Answer:
The simple rate of return is 37.5%
Explanation:
Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:
<u>Total annual return - Depreciation expense</u>
Initial capital outlay
For farmer Joe, the simple rate of return is:
<u>$20,000 + $25,000 + $30,0000 -$0</u> x 100
$200,000
= <u>$75,000</u> x 100
$200,000
= 37.5%
Depreciation expense is assumed to be zero.
Options:
A. Debit card
B. Loyalty card
C. Fleet card
D. Credit card
Answer: D. Credit card
Explanation: A credit card is an electronic payment system which uses cards that are linked to a bank account, this card allows you to make purchases online in order to pay later.
A credit card allows its holders to borrow money from financial institutions with the aim of not exceeding the Financial limits. Financial limits are determined by the issuers of the card based on a person's credit history and amount of minimum savings which are expected.
Answer: Option (b) is correct.
Explanation:
Correct Option: Licenses
In United States, there is a licensing system which prohibits the number of taxicabs allowed. So, there are less number of taxicabs companies operates in most of the united states cities.
There is a advantage for the taxicabs companies for using the monopoly power.
Whereas, some of the cities of U.S use 'taxi medallions" as the permits for picking up the passengers.
Franchising is the practice of paying a company to use its name, resources and operation systems.
Answer:
National savings are repaid domestically, whereas capital inflows are repaid to a foreigner.
Explanation:
National savings refer to the portion of the income that is not consumed, or spent by government. It is the combined or aggregate value of all private savings and the budget balance. Therefore, national savings are repaid domestically when borrowed.
Capital inflow refers to the net amount of funds that is moved into a particular benefiting company from another country. It is usually in form of investments by foreigners and it is meant to be paid back to them.
