All categories

3 years ago

If there is a substantial increase in bad debts, what might this mean?

1 answer:

6 0

In the case of lending money (for a vehicle or a mortgage for example), this may be an indication of irresponsible lending practices. If there is a substantial increase in bad debts, it means that less creditworthy borrowers (borrowers who are less capable or likely to repay) are obtaining credit too easily.

In the case of bad accounts receivable for a company, there are similar implications, but it also could mean that the inventory that a company is selling is not being sold quickly enough by the retailer. One example could be ToysRUs having overdue accounts due to its partnered toy makers, such as Hasbro. It could be a sign that the demand for the product is not sufficiently high to sell the full amount of purchased inventory, at least when being sold through that retailer.

You might be interested in

You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee un-animously v

ivolga24 [154]

You reply that "OMOs are the purchase and sale of government securities. To increase the money supply we will buy government securities which increases the amount of reserves in the banking system and fuels deposit expansion".

Option: A

Explanation:

The action of central bank to offer or take liquidity from or into a bank or a collection of banks in its exchange rate currencies is understood as an open market operation or OMO. The central bank is the only origin of such policy which may either purchase or sell the bonds of government on the open market or in what is now often the acceptable option, engage into a repo or protected lending agreement with a commercial bank: the central bank lend the monetary as a reserve over a given period of time and concurrently selects the qualified asset as security.

Here the Chair of the Federal Reserve Board explained OMO for the purpose of their use in the scenario of increasing money supply, by purchasing or selling the bonds or securities of public authorities to eligible bodies for the increment of assets in banking sector to drive the expansion of deposits.

8 0

3 years ago

Why do large corporations want to become more like small businesses?

notsponge [240]

Answer:

Many large corporations want to become more like small businesses because they want to make their firm more flexible, resourceful, innovative, and competitive. ... For businesses based off the internet, they are able to adapt to market changes quickly.

3 0

3 years ago

Read 2 more answers

Seventy new jobs are opening up at an automobile manufacturing plant, and 1000 applicants show up for the 70 positions. To selec

777dan777 [17]

Answer:

As explained below, given that the score of the person is among the 0.03125 fraction of the best applicants, he can count on getting one of the jobs.

Explanation:

The hint is to use Chebyshev’s Theorem.

Chebyshev’s Theorem applies to any data set, even if it is not bell-shaped.

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean.

For this sample you have:

mean: 60
standard deviation: 6
score: 84

The number of standard deviations that 84 is from the mean is:

k = (score - mean) / standar deviation
k = (84 - 60) / 6 = 24 / 6 = 4

Thus, the score of the person is 4 standard deviations above the mean.

How good is that?

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean. For k = 4, that is:

1 - 1/4² = 1 - 1/16 = 0.9375

That means that half of 1 - 0.9375 are above k = 4: 0.03125

Then, 1 - 0.03125 are below k = 4: 0.96875

Since there are 70 positions and 1,000 aplicants, 70/1,000 = 0.07. The compnay should select the best 0.07 of the applicants.

Given that the score of the person is among the 0.03125 upper fraction of the applicants, this person can count of geting one of the jobs.

3 0

3 years ago

During April, Cavy Company incurred factory overhead as follows:Indirect materials $10,500Factory supervision labor 4,000Utiliti

Artist 52 [7]

Answer:

Date Account Title Debit Credit

April Factory Overhead $16,720

Indirect materials $10,500

Wages payable $4,000

Utilities payable $ 500

Accumulated Depreciation $ 620

Small tools $ 370

Equipment rental $ 730

3 0

3 years ago

PLEASE HELP ASAP WILL GIVE BRAINLIEST

Ulleksa [173]

Answer:

Explanation:

3 0

2 years ago