1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ExtremeBDS [4]
3 years ago
6

Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: A

friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds. Determine which of these fundamental factors is affecting the cost of money in the scenario described:a.Inflation b.Risk c.Time preferences for consumption
Business
1 answer:
Rama09 [41]3 years ago
5 0

Answer:

The correct answer is letter "C": Time preferences for consumption.

Explanation:

American economists Irving Fisher (1867-1947) proposed the Time Preferences for Consumption theory that contrasts saving money to spending it today. According to the theory, people will weight the return of spending or saving money based on their expectations. It means, how much the goods an individual can purchase today are worth versus the return of the savings in the future.

Thus, in the case, <em>there is an evaluation of investing in Treasury Bonds versus investing today in a friend's business. The time preferences for consumption is applied when the individual compares the expected return of the Treasury bonds with what investing today could provide.</em>

You might be interested in
Marco works in the marketing department of a luxury fashion brand. He is making a presentation on the success of a recent market
mr Goodwill [35]

The best answer for this question is: Marco can use the images option to include photographs and the video option to include footage of the fashion show.

These options would be the best for him in including the media that he wants to present in his Microsoft PowerPoint presentation. This is because he wants to show his audience his recent successful marketing campaign, which would be more effectively illustrated through the actual footage.

7 0
3 years ago
Which is the best answer
Ipatiy [6.2K]
The answer would be between A and D.
3 0
3 years ago
Company purchased $60,000 of Stanton Company’s 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its
ASHA 777 [7]

Answer:

d. $51,500

Explanation:

Proceed from sale of the bonds

face value x quote

50,000 x 103/100 = 51,500

The company will recognize a gain from the sale of 1,500 dollars as it sold  the investment for 51,500 while it was valued at 50,000 in their books

5 0
3 years ago
darby writes a check to education loan management inc, that is drawn on darbys account at federal bank. if thr bank does not acc
Aleksandr-060686 [28]
<span>Liability is on Darby because they were the one to write the original check and give it to the education loan management inc. Since the check wasn't accepted they have to take responsibility and liability for the fact that it was not accepted.</span>
5 0
3 years ago
why might a company decide to outsource (i.e., buy) a product that they currently make in their company-owned operations?
mestny [16]

Companies outsource to save costs or improve the value of their goods. There are several options when deciding whether to outsource a business' operations or production.

The use of outsourcing has increased as a way for businesses to cut expenses and concentrate on what they do best. A business precise known as outsourcing involves a corporation hiring a third party to carry out duties, manage operations, or offer services on their behalf.

Reduce and manage operating expenses. Enhance the company's focus. liberate internal resources for fresh endeavors. Increase output for some time-consuming tasks for which the organization may lack the resources.

The finest examples of outsourcing include website creation, office and warehouse cleaning, and advertising.

To learn more about outsourcing

brainly.com/question/14202035

#SPJ4

3 0
1 year ago
Other questions:
  • Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fa
    6·1 answer
  • On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent
    9·1 answer
  • An economy is operating with output $400 billion below its natural level, and fiscal policymakers want to close this recessionar
    7·1 answer
  • On February IN , Marshak's investment account has a balance Of $19,800. He deposited ,200 on April I and $2,600 on May l . He wi
    10·1 answer
  • Speculative investments are high-risk investments with the possibility of high returns in a short period of time.
    15·2 answers
  • ABC Corporation has noticed the following transactions havent been account for in its income statement for the year ended Decemb
    10·1 answer
  • Calculate how many hours his non-salary employees will take to create a large order of 1,000 shoes. What kind of budget would Jo
    7·1 answer
  • Jamie has been renting a ranch in Montana for years, but is ready for a change of scenery. She doesn't want to terminate her con
    14·1 answer
  • Sarah started working this year. She is single with no children and hasn't earned much money. Money has been taken out of each p
    11·1 answer
  • The present value of $100 paid annually at year end for 20 years at 10% per year is:________.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!