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Ivanshal [37]
1 year ago
10

Explain the following factors that influence the choice of funding: risk

Business
1 answer:
konstantin123 [22]1 year ago
6 0

Risk is the major factor to consider when deciding the funding, when funds are provided it is a risk that whether the funds will be received or not.

<h3>What is Risk?</h3>

Risk is the threat of being unable to receive the funds back, this is the highest level of risk, there are many small risks too, but the highest level is losing the money.

There could be a small portion of loss of money or sometimes the debtor completely defaults so not a single penny is retrieved.

Funding is a choice and the debtor should be chose according to the risk appetite of the investor or lender on money.

There are investors who are risk averse are not willing to take the risk and fine with the less amount of returns and there are risk takers, who want high returns in return of high risk of defaulting.

Learn more about Risk at brainly.com/question/27331968#SPJ1

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On July 1, 2021, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,070,000 for the investment, and
forsale [732]

Answer:

Tremen's "Investment in Delany Company" account would have abalance of $3,214,000 at the end year of December 31 ,2021.

Explanation:

Dividend paid for the whole year = $170,000*4 = 680,000

= $3,070,000 + (40%)(1/2 of the year)($1,400,000 - $680,000

= $3,070,000 + 144,000

= $3,214,000

8 0
3 years ago
If 3,000 is invested at 7% for 6 months,how much simple interest is earned
Shtirlitz [24]
I believe the answer would be $126,000 because 3,000*7*6 equals 126,000. I may have done it wrong since I haven't done this in a while.
4 0
3 years ago
While visiting a client to deliver their 2019 tax documents, one of the owners approaches you and states: "The IRS says my trave
serious [3.7K]

Answer:

Commuting refers to travelling from your home to your workplace. It generally refers to the distance that people generally travel to get to their office or any type of workplace.

While business travel refers to not only leaving your house to go to work, but actually going somewhere else to perform your regular business activities, e.g. going form one state to another to close a sale. In order for business travel to be effectively recognized as such, it must be necessary for your business activity and it should last more than one ordinary workday.

In this case, your client continuously leaves his house and goes form one state to another performing his normal business activities. This perfectly fits the IRS's definition of business travel.

Initially, you can try to solve this issue with IRS Office of Appeals (since you are right), but if that doesn't work, then you can go to Tax Court.

6 0
3 years ago
Fred bought life insurance five years ago. He forgot to tell them that he had a heart condition, and, as a result of that condit
Readme [11.4K]

Answer:

<h2>The answer, in this case, would be option a. or Incontestability clause.</h2>

Explanation:

  • In the context of life insurance provision, incontestability clause basically refers to the prevention of the denial of insurance service by the insurer on ground of falsification or fraudulent misrepresentation of relevant fact or information in the insurance application.
  • Incontestability clause is officially applicable following the effective implementation of the insurance policy at least for a particular time period, which is usually considered to be two to three years.
  • The clause is commonly applicable in the case of life and health or medical insurance policies.
6 0
3 years ago
the business strategy of differentiation reflects unique and frequently innovative product, or service. true or false
RoseWind [281]

Answer:

TRUE

Explanation:

In simple words, differentiation strategy refers to the business strategy under which an organisation tries to get competitive advantage in the market by adding some unique features in the existing products or by introducing brand new products for utilization.

This strategy is used by service industries as well in which the organisations frequently introduce new technologies for better operating activities. Such strategies can sometimes lead to establishment of new industry in which the innovating firm gets the first mover advantage.

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