It takes ur money out and away
Answer:
it has flexibility in setting prices of its products.
Answer:
d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller
Explanation:
A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.
Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.
Answer: When a company is able to offer a good product and enjoy strong customer demand, a franchise owner not only is able to take advantage of the corporate identity but its strong customer base, as well.
A franchise is a kind of a license which allows the party who acquires it (franchisor) access to an business' (franchisor's) proprietary knowledge and processes in order to sell products or provide services under the franchisor's name.
A franchisee associates itself with a well proven business model and gains access to the franchisor's customer base. Additionally, the franchisor provides assistance by training the franchisee and his personnel to provide a uniform product or service experience to customers across all the stores.
All these factors help in eliminating business risk and this constitutes a real advantage to a franchise.
Answer:
Profit Margin = income / sales
45,000 / 1,000,000 = 4.5%
Return on Assets = income / assets
45,000 / 250,000 = 18%
Assets turnover = sales / assets
1,000,000 / 250,000 = 4
Earning per share: income / shares outstanding
45,000 / 40,000 = 1.125
Price- Earning ratio = market price / EPS
28 / 1.125 = 24,89
Return on Equity = income / equity*
45,000 / 120,000 = 37.5%
Debt to Equity ratio liab / equity
130,000 / 120,000 = 1,08
Explanation:
*solving for equity
Assets = laib + equity
250,000 = 130,000 + equity
equity = 120,000
