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maxonik [38]
3 years ago
10

Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happe

ns to the loan?
Business
2 answers:
laila [671]3 years ago
7 0

Answer:

A - Mike must pay the full monthly payment

Explanation:

iren [92.7K]3 years ago
4 0
<span>I this case, the loan is still valid and at that point Mike would be responsible for finding a way to pay the loan back as agreed upon in the contract. This is called co-signing, when two parties both sign for a loan together. Both parties are responsible for the loan and even though David cannot be found, the loan must still be paid and Mike would be held responsible for this.</span>
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(Life-Cycle Hypothesis) According to the life-cycle hypothesis, what is the typical pattern of saving and spending for an indivi
hammer [34]

Answer & Explanation:

Modiglani's Life cycle Hypothesis depicts spending & consumption pattern of people, in order to stabilise / or smoothen their consumprtion. The theory has following phases :

  • Early (Non Working) Age, Low Income stage : Borrowings are done, to cover up for lack of income that yields desirable stable consumption level.
  • Youth, Earning (Working) Age : Savings are done, through surplus of income level over desirable stable consumption level.
  • Old, Post retirement (Non working age) : Dissavings are done, funds from previous savings are used to cover for lack of income that yields desirable stable consumption level.

Implication rate for entire economy saving rate : It implies that economy's savings rate is high, if more population comprises of middle aged working population.

7 0
3 years ago
When building a team, which profession is most similar to that of the team leader
Shkiper50 [21]
D is the correct answer
3 0
3 years ago
Read 2 more answers
Because people prepare budgets, budget figures are often biased. Which of the following is true? a. When senior management sets
eduard

Answer: B

Explanation:

Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.

4 0
3 years ago
​matthew's fish fry has a monthly target operating income of​ $7,200. variable expenses are​ 60% of sales and monthly fixed expe
slamgirl [31]

Given, Operating income = 7,200

Fixed expenses = 1800

Let the target sales be assumed to be X

Sales = 7200 + 1800 + 0.6*Sales

X = 7200 +1800 +0.6X

X-0.6X = 9000

0.4X =9000

X = 22,500

Target Sales = 22,500

Break even point = Fixed Costs/(Price -Variable cost)

Break even point = 1,800/(1-0.6) = 1,800/0.4 = 4,500

Break even point =4,500

Margin of Safety = (Target sales - break even point)/ Target Sales

Margin of Safety = (22,500-4,500)/22,500 = 18,000/22,500 = 0.8 = 80%

Margin of Safety =80%

7 0
3 years ago
Read 2 more answers
Charter Company, which uses the perpetual inventory method, purchases different letters for resale. Character had a beginning in
Gnesinka [82]

Answer:

Cost of Goods sold is $29

Explanation:

Under the perpetual LIFO or Last In First Out method of inventory valuation, we value the Cost of Goods Sold based on the price of the most recently purchased inventory before sale. Thus the units of closing inventory contains the inventory that was purchased first.

The cost of goods sold under LIFO will be,

Beginning Inventory (9* 3)   = 27

Feb purchases (4 * 5)           = 20

Oct sales (4 * 5 + 3 * 3)         = (29)

Dec purchases (5 * 6)           = 30

Ending Inventory                  = 48

So, the cost of goods sold under perpetual LIFO will comprise of the most recently purchased inventory before sale. The most recently purchased inventory before October sale was of February purchases. Thus, out of the 7 units sold, 4 will comprise of the February purchases and the remaining, 3 units, will be from the beginning inventory.

The cost of goods sold is,

COGS = 4 * 5 + 3 * 3

COGS = 29

8 0
3 years ago
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