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OverLord2011 [107]
3 years ago
11

The use of debt is called A. financial leverage. B. production leverage. C. operating leverage. D. total asset turnover risk. E.

business risk. Reset Selection
Business
2 answers:
IRISSAK [1]3 years ago
8 0

Answer:

A- Financial leverage

Explanation:

The use of debt is called FINANCIAL LEVERAGE because it involve the use of debt or borrowed money rather than equity when an asset is purchased with the hope that the profit gain after deducting tax from the equity holder transaction will be higher than the borrowing cost.

Financial leverage is based on the used of borrowed money or debt to acquire an additional assets which will cause the returns on the owner's cash investment to be amplified.

The return on equity is increased through leverage leading to the excess amount of the financial leverage to increases the risk of failure, since it will becomes more difficult to repay back the debt or borrowed money.

Financial leverage is measured as the ratio of total debt to total assets meaning the greater the amount of debt , the greater the financial leverage.

Ksenya-84 [330]3 years ago
4 0

Answer:

A. financial leverage.

Explanation:

Financial leverage refers to the use of debt in order to buy more assets. This is measured by comparing the ratio of total debt to total assets. This means that, as the proportion of debt to assets increases, so does the amount of financial leverage. As a very large amount of debt can be hard to pay, an excessive amount of financial leverage can greatly increase the risk of failure.

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Why did Tonya's lender most likely deny her credit?
vagabundo [1.1K]

Creditors will decline your request for credit if they see that your income is insufficient to cover your debts.

Lenders will be reluctant to approve a loan if you have a bankruptcy on your credit report since it increases the risk involved.

Thus, Option B is correct.

<h3>Who makes the decision about your credit application?</h3>

Your information is provided to the credit reporting bureau, but the lender ultimately decides whether or not to extend credit.

The best course of action is typically to speak with the lender directly if you require more details especially regarding your denial.

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3 0
2 years ago
Suppose that the price of a bottle of vitamins is $1.73 and that at that price the total quantity demanded by consumers is 75,00
Maru [420]

more firms will be opened than before cause there are more people in the world to buy them

7 0
3 years ago
If 10,000 units which were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 w
kakasveta [241]

Answer:

False

Total equivalent units    89,000 units

Explanation:

<em>Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows:  </em>

Equivalent units = Degree of work done(%) × units of inventory

Item                                          unit                                    Equivalent unit

Opening inventory            10,000    50% ×  10,000                 5000

Fully worked unit                  80,000     100%× 80,000              80,000

Closing inventory              20,000       20% × 20,000              <u>4,000</u>

Total equivalent units                                                              <u> 89,000</u>

<u />

<u>Notes:</u>

<em>1. Fully work represent units started and completed in the same period. They exclude the opening inventory.</em>

<em>Fully worked = 90000- 10,000 =80,000.</em>

<em>2. Note also at that the degree of completion</em> for opening inventory is the simply the balance of work remaining to be done.

<em>For example, for materials, 50% of work has been done on the opening inventory in the last period, hence the balance of 50% would be done this period </em>

6 0
3 years ago
Marisol recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the ho
lukranit [14]

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use price skimming

<h3>What is price skimming?</h3>

Price skimming is a pricing strategy that a company can use when launching a new product or service.

Price skimming is commonly used for new technologies. DVD players are an excellent example of this. When DVD players first became available in the late 1990s, they could cost up to $1,000. If you do a quick search on Amazon, you'll find that a new DVD player costs only $33.

The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. When a product is new to the market, skimming is commonly used (in its introduction or growth phase)

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3 0
1 year ago
Creditors often include several requirements in a mortgage contract in order to protect their interests. In order to ensure that
muminat

Answer:

prepayment penalty, maintain, insurance, mortgage

Explanation:

Prepayment penalty clause relates to the situation that the borrower shall not prepay the borrowed amount as to the creditor it will be loss in the form of interest, thus, it do not want that the borrower shall collect from any other source.

The property should not loose its value, or the value shall not be degraded as that will result in loss, as when the borrower fails to repay the loan, creditor has the right to sell it, if it will not be maintained the value will degrade.

Insurance is required so that same as in above mentioned point that the value is not lost, and then the value of loan is fully recoverable.

If the value of loan exceeds 80% of value of property there shall be mortgage as the lender ensures his payment and no failure shall be there.

5 0
3 years ago
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