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3 years ago

In 2 to 4 sentences, describe how money is channeled from savers to borrowers to investors.

Business

2 answers:

Alisiya [41]3 years ago

7 0

<h2>Answer:</h2>

The primary purpose of the financial markets is to route surplus reserves from people who have gathered from their salaries to people who need to finance their expenditure or corporations that require reserves to support capital investments. There are couple ways in which funds are routed from savers/donors to spenders/borrowers.

Direct Financing: Funds are loaned directly from savers to spenders.
Indirect Financing: Where an intermediary i.e. bank is involved between donors and borrowers.

vovangra [49]3 years ago

3 0

The borrower may chose to use the funds to invest in a business venture and thus be becomes an investor. Money is channeled through financial institutions such as banks. A saver saving with a bank account seeks to keep the money in the bank as it earns him interest.

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What should a manager ideally do after implementing a solution to a given work-related problem?

lions [1.4K]

After implementing a solution to a given work-related problem, the manager should EVALUATE THE OUTCOME OF THE SOLUTION.
The evaluation of the chosen solution is very important, it is needed to determine whether the solution chosen effectively take care of the problem or not. The evaluation process examines the effectiveness of the solution. <span />

7 0

3 years ago

Read 2 more answers

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15

Helga [31]

Answer:

D. Debit to Dividends Payable.

Explanation:

The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:

On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.

On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was <em>discounted</em>, because it is now in the hands of shareholders.

8 0

3 years ago

you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering

timofeeve [1]

Answer: D. I, II, and III

Explanation:

If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.

You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.

Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.

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3 years ago

The following information was available for Kingbird, Inc. at December 31, 2017: beginning inventory $70000; ending inventory $1

photoshop1234 [79]

Answer:

Inventory turnover ratio = 7.2 times

Explanation:

Given:

Beginning inventory = $70,000

Ending inventory = $108,000

Cost of goods sold = $644,000

Sales = $888,000

Find:

Inventory turnover ratio

Computation:

Average inventory = [Beginning inventory + Ending inventory] / 2

Average inventory = ($70,000 + $108,000) / 2

Average inventory = $89,000

Inventory turnover ratio = Cost of goods sold / Average inventory

Inventory turnover ratio = $644,000 / $89,000

Inventory turnover ratio = 7.2 times

5 0

3 years ago

Which kind of business organization does not allow for profit sharing?

Nataly_w [17]

The answer is d sole proprietorship

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3 years ago