1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nekit [7.7K]
2 years ago
6

Which of the following statements is TRUE? (economics)

Business
1 answer:
Angelina_Jolie [31]2 years ago
6 0

Answer:

c

Explanation:

Banks are other lending entity's has access to a customer borrowing history. Through credit rating agencies, a bank can know whether a customer has a bad history in making loan repayments.

When a customer takes up a loan, banks share that information with a credit rating agency. The agency updated its records with the customer's national identity, such as the social security number. The banks keep on updating agencies on how each customer is meeting their obligation. Credit card payments are considered as loans.

Credit agencies rates each customer creditworthiness by assessing how they been repaying their debts. A higher credit score means the customer repays his loans promptly without missing installments. The information of each customer is available to all banks and lenders upon request.

You might be interested in
Imagine an influential new study shows that eating eggs drastically reduces the risk
sweet-ann [11.9K]
The correct answer would be d
3 0
1 year ago
The Nasdaq Composite Index: a. is made of of mainly newer, smaller firms. b. is a price-weighted index. c. is made up of over 50
rodikova [14]

Answer:

A. is made of of mainly newer, smaller firms.

Explanation:

4 0
3 years ago
Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e
anygoal [31]

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier

Substituting the values from the question in the DuPont identity we get,

0.1964 = 0.051 * 2.3 * Equity Multiplier

Equity Multiplier = \frac{0.1964}{0.051*2.3}

Equity Multiplier = 1.674339301


Equity Multiplier = \frac{Total Assets }{Equity}

So,

\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}

Substituting the value of equity multiplier in the formula above we get,

\frac{Equity}{Total Assets} = 0.597250509

Now,

\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1

So,

\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}

\frac{Debt }{Total Assets} = 1 - 0.597250509


\frac{Debt }{Total Assets} = 0.402749491


Now that we have the proportions of debt and equity to total assets, we can  find the Debt Equity (D/E) ratio as follows:

\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}

Substituting the values we get,

\frac{D}{E} = \frac{0.402749491
}{0.597250509
}

\frac{D}{E} = 0.674339301


3 0
3 years ago
The purpose of cascading the balanced scorecard throughout the organization is: _____________
frez [133]

Answer:

b. To ensure strict hierarchical control of the organization.

6 0
2 years ago
The top management of Kryptos Inc., a supplier of office stationery to large IT corporations, is involved in a meeting with its
liubo4ka [24]

Answer:

Jury of Executive Opinion

Explanation:

Jury of Executive Opinion method of sales forecasting employs the views of to management in various section. They are are experienced and have good knowledge of the market factors and are able to predict the expected sales. They are able to forecast sales figures through estimates and previous experiences. All internal and external factors are taken into account. Their judgements are pooled together and averaged in drawing the sales forecast of Kryptos Inc.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Last year Emery Industries had $450 million of sales and $225 million of fixed assets, so its FA/Sales ratio was 50%. However, i
    8·2 answers
  • Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as §1231 asset
    13·1 answer
  • You’ve been asked to add a new customer for your client in their QuickBooks Online company, so, you go to the Sales Center and s
    8·1 answer
  • Prepare various types of budgets
    9·1 answer
  • Rubina convinced mariah to start a business with her in a partnership rather than a sole proprietorship. the disadvantage of a s
    5·1 answer
  • With regard to the three types of attributes customers use in evaluating the quality of goods and services, a vacation would bes
    9·1 answer
  • Which of the following methods of employee evaluation is best used when employees are heavily involved in teamwork? Critical inc
    6·1 answer
  • Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
    9·1 answer
  • At the beginning of the current accounting period Blazer Company had a $40,000 balance in its Finished Goods Inventory account.
    14·1 answer
  • Because stocks rely on dividends as the principal source of cash flow, ascertaining stock prices is an easier and more precise p
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!