 Inventory 1,590 1,920 Plant assets 1,890 1,710 Accumulated depreciation (1,220 ) (1,190 ) Long-term investments (held-to-maturity) 1,320 1,440 $7,120 $6,380 Accounts payable $1,190 $890 Accrued liabilities 210 260 Bonds payable 1,400 1,580 Common stock 1,940 1,660 Retained earnings 2,380 1,990 $7,120 $6,380 BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,720 Cost of goods sold 4,680 Gross margin 2,040 Selling and administrative expenses 920 Income from operations 1,120 Other revenues and gains Gain on sale of investments 80 Income before tax 1,200 Income tax expense 550 Net income 650 Cash dividends 260 Income retained in business $390 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.
Answer:
Statement of cash flows for the year ended December 31, 2020
Cash flow from Operating Activities
Income before tax 1,200
Adjustments for Non - Cash items :
Depreciation (1,220 - 1,190) 30
Gain on sale of investments (80)
Adjustments to Changes in Working Capital Items :
Increase in Receivables (390)
Decrease in Inventory 330
Increase in Accounts payable 300
Decrease in Accrued liabilities (50)
Cash generated from operations 1340
Income tax paid ( 550)
Net Cash from Financing Activities 790
Cash flow from Investing Activities
Purchase of Plant Assets (180 - 70) (110)
Proceeds from Sale of Investments(1,440 +80 - 1,320) 200
Net Cash from Investing Activities 90
Cash flow from Financing Activities
Repurchase of Bonds (1,580-1,400) (180)
Issue of Common Stock (1940 - 1660 - 70) 210
Net Cash from Financing Activities 30
Movement during the year 650
Cash and Cash Equivalents at Beginning of the year 1,180
Cash and Cash Equivalents at End of the year 1,830
Explanation:
The Direct method has been used : This must show adjustment to the Income before interest and tax.
The Statement of Cash flows is prepared under the following headings :
Cash flow from Operating ActivitiesCash flow from Financing ActivitiesCash flow from Investing ActivitiesClothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders’ equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total stockholders' equity at the end of 2021?
Answer:
The total stockholders' equity at the end of 2021 is $250,000
Explanation:
In order to calculate the total stockholders' equity at the end of 2021 we would have to calculate the transactions relating to stockholders’ equity times the $5 par value common stock as follows:
stockholders' equity at the end of 2021=Issue of 30,000 shares*$5+Issue of 20,000 shares*$5
stockholders' equity at the end of 2021=$150,000+$100,000
stockholders' equity at the end of 2021=$250,000
The total stockholders' equity at the end of 2021 is $250,000
Assume the assembly division of Baxter Bicycles wants to buy 5,800 trailers per year from the trailer division. If the trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions
Answer: $104
Explanation:
The Trailer division has the capacity to sell ALL of its inventory to outside customers for a price of $104.
They will therefore transfer the trailers to the Assembly line at the same price of $104 that they charge outside customers because anything less would be a loss on profit that could have been made from selling the trailers outside.
This loss on profit would affect the entire Baxter Bicycles and not just the Trailer Division so it is better to sell and transfer at the same price.
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made:________.a. if required by government regulations in the host market and for no other reason.b. only in its initial introduction into a market and only until the brand is recognized.c. by domestic competitors causing brand confusion and loss of market share.d. only when necessary to better connect the brand to consumers in different markets.e. when there is a serious drop in market share.
Answer:
Option (D) is the correct answer to this question.
Explanation:
Global brand adaptations are made except when necessary to better communicate the brand to consumers from different markets because it has a particular market image. Global brands are brands that are widely recognized around the world.
Companies which intend to create global brands must do the following:
Classify the perceived attractiveness of your product in each sector. Carry out studies of attitude and usage in each region you are planning to enter.Other options are incorrect because they are not related to the given scenario.
Faucet Company reported the following information for 2008: October November December Budgeted sales $620,000 $580,000 $720,000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Faucet receive in November
Answer:
Cash receipt for the month of November is $600000
Explanation:
The receipt of the cash will be such that the sales made in a particular month will be calculated half in the month of sale and half in the next month. Thus, the cash receipt from the accounts receivables for the month of November will be,
Cash received from the October sales = 620000 * 0.5 = $310000
Cash received from the November sales = 580000 * 0.5 = $290000
Total cash receipt in the month of November will be,
Cash receipt - November = 310000 + 290000
Cash receipt - November = $600000
Rogers Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work in process Finished goods Cost of goods sold Total
Direct materials $2,380 16790 43930 $63,100
Direct labor 1710 16060 42020 $59,790
Manufacturing overhead applied 1520 9880 26600 $38,000
Total $5,610 $42,730 $112,550 $160,890
Manufacturing overhead for the month was underapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The work in process inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:
a. $5,570
b. $5,575
c. $5,645
d.$5,650
Answer:
d.$5,650
Explanation:
Rogers Inc.
