Answer:
Correct option is C $6700
Explanation:
It is calculated that the net cash balance is $3,300. But, the minimum cash balance should be $10,000. The difference amount should be borrowed. Thus, $3,300 is deducted from $10,000. The amount to be borrowed by the company is $6,700.
Answer:
James will lose money, since his earnings will be lower than the interest that he must pay.
Explanation:
The capitalization (cap) rate is a ratio calculated by dividing the net operating income over the property asset value.
For example, if James is purchasing the property at $100,000, his net earning will be $7,500 per year (cap rate of 7.5%), but he will have to $8,000 in interests for the property. The interests are higher than the earnings, therefore the leverage is negative.
Answer:
The correct answer is letter "D": Departments determine their needs and relate them to the overall goals.
Explanation:
The bottom-up budgeting approach consists in giving each department within a firm the power of setting and controlling their budget according to the projects the department intends to develop that matches with the ultimate goal of the organization as a whole. It might be beneficial because each department is likely to come up with a budget that adjusts better to their needs but it could represent a headache for the company when it comes to racking each expense for each area.
Answer:
The correct answer is regarding the model, is that an individual firms prices are flexible but the level of the price is fixed.
Explanation:
The aggregate expenditure model is the model in which the sum or total of all the expenditures are undertaken in the economy with the factors during the particular time period.
The equation is:
AE = C (Consumption) + I (Investment) + G (Government) + NX (Net Exports)
In this model, it is assumed that the prices of the individual firm are flexible whereas the price level is fixed.