Answer:
The correct answer is letter "B": To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
U.S. Treasuries are marketable securities issued by the U.S. government and available in increments of $100 per year. The U.S. treasuries have a maturity range of 10 to 30 years with the most common being 30 years. Interest is paid every six (6) months and is tax-free at the state level, but federally taxable.
<em>Investors ask for a higher interest rate compared to the rate on U.S. treasuries to balance the risk of their investment in case firms face economical issues.</em>
Answer:
The defense was not valid as per court.
Explanation:
The Indiana requirement of having license before initiating a credit business is to be fulfilled before starting the transactions and according to the customs when starting such business, a research is properly done to avoid any future claims and get firsthand knowledge of business initiation process.
Flinn’s statement to be unaware of the fact that it is necessary to get license, and non-criminal intentions are not justifiable as per the law because law is more of explicit things rather than implicit, i.e. acts and intentions, respectively.
So, the defense is not justifiable.
Answer: B. Provide information, analysis, and advice that is sound, reliable, and unbiased
Explanation: To improve the objective aspect of Lazar's work, he should consider the following;
1. Provide information analysis
2. provide advise that are sound reliable and unbiased.
A combination of the above will improve his work objective, this can also helped in presenting a sound presentation.
Keep the product:
Sales $500,000Variable Expenses 340,000
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Contribution Margin 160,000
Fixed Manufacturing 220,000
Net operating income (60,000)
Drop the product:
Sales $0
Variable Expenses 0
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Contribution Margin 0
Fixed Manufacturing 180,000
Net operating income (180,000)
Difference of keep and drop the product would be:Sales ($500,000)
Variable Expenses 340,000
-----------------------------------------
Contribution Margin (160,000)
Fixed Manufacturing 40,000
Net operating income (20,000)
Therefore, net operating income would decrease by $20,000 if Product A were dropped.
Answer:
e. Collateral
Explanation:
Collateral refers to the security given by the person in order to secure the right of the creditor.
As for example, if I take a loan from bank and then sign an agreement to pay in installments, then the bank might secure its payment through a collateral to be paid by me. For this I might give the bank papers of my house.
In the given case also, Dennis took the Television in exchange of money promised to be paid in installments. Further as for collateral he provided the owner the right to take back the television.
Thus, there is a collateral provided, and since he has defaulted in payment owner has the right to collect television back.