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4 years ago

Advantages of borrowed capital

1 answer:

8 0

One of the advantages of borrowed capital is that interest rate is low because the debts are secured by the assets of the business. With sufficient capital, the potential rate of the profit will be high. The profit rate is higher than the interest rate from debt. Another advantage is that the interest from the borrowed capital is considered as an expense. The interest from the debt is included as an expense which is a deduction from the income. Thus, the income will be lesser and the income tax will also be lowered.

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When installing a motor control system, list four major factors to consider concerning the power system.

beks73 [17]

Answer:

power source, motor type , motor connection, and environment and controller

Explanation:

when we install motor control system

there are many factor which we consider while installing and they are as

power source that is need for operate machine
motor type that is depend on our work output
motor connection need horse power and service factor etc
environment that is also important for outside of equipment with dust and moisture etc
controller type it is depend upon type of motor and its purpose

so these are some type of factor which we consider while installing

5 0

3 years ago

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible p

nika2105 [10]

Answer:

The correct answer is: cut spending equal to the reduction in tax revenue.

The correct answer is: The negative consequences of the recession are magnified.

Explanation:

Recession is likely to cause a reduction in the aggregate demand, consumer income, and spending will decrease as well. As a result, the tax revenue to the government will fall as well.

A balanced budget means that government expenditures should be equal to revenue. So if the government wants to have a balanced budget it needs to reduce its spending by the same amount as the reduction in the tax earnings.

This will lead to a reduction in the aggregate demand further magnifying the effects of the recession.

7 0

3 years ago

Read 2 more answers

In the New Economy, people are most rewarded through education and intellectual growth when they spend years studying a broad ar

aliya0001 [1]

Answer:

False

Explanation:

The formal education setting has not been changing at the same rate with the daily changes in business, technology and other socio-economic elements.Therefore people who spend years studying a broad array of subjects in formal educational settings are less likely to be rewarded through education and intellectual growth.

7 0

3 years ago

The net increase (decrease) in cash reported on the statement of cash flows should reconcile the beginning and ending cash balan

avanturin [10]

Answer:

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Explanation:

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7 0

3 years ago

he hedge ratio of an at-the-money call option on IBM is 0.35. The hedge ratio of an at-the-money put option is -0.65. What is th

Kazeer [188]

Answer:

- 0.30

Explanation:

Given the following :

Hedge ratio of an at-the-money call option on IBM = 0.35

Hedge ratio of an at-the-money put option = - 0.65

Hedge ratio of an at-the-money straddle =?

Hedge ratio of an at-the-money straddle is given by :

(Hedge ratio of an at-the-money call option + Hedge ratio of an at-the-money put option)

Hedge ratio of an at-the-money straddle :

(0.35 + (-0.65))

= (0.35 - 0.65)

= - 0.30

5 0

4 years ago