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s2008m [1.1K]
2 years ago
5

Two reasons why collateral is important to a borrower

Business
1 answer:
Mumz [18]2 years ago
7 0

The reasons why collateral is important to a borrower are:

  • It serves as borrower's credit worthiness .
  • Collateral minimizes the risk for lenders.

<h3>What is Collateral?</h3>

Collateral  can be regarded as item of value that is been used to secure a loan.

In a case whereby  a borrower defaults on the loan,it is possible for lender to seize the collateral and sell it to recoup its losses. Banks require collateral on certain types of loans.

Learn more about Collateral at;

brainly.com/question/14037774

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Weighted Average Cost Flow Method Under Perpetual Inventory System
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Answer and Explanation:

The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;

The perpetual inventory is the system which updated the inventory as on a regular basis

While on the other hand,  the weighted average cost method is the method in which the average cost is calculated after each every purchase is made

In the calculation below:

1. The weighted average cost of $30.90 come from

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1. The weighted average cost of $31.60 come from

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What is​ positioning? A. A part of a​ company-driven marketing strategy B. Dividing a market into smaller groups of buyers C. De
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For example, Wal-Mart has found that its most effective positioning strategy is to occupy the market place of the cheapest retail store. Wal-Mart does not try to appeal to everyone, it tries to offer the cheapest products in the market (which in itself has a very wide appeal, but the appeal is not universal anyway).

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Advertising is used to create an awareness of the product to the consumer using all forms of advertising such as radio jingle television advert, billboards etc.

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