Answer:
the correct answer is *not spending all their current incomes.
Explanation:
if you look at all the other options, they are not creating wealth but depletes it away. the only way to build wealth is by investing and saving over time. ideally, by not spending all their current income.
Answer:
Debt to income ratio is all your debt payments divided by all the money you earn during a month. Generally you are considered to be in good financial shape when your debt to income ratio is less than 20%, if it's less than 10% it is even better.
Kim's gross income = $1,230 - $165 (taxes) = $1,065
Kim's total debt payments without new debt = $134 (credit card payments)
Kim's total debt payments including new debt = $134 + $172 (new debt) = $306
Kim's debt to income ration without new debt = $134 / $1,065 = 12.58%
Kim's debt to income ration with new debt = $306 / $1,065 = 28.73%
Currently Kim's debt to income ratio is only 12.58% which is very good, but if she takes the new loan then her ratio will increase to 28.73% which is extremely high and not prudent.
Answer: Restructuring cost
Explanation:
Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.
Savings account is the answer