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LenaWriter [7]
3 years ago
14

Wealth that is earned, saved and loaned out to make a profit is called _______________.

Business
2 answers:
Elena L [17]3 years ago
8 0
The correct answer is (a.) capital. The wealth that is earned, saved and loaned out to make a profit is called capital.Capital is also the money or wealth that an entrepreneur must have to produce services and good for the consumers.
Dmitry_Shevchenko [17]3 years ago
3 0

Answer:

A

Explanation:

Took test on EDG

(:

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On January 1, 2019, Amazon issues $100,000 in bonds having a stated rate of 10%. The bonds mature in 2 years (Dec. 31, 2020) and
Nutka1998 [239]

Answer:

cash                   96,535 debit

discount on BP    3,465 debit

          Bonds Payable          100,000 credit

Explanation:

We need to determinate the price at which the bonds were issued:

Which is the present value of the coupon payment and maturity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

Coupon payment: 100,000 x 10% / 2 = 5,000

time 4  (2 years x 2 payment per year)

rate 0.06  (12% annual / 2 = 6% semiannual)

5000 \times \frac{1-(1+0.06)^{-4} }{0.06} = PV\\  

PV $17,325.5281  

 

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity (face value)   $100,000.00  

time   4.00  

rate  0.06

\frac{100000}{(1 + 0.06)^{4} } = PV  

PV   79,209.37  

 

PV c $17,325.5281  

PV m  $79,209.3663  

Total $96,534.8944  

As the bonds are issued below face value there is a discount:

100,000 - 96,535 = 3,465

the entry will recognize the cash procceds and the creation of a liaiblity

we will also use an auxiliar account for the discount on the bonds

7 0
3 years ago
The primary purpose of the legal reserve requirement is to:
Marta_Voda [28]

Answer: The correct answer is choice C.

Explanation: The primary purpose of the legal reserve requirement is to provide a means by which monetary authorities can influence the lending ability of commercial banks. These policies are the way in which the Federal Reserve can control the money supply.

4 0
3 years ago
The business market consists of all the organizations that acquire goods and services used in the production of other products o
RideAnS [48]

Answer:

The major types of industries that make up the business market are agriculture industry, forestry industry, mining industry, manufacturing industry ; construction industry and transportation industry; communication industry, banking, finance and insurance industry.

Explanation:

a) Agricultural industry entails group of firms involving in rearing of animal and growing of both cash crop or food crop either majorly for commercial purpose / use

b) Forestry industries are group of firm who specialize in afforestation and deforestation of trees with a goal of maintaining environmental well-being, majorly for commercial purpose

c) Mining industry are industry who specialize in extraction from the soil raw materials required by other industries. Extraction like crude oil, Coal

d) Manufacturing industry are group of firm whose main objectives is to process raw material into finish good for use by the market and for commercials industry.

e) Transport industry are industry that specialize in movement of people and cargo from one destination to another through land, rail, sea or road

f) Construction industry specializes in buildings of building, roads, bridges and other structure for commercial

and personal use.

g) Communication industry specializes in enabling individual to transmit information from his end to another end.. It ranges from Media to Internet and Phone as all these fall under communication community.

h) Banking, Finance and Insurance industry are industry who accept deposit, gives loans to organisation, provide insurance cover over a particular risk, offers organisation financial advice, offers audit.

4 0
3 years ago
Help! I already choose one of the correct answers
Eva8 [605]
1,D u answered it 2,B 3,A 4,E 5,C
8 0
3 years ago
Why might the owner of a new technology business decide to incorporate her company as a corporation rather than operating as a s
Oksanka [162]

Answer:

Explanation:

B or C are the benefits of sole proprietorship,

D can be used by any organization,

so only A, raise capital by selling stock in company.

5 0
3 years ago
Read 2 more answers
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