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3 years ago

What is a disadvantage of using credit?

Business

2 answers:

Rom4ik [11]3 years ago

5 0

Not being able to pay it off is a big one.

nataly862011 [7]3 years ago

4 0

Answer:

Incurring inflated interest charges over and above the principal amount

Explanation:

When items are purchased on credit, it essentially means that the buyer has taken a loan to finance their purchase. This loan incurs interest. Interest is the cost of using spending cash money to buy a good or a service in the current time period instead of saving and purchasing it at a later period. Credit providers tend to charge extremely high interest for the convenience of flexible purchasing power. These interest charges, accumulated over time, become a source of insolvency for the debtors who are unable to repay the interest, the principal amount or both.

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_____ exists because people's wants for goods and services are greater than the number of products that can be made from availab

seropon [69]

Scarcity exists because people's wants for goods and services are greater than the number of products that can be made from available resources

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3 years ago

Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 116,000 units of a patented electronic

balu736 [363]

Answer:

a. $3.13 per unit

b. No

c Yes

Explanation:

The computation is shown below

a. Fixed overhead per unit is

= Fixed overhead ÷ Number of units manufactured

= $363,000 ÷ 116,000 units

= $3.13 per unit

b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost

c. Now the acceptance of the offer should be based on total relevant cost which is

Total relevant cost

= $6.1 + $6.1 + $8.1

= $20.3

Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50

3 0

3 years ago

A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 3 years at a call pr

AVprozaik [17]

The Yield to call is 7.30%

Par value of Bond (FV) = $1,000

Annual Coupon (A) = 8%*1,000 = $80

Years until maturity = 8

Current YTM = 7.5%

We need to calculate the Current Price of Bond (PV)

PV = 80 * (P/A, 0.075, 7) + 1000 * (P/F, 0.075, 7)

PV = $1,026.48

Call Price = $1,010

Call Period = 3 years

Yield to call = ytc

1026.48 = 80* (P/A, ytc, 3) + 1010 * (P/F, ytc, 3)

Using the trail and error method,

Yield to call = 7.30%

In conclusion, the Yield to call is 7.30%

Read more about Yield to call

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2 years ago

On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bou

MA_775_DIABLO [31]

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

8 0

3 years ago

To compete with Lexus, a successful luxury brand of Toyota, Nissan launches Infinity as its own luxury brand to seek the benefit

slava [35]

Answer:

(D). Straddling

Explanation:

Straddling positioning involves placing a product or brand in two segments at the same time such that it is possible to reap benefits from both segments.

By launching its luxury brand (Infinity), while remaining in other market segments, Nissan is practicing straddling positioning.

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3 years ago