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victus00 [196]
4 years ago
13

A company investing borrowed funds expects to earn a return greater than the interest it will pay for the use of funds is using

Business
1 answer:
Naddika [18.5K]4 years ago
3 0

Answer:

Financial leverage

Explanation:

Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).

When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.

Use of equity is the only option where no extra cost is incurred for use of funds.

When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.

This practice is called use of financial leverage.

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Bob sold securities in Year 1. The sales resulted in a capital loss of $7,000. He had no other capital transactions. He and his
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Answer:

D. $1,500 in Year 1 and $5,500 carry over to Year 2

Explanation:

Base on the scenario been described in the question, Bob and his wife after selling securities in 1 year loss $7,000, but we saw that he was not having another capital, the return him and his wife will fill for one year and carrying over to the next with a $26,000 taxable income is $1,500 in a year and and the remaining $5,500 will be carried to the next two years .

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4 years ago
The differentiation strategy can be effective in controlling the power of rivalry in an industry because customers will seek out
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Answer: The correct answer is "customers are loyal to brands that are differentiated in meaningful ways".

Explanation: The differentiation strategy can be effective in controlling the poewer of rivalry in an industry because customers are loyal to brands that are differentiated in meaningful ways.

Once a company applies the product differentiation strategy over the competition, highlighting its own characteristic, such as good quality, durability, etc. the public will prefer it over that of the competition, because they will seek these characteristics.

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4 years ago
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The most basic form of concurrent ownership for unmarried persons recognized in california is
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The most basic form of concurrent ownership for unmarried persons recognized in California is "tenancy in common".

Concurrent ownership in land and property law, alludes to a property that can be claimed by in excess of one individual at a given time. It is now and again additionally alluded to as concurrent estate. The general population engaged with such an exchange can be joint occupants, co-inhabitants, or co-proprietors also.

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3 years ago
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3 years ago
Every time a company hires a new employee and trains them to take on the new role, what kind of risk are they
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The risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

<h3>What is a risk?</h3>

Risk can be defined as a possibility or a situation which is uncertain and involves exposure to danger. A risk from an investment perspective is the possibility of incurring losses due to market uncertainties.

When a company hire new employee, the company would expend some cost towards training of the newly recruited employee; which is termed financial risk.

Hence, the risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

Learn more about risk here : brainly.com/question/1224221

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