Answer:
d. leverage
Explanation:
Leverage -
It is a type of investment strategy , where the borrowed money is used .
It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage .
Hence , from the given scenario of the question,
The person uses borrowed money to increase the potential return of an investment .
Hence , from the question,
The correct term is leverage .
Answer:
1. Franklin Inc. is not under any legal obligation to pay divided to common stock holders. A company can only pay dividend when it makes profit. A company may not pay dividend even when it makes profit because payment of dividend at the discretion of board of directors. Dividends on common stocks are not fixed.
Payment of dividend to preferred stock holders is fixed because preferred stocks are fixed income securities. Dividend in this case does not depend on the financial fortune of a company. In case of cummulative preferred stocks, arrears of dividend in a given year can be carried forward to another year.
Franklin Inc is under a legal obligation to pay interest to debenture holders because the company is under bond to pay principal and interest as and when due. Bonds are also fixed income securities in which interest is fixed regardless of whether the company makes profit or not.
2. Rob Lowe is advised to invest in bonds because he is guaranteed of his principal and interest as and when due since the interest on bond and principal do not depend on the financial fortune of the company.
Explanation:
In the first case, explanations were made on the obligation of the company to pay dividend or interest.
In the second case, explanations were provided on the appropriate investment to undertake.
Answer:
Both parties have to continue with the contract since it cannot be rescinded because it has already been executed, Chelsea is living in the house and Jonas received the money. Since they probably will need a written contract for tax purposes, they can sign a contract with the same terms.
Answer: It is ineffective
Explanation:. Because it has no meaning its just someones opinion its not really anything that involves inportant stuff hope this helps :)
