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melamori03 [73]
3 years ago
7

What are high-risk loans?

Business
2 answers:
Nesterboy [21]3 years ago
7 0
The answer should be C
Stolb23 [73]3 years ago
5 0

The answer is: C). loans that are given to consumers with bad credit

Consumers with bad credit tend to have high chance of not be able to give back their loan. This is why these consumers are considered to be 'high-risk' in the perspective of the credit providers.

Bad credit usually obtained due to inability to pay credit in the past, had higher spending compared to the amount of income, and do not possess any assets that can be used as collateral.

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On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
shusha [124]

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0
3 years ago
When people have insurance against a certain event, the notion that those people are less likely to guard against that event occ
sp2606 [1]

Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>

Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;

However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

4 0
3 years ago
In applying fiscal policy Conservatives will normally seek to limit government and will be inclined to ________ taxes (T) during
telo118 [61]

Answer:

Decrease

Explanation:

Fiscal policy is an important policy tool which is used by the government to account for revenue and expenses. During a boom stage, when the economy is improving the government implements more taxes. Similarly, in a recession period, where economic growth is negative an expansionary discretionary fiscal policy is applied. In this type of fiscal policy, taxes and government expenses both are concentrated to remove the pressure.

8 0
3 years ago
What is the purpose of a marketing plan?
Elza [17]

Answer:

The is purpose of marketing plan is to:define strategies to engage audiences in order to achieve business objectives

Explanation:

hope it helps

4 0
3 years ago
Suppose the government increases the corporate income tax rate. this is
ExtremeBDS [4]
<span>part of a contractionary fiscal policy</span>
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3 years ago
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