All categories

3 years ago

Which of the following behaviors are more likely to happen in a GOOD economy?

Business

1 answer:

harkovskaia [24]3 years ago

3 0

Answer:

A. Jordan takes out a loan to start a new business.

Explanation:

A good economy is one in which individuals and businesses are thriving in general sales and profit, lower rates of unemployment, low poverty rate and higher Gross Domestic Products (GDP).

Jordan taking out a loan to start a new business is a pointer to the fact that, there is an enabling environment for business with low interest rate.

You might be interested in

Suppose First National Bank holds $100 million in assets with an average duration of 3 years, and it holds $90 million in lia

Nitella [24]

Answer:

% change decrease is = 1.2 %

Explanation:

given data

assets = $100 million

average duration = 3 years

liabilities = $90 million

average duration = 3 years

interest rates= 4% increase

to find out

percentage decrease in First National Bank's net worth relative to the total original asset value

solution

change in assets value is

change in assets value = $100 million × 4% × 3 year = $1200 million

change in liability value is

change in assets value = $90 million × 4% × 3 year = $1080 million

change in net worth = $1200 - $1080 = $120 million

so % change is = $\frac{120}{100}$

% change decrease is = 1.2 %

3 0

3 years ago

What was the result in the Lucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding th

iogann1982 [59]

Answer:

The Supreme Court ruled in favour of the Complainants, enforcing the contract.

Explanation:

The Lucy Vs Zehmer case was one of decision on if a contract was binding or not on the basis of the undisclosed intentions of the parties involved in the contract. Zehmer alleged that he had jokingly sold and transferred title to Lucy while drunk. However the court ruled that contract for the sale of land to Lucy was valid on the basis that the secret intentions of Zehmer was not known or disclosed in the sale of the land and only his actions count for the contract to be binding.

5 0

2 years ago

Many farmers practice "crop rotation" by planting a field with corn one year and soybeans the next. why might they do this?

lisabon 2012 [21]

The reason that they do this because rotating crops has the capability of keeping the nitrogen from being depleted in the soil as nitrogen fixing bacteria are likely to be found in the nodules of the roots of the soybeans and not on the corn’s roots that makes soybeans the next after the corn is planted first.

8 0

3 years ago

Jbx automobiles, a global firm, builds factories to serve more than one country and lower the mne's production costs. jbx automo

vaieri [72.5K]

The answer to the question mentioned above is the "ECONOMIES OF SCALE". JBS automobiles, a global firm builds factories to serve more than one country and lower the MNE's production costs. JBX automobiles most likely benefit from "Economies of Scale".

3 0

3 years ago

44000 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a consta

Minchanka [31]

Answer:

Maximum Dollar Increase = $10079.76

Explanation:

(See attachment for full question)

INCOME STATEMENT

Sales ---------- $67,000

Costs ---------- $43,800

EBIT ------------ $23,200

Taxes (34%) ----$7,888

Net income ------$15,312

BALANCE SHEET

Current Assets ------$31,000

Fixed Assets --------- $118,000

Total ------------------- $149,000

Long-term Debt -----$68,000

Equity ------------------- $81,000

Total ----------------- $149,000

Dividend Payout Ratio = 30%

Plowback Ratio is calculated by: 1 - Dividend Payout Ratio

Plowback Ratio = 1 - 30%

Plowback Ratio = 1 - 30/100

Plowback Ratio = 1 - 0.3

Plowback Ratio = 0.7

Plowback Ratio = 70/100

Plowback Ratio = 70%

Return on Equity (ROE) is calculated by: Net Income/Total Equity

Net Income = $15,132

Total Equity = $81,000

ROE = $15,132/$81,000

ROE = 0.186815

ROE = 18.68%

Calculating Sustainable Growth Rate (SGR)

SGR = (ROE * Plowback Ratio)/(1 - ROE * Plowback)

SGR = (0.186815 * 0.7)/( 1 - 0.186815 * 0.7)

SGR = (0.1307705)(1-0.1307705)

SGR = 0.1307705/0.8692295

SGR = 0.150444157728194

SGR = 0.1504

Max increase = (Sales * SGR)= ($67,000 * 0.1504)

Max Increase = $10079.75856778905

Max Increase = $10079.76

7 0

3 years ago