Work in process Finished goods Cost of goods sold Total
Direct materials $2,380 16790 43930 $63,100
Direct labor 1710 16060 42020 $59,790
Manufacturing overhead
Applied 1520 9880 26600 $38,000
% OF OH Applied 1520/38000 9880/38000 26600 /38000
4% 26% 70%
Total $5,610 $42,730 $112,550 $160,890
Under applied 4% of 1000 26% of 1000 70% of 1000
Under applied 40 260 700
Total $ 5650 42990 113250
We find the percentage of the manufacturing overhead applied and multiply it with the under applied amount. Then we add the underapplied amount to the total to get the actual amount.
Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio remains constant. If sales increase by 12 percent, what is the projected total retained earnings (hint: add the additional RE onto the current RE)? Currently, the firm’s sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.
Answer:
The projected retained earnings are $1538.76
Explanation:
Profit margin=net income/sales
profit margin is 9%
sales growth rate is 12%
9%=net income/($4,700*(1+12%))
9%=net income/5264
9%*5264=net income
net income=$473.76
Projected total retained earnings=$1190+$473.76-$125=$1538.76
Jerome is shopping for work supplies; he purchases 5 binders, 7 pens, and 3 reams of paper. The binders cost $4.50 each; the pens cost $1.10 each; and the reams of paper cost $4.25 each. The sales tax for his purchase is 7.75%. What is the total cost of Jerome’s purchase?
Answer:
$46.278625
Explanation:
5 blinder = 5 x $4.50 = $22.5
7 pens = 7 x $1.10 = $7.7
3reams =3 x $4.25 = $12.75
Total cost before sales tax= $42.95
Sales tax = $42.95 x 7.75% = $3.328625
Total cost after sales tax = $42.95 + $3.328625
Total cost after sales tax = $46.278625
Fill in the blank that completes the statement. Alonzo’s Crooked Cake Shop has had workers attempting to unionize in order to be able to work fewer hours per week. Alonzo’s argues in court that because there is only one other cake shop in the region, a strike and other union activities would disrupt competition in the cake business. Alonzo’s is using __________ to prevent union activities.
Answer:
Antitrust law
Explanation:
Alonzo is using antitrust law by arguing in the court that there is only one other cake shop in the region and a strike or union activities would disrupt competition in the cake business.
In antitrust laws, These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices.
Webster's Discount Appliances expects sales of $12,000, $15,000, and $25,000 during April, May, and June (big sale in June). To build business, Webster let's all customers buy on credit, and all do so. In the past, 20% of Webster's Discount Appliances sales have been collected during the month of sale, 65% are collected the following month, and 15% the month after that. If this trend continues, what will be Webster's total cash collections in the month of June
Answer:
$16,550
Explanation:
The computation of total cash collections in the month of June is shown below:-
Total cash collections in the month of June = (June sales × Percentage of collection) + (May sales × Percentage) + (April × Percentage)
= ($25,000 × 20%) + ($15,000 × 65%) + ($12,000 × 15%)
= $5,000 + $9,750 + $1,800
= $16,550
So, for computing the total cash collections in the month of June we simply applied the above formula.
An Indifference curve shows:
a. the one most desirable portfolio for a particular investor
b. all combinations of portfolios that are equally desirable to a particular investor
c. all combinations of portfolios that are equally desirable to all investors.
d. the one most desirable portfolio for all investor
Answer:
The correct answer to the question is option B (all combinations of portfolios that are equally desirable to a particular investor).
Explanation:
An indifference curve is a downward sloping graph that cannot Intersect showing two products that a consumer has no preference. Depends on the level of that consumer's income, the consumer chooses two products that give similar utility. The consumer shows no preference for any of the two products because if the products are close substitutes, it will be easier for the consumer to show no preference as they both give similar satisfaction, that is, the difference in the products is not obvious because they both serve a similar purpose to a consumer.
An investor would consider the indifference curve of any portfolio with a good utility score considering risk and finances as the combination of portfolios which would give the most satisfaction.