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2 years ago

What is it called when a company sells unused assets for a promise to buy them or similar assets back at roughly the same price?

1 answer:

7 0

Round-tripping is when a company sells unused assets for a promise to buy them or similar assets back at roughly the same price.

Round tripping occurs when one company sells unused assets to another party in order to generate sales, and later buys the assets back. For instance, a real estate company sells several properties to a related party in exchange of money and then buys them back a year later for the same price.

So doing this generates sales not only for the original seller, but also for the related party when it sells the properties back. The government also uses round-tripping in times of recession to increase money flow in the market.

Hence, round-tripping refers to money that leaves the country and makes its way back into the country though various channels.

To learn more about unused assets here:

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Suppose that the central bank has increased the money supply such that there is an additional $ 231115 in excess reserves. If th

Alex787 [66]

Answer:

$196448

Explanation:

Since the central bank has increased the money supply by $231115 but the reserve ratio is maintained at 15%, this means that 85% of the money is being injected in the form of money supply.

Hence, the maximum increase in money supply, the 85% of $231115 is: $196448.

Hope this helps.

Thank you and Good luck.

5 0

3 years ago

Read 2 more answers

A company's Cash account shows a balance of $5,600 at the end of the month. Comparing the company's Cash account with the monthl

Likurg_2 [28]

Answer:

cash 750 debit

note receivable 510 credit

NSF check 240 credit

-- to record increases of cash from reconciliation --

bank fees expense 44 debit

cash 44 credit

-- to record decreases of cash from reconciliation --

Explanation:

cash account 5,600

bank fees (44)

NSF 240

bank collected 510

adjusted cash: 6,306

We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.

5 0

3 years ago

You are taking a $6,226 loan. You will pay it back in four equal amounts, paid every year, with the first payment occurs at the

Pavlova-9 [17]

Answer:

annual payment = $2,362.88

Explanation:

we must first calculate the future value of the loan at the end of year 4 = $6,226 x (1 + 11%)⁴ = $9,451.51

using the present value of an annuity formula we can determine the annual payment:

annual payment = present value of an annuity / PV annuity factor

present value of an annuity = $9,451.51
PV annuity factor 11%, 4 periods = 3.1024

annual payment = $9,451.51 / 3.1024 = $2,362.88

4 0

3 years ago

Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzed, and Clue. The company h

Kamila [148]

Answer:

The correct answer is consumer- generating marketing,option B

Explanation:

Consumer-generating marketing is powerful marketing tool used in generating more sales in such a way that the products are marketed using existing customers' content such as product reviews and feedback to reach to more customers with aid of advancement in information technology.

Most companies have social media pages online, where they engage existing customers in order that new prospects can also be reached with least possible costs implication overall,in other words,customer acquisition cost is kept low.

8 0

3 years ago

According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh

gavmur [86]

According to empirical research, in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

Explanation

A Moral hazard is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

The moral hazard problem is less severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.

So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

3 0

3 years ago