Debentures are bonds that are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.
Are debentures backed by assets?
Because the issuer anticipates paying back the loans with money from the sale of the business initiative they helped fund, debentures are also known as revenue bonds. Debentures are not backed by tangible property or collateral. They have the issuer's full faith and credit as their only guarantee.
What is debenture and its characteristics?
An extended source of funding is provided by the debentures. They are made up of a protracted predetermined maturity phase. The debentures are typically repaid at the conclusion of their 10–20 year maturity period. The business returns the investor's principal investment amount at maturity.
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Stereo speakers, new car, furniture, an expensive watch
One of the disadvantages of dealing with a financial intermediary would be: <span> A financial intermediary shares risks.</span>
Answer:
= $80,273
Explanation:
Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease
= $82,773 -$ 6,000 + $3,000 + $500
=$80,273
Answer: C. inefficiently low; inefficiently high
Explanation:
If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.
However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.