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givi [52]
3 years ago
6

What factors affect the time value of money and the cost of borrowing money?

Business
1 answer:
sergejj [24]3 years ago
5 0
1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing 



2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.



3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.
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Why would those reviewing a business plan want to know the life cycle of a product?
emmainna [20.7K]
A business plan composes of many key components and one of this is the products and services. Therefore, when reviewing a business plan, the life cycle of the product is important because it would help establish expectations regarding how often the customer will need the business. The answer to this would be option D. Hope this helps.
3 0
3 years ago
Read 2 more answers
The May transactions of Hanschu Corporation were as follows.
romanna [79]

Answer and Explanation:

The journal entries are as follows:

On May 4

Account  payable $600

        To cash $600

(Being cash paid is recorded)

On May 7

Account  receivable $6,500  

       To service revenue $6,500

(being service on account is recorded)

On May 8

Supplies $800  

       To Account payable $800

(being supplies purchased on account)

On May 9

Equipment $1,000  

        To cash $1,000

(being cash paid)

On May 17

Salary expense $500

         To cash $500

(being cash paid)

On May 22

Repair expense $800  

        To Account payable $800

(Being received bill for repairing of an equipment is recorded)

On May 27

Prepaid rent $1,100

         To cash  $1,100

(Being cash paid is recorded)

5 0
2 years ago
Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under
miv72 [106K]

Answer:

Explanation:

The journal entry is shown below:

Petty cash A/c $200

            To Cash A/c $200

(Being the petty cash fund is established)

Simply we debited the petty cash account and credited the cash account so that the correct posting can be done with the correct item and the correct value.

All other information which is given is not relevant. Hence, ignored it

4 0
3 years ago
The primary goal of financial management is to: a. maximize current dividends per share of the existing stock.b. maximize the cu
tangare [24]

Answer:

The correct answer is letter "B": maximize the current value per share of the existing stock.

Explanation:

Financial management collects several strategies to add value to the company in the long-term. This could be achieved by generating revenue sustainably and increasing the value per share of the firm's stock which boosts the value of the overall entity in the market.

<em>One of the most important goals financial management has is to maximize the stakeholders' wealth.</em>

6 0
3 years ago
What tax event must take place when a taxpayer receives a Form 1099-A?
Ad libitum [116K]
Gain or loss from the sale of property must be calculated. The loss from foreclosure of property must be subtracted from wage income.
8 0
2 years ago
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