False. Risks of fixed costs of a business are more for an alliance than an independent firm. Businesses have risks and without any risk, comes a smaller reward. Taking a risk often yields a larger profit and room to grow/expand. Fixed costs are are costs that stay constant no matter the quantity of goods or service produced.
Answer:
2.5% is the current two years interest rate
Explanation:
If the first year interest rate is 2% and expected coming year interest rate is 3% based on the hypothetical projection which is believed to be correct, then the interests rate for the two years will be the average of the interest of the two years in focus which gives us:
Current IR = IR (yr 1) + IR (yr 2) / no of years
Current IR = 2 + 3 / 2 = 2.5
Answer:
D. Changes in federal expenditures
Answer:
A. usually have a lower interest rate than long-term debt.
D. are frequently used by large corporations as a significant component of capital structure.
Explanation:
A short-term bank loan can be defined as a type of loan that provides quick cash which mainly have a shorter repayment period when compared to a traditional loan.
Basically, when a small business owner (entrepreneur) or start-up needs to finance a temporal personal or working capital requirements but isn't eligible to apply for a line of credit from a bank; he or she can obtain a short-term bank loan.
Short-term bank loans usually have a lower interest rate than long-term debt and are frequently used by large corporations as a significant component of capital structure.
Answer:
c. $139,000 of net cash used.
Explanation:
Investing Activities shows results from Purchase or Sales of Assets or Investments.
Cash flow from Investing Activities
Purchase of equipment (150,000)
Proceeds from the sale of equipment 131,000
Purchase of land (120,000)
Net Cash used by Investing Activities (139,000)
Net cash flows from investing activities for the year were: ($139,000)
