<span>Francine would be considered an entrepreneur because she is someone who initiates and assumes the financial risk of a new business enterprise.
</span>An entrepreneur is defined as someone who owns and operates a business or businesses and takes on a greater than normal financial risk to do that. An entrepreneur starts their own business and puts everything they have into making it successful, no matter the risk, they tend to take it to become successful.<span>
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Answer:
Non-forfeiture option
Explanation:
Insurance is usually taken to guard against uncertainty of an event in the future. For example if a fire breaks out in an office, insurance can be used to regain an agreed portion of the office value from the insurance company.
It is a way of guarding against risk.
Non-forfeiture option is used to prevent unintentional coverage payment lapse.
This is done with the use of automatic premium loan and grace periods in case of default.
Answer:
6,704 units
Explanation:
The computation of the number of units sold is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $90 per unit - $36 per unit
= $54 per unit
So, the number of units sold is
= ($162,000 + $200,000) ÷ ($54 per unit)
= 6,704 units
Your answer would be ( A ) one - sided message
Answer:
Following are the factors in the economy that affects the cost of money:
- Inflation
- Required return of the investors on the additional risk
- Systematic risk in the economy
- Duration of lending
- Credit Spread
Explanation:
If the inflation rate increases then the required return would be compensation for inflation and required return.
The higher is the risk associated with the investment the higher would be the investor's required return.
According to the Capital Asset Pricing Model, the company compensates the investor for the systematic risk, not for the unsystematic risk that he faces because CAPM assumes that the investor has diversified portfolio of investment.
If the amount lend is for greater duration, then there is a risk that the borrower will default payments. There is another explanation which is that there is higher chances of loss of opportunity due to lending amount for greater duration.
Credit Spread is the measure of the risk that the company will be unable to pay interest on loan or principal amount or both. So as we know higher the risk associated with the investment, the higher is the Required return demanded by the investors.
