<span>People who want to obtain credit from financial institutions can
use their property rights to do so.</span>
The concept of this
sentence means that if people want to loan from banks or other financial
institutions, they can use their properties as collateral or to guarantee that
they will be able to repay their loan or credit.
Read it, it's in the paragraph.
Answer:
d. is a potential liability that has arisen because of a past event or transaction.
Explanation:
A contingent liability refers to an obligation which arises owing to past events or transactions, whose happening is improbable i.e it may or may not arise in the near future.
If the effect of such a liability can be reasonably estimated, then these should be provided for as a footnote in the financial statements.
An example of a contingent liability would be a legal suit filed against the company, if lost would lead to an obligation for damages which the company may have to pay.
Answer:
The answer is: B.) XYZ's product is a close substitute for the locally available goods.
Explanation:
A substitute product can be defined as a good a consumer perceives as similar or comparable to another good (e.g. cow and chicken meat). Generally speaking, when the price of one of these goods increases, the demand for its substitute good increases.
In this case, Darren believes that since XYZ´s product is cheaper it should sell better than its competition (close substitute goods).