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I am Lyosha [343]
3 years ago
14

Is there a potential problem if governments continually finance goods and services by borrowing money ? A.Yes, it is unconstitut

ional for governments to borrow money. B) Yes, eventually their debts must be repaid with interest. C) No, governments can accumulate debts without limit. D) No, it is always easier to pay off the debts later.
Business
2 answers:
frosja888 [35]3 years ago
4 0
The answer is B,"Yes, eventually their debts must be repaid with interest.

dezoksy [38]3 years ago
3 0

Is there a potential problem when governments continually borrow?

B) Yes, eventually their debts must be repaid with interest.

A classic example in history was the experience of the French government under the Bourbon dynasty, which ultimately gave way to the French Revolution.

The French monarchy was the envy of Europe, and the Palace of Versailles maintained the most glorious lifestyle you could imagine. The royals and aristocracy lived large – too large. The government had accumulated 4 billion <em>livres</em> worth of debt by 1789. 1 <em>livre</em> in their monetary terms then = approx. $4 in our monetary terms in the US today, so that’s a $16 billion national debt. 40% of the government’s budget was going to pay interest on debts. And it kept getting worse. In 1786, for example, government income was 357 million <em>livres </em>and expenses were 555 million. So that's about 200 million added to the national debt in just one year. The debts kept piling on, and it was reaching a point when lenders were starting to say no to any further loans. The government had reached a position where it could not go forward without levying even more oppressive tax burdens on the people, and the people weren’t willing to pay.

It should be mentioned that, along with the regular lavish costs of the royalty and upper class lifestyles (all paid by the lower classes), a big part of the government’s debt had come from wars. There was the 7 Years War fought in Europe (1756-63) – known as the French and Indian War over here in the colonies. Losing that conflict didn’t sit well with France. And so when the colonial Americans broke out in revolution against the British monarchy, France devoted enormous financial aid (as well as officer support) to the Americans. The cost to France for supporting America’s revolution added up to 1 billion<em> livres </em> (about 4 billion in today’s dollars). This is part of what put France’s debt problem over the edge. When bankers and lenders would no longer give further loans to the French government, the series of events that led to the French Revolution fell into place.

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Liula [17]

Answer:

The total amount of paid-in ​capital is $552,000

Explanation:

The computation of the total amount of paid-in capital is shown below:

= Issue of common stock + issue of preferred stock

where,

Issue of common stock = Number of shares × issued price

                                       = 20,000 shares × $18 per share

                                      = $360,000

Issue of preferred stock = Number of shares × par value

                                       = 1,200 shares × $160 per share

                                       = $192,000

Now put these values to the above formula  

So, the value would equal to

= $360,000 + $192,000

= $552,000

5 0
3 years ago
General-purpose financial statements are the product of:____.
Neko [114]

General-purpose financial statements are the product of: <u>both financial and managerial accounting.</u>

<u />

<h3>What is the definition of general purpose financial statements?</h3>

The general definition of financial statements is to provide information about the effects of operations, financial position, and cash flows of an organization. This information is employed by the readers of financial statements to make judgments regarding the allocation of resources.

<h3>What are the three general objective financial statements?</h3>

The balance sheet, income statement, and cash flow information each offer unique pieces with information that is all connected. Together the three statements give a comprehensive portrait of the company's working activities.

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5 0
1 year ago
CEO compensation is often in the news. In response to this, some CEOs at large companies have agreed to set their base pay at $1
iren2701 [21]

Stock options and bonus's - in other words deferred compensation. These can be either vested or non vested, among other things.

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3 years ago
The corporate IT manager wants you to implement a process that separates corporate apps from personal apps on mobile devices. Wh
GarryVolchara [31]

Answer:

1. Sandboxing

2. Containerization

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The function of Sandboxing is to distinguish applications from one another and does not permit them to share the data, user etc

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Therefore according to the given situation, the option 1 and option 2 is correct

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2 years ago
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Answer:

Creative Sound Systems

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Cash outflow from purchase of equipment        ($25.1 million)

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<u>Cash outflow from purchase treasury stock          ($21.1 million)</u>

Net cash flows provided by financing activities     $19.1 million

6 0
2 years ago
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