1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Inga [223]
2 years ago
14

A hypothetical interest rate whose only function is to compensate lenders for the opportunities they forgo by not having access

to the loaned funds is called the ______.
Business
1 answer:
aev [14]2 years ago
6 0

An interest rate that is hypothetical and has the singular function of showing the returns that lenders forego when they don't have access to the loaned funds is pure rate of interest.

<h3>What is the pure rate of interest?</h3><h3 />

The pure interest rate is a rate that is found in perfectly competitive markets and relates to foregone profit.

This rate might be hypothetical but it functions to show how much returns those who loan money would gain if they had access to the money they loaned to a loanee.

This rate is impractical however because it assumes a world where there is no risk which is simply not possible.

In conclusion, this is the pure rate of interest.

Find out more on the pure rate of interest at brainly.com/question/20630240

#SPJ1

You might be interested in
Which of the following are correct descriptions of large corporations? a) Managers no langer have the incentive to act in their
balu736 [363]

Answer:

<u>b) The corporation survives even if managers are dismissed.</u>

<u>c) Shareholders can sell their holdings without disrupting the business.</u>

<u>Explanation:</u>

The above statements are correct descriptions of large corporations if consider;

1. A corporation is viewed as a legal entity, and so is believed to exist (survive) even if those who manage the corporation are dismissed.

2. Put simply, a shareholder holds some owns certain decision rights of a  corporation, thus, the shareholder can decide to sell their holdings to an interested party. However, the business would not be disrupted, as only the holdings of a particular shareholder were sold, and the new shareholder would normally want the best interest of the company that's why he made the deal.  

3 0
3 years ago
Difinition of effective communication
Tomtit [17]
The mutual understanding and listening to both parties. It helps create a stronger work relationship (this isn’t the exact answer it’s just in my own words)
7 0
3 years ago
Selecting a domain name that is similar to a rival firm is advantageous since it will show up on more search engines.
Paladinen [302]
It false your welcome
6 0
3 years ago
The process by which management evaluates long-term investment decisions involving long-term operational assets is called?
GalinKa [24]

The process by which management evaluates long-term investment decisions involving long-term operational assets is called capital investment analysis.

Companies and governmental organisations use capital investment analysis as a budgeting technique to evaluate the prospective profitability of a long-term investment. Long-term investments, such as those in fixed assets like machinery, equipment, or real estate, are evaluated using capital investment analysis. Finding the choice that can provide the maximum return on investment is the aim of this approach. Businesses may employ a variety of approaches to conduct capital investment analysis, which entails computing the cost of financing, the risk-return of the project, and the expected value of projected future cash flows from the project.

Investments in capital are risky since they entail sizable upfront costs for assets meant to last for many years and that will take a long time to pay for themselves. A capital project must meet a number of fundamental criteria, one of which is an investment return that exceeds the hurdle rate, or needed rate of return, for the firm's shareholders.

Learn more about investment here brainly.com/question/17252319

#SPJ4

8 0
1 year ago
Brown Company paid $40 in cash dividends.
Mice21 [21]

Answer:

Debited, left and credited, right

Explanation:

The journal entry is shown below:

Dividend A/c Dr $40

             To Cash A/c $40

(Being dividend is paid in cash)

As we see that cash is paid that means cash would be credited and it is shown on the right hand side of the T account whereas the dividend is debited that is shown in the left hand side of the T account

7 0
3 years ago
Other questions:
  • In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to:______
    5·1 answer
  • When a speaker is finished talking, you should allow for
    10·1 answer
  • Which responsibility centers generate both revenues and costs? investment and profit centers profit and cost centers cost and in
    8·1 answer
  • What is an advantage of a federal student loan
    7·1 answer
  • 8) A useful characteristic of money is that money
    15·1 answer
  • If only one person owns a business, it is called a _____ .
    12·2 answers
  • Having term limits on Boards of Directors for companies forces firms to rotate leadership to get new ideas. It also creates this
    8·1 answer
  • I need some rare car brands for my channel please do not include Mitsubishi, pontiac, and mazda.
    7·1 answer
  • Which action is an example of an expansionary monetary policy?
    12·1 answer
  • Mobile marketing has a unique ability to empower users by connecting with them individually and continuously. This socially netw
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!