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Rom4ik [11]
3 years ago
6

Habib withdrew $100,000 from his bank account paying 5% interest to purchase equipment for his construction company. If Habib ea

rns an accounting profit of $10,000 and he has no other opportunity costs, his economic profit will be equal to
Business
1 answer:
daser333 [38]3 years ago
6 0

Answer:

$5,000

Explanation:

Given that,

Accounting profit = $10,000

Interest rate = 5%

Amount withdraw = $100,000

The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.

Accounting profit is determined by subtracting explicit costs from the total revenue.

Accounting profit = Total revenue - Explicit costs

Economic profit:

= (Total revenue - Explicit costs) - Implicit costs

= $10,000 - (Interest income)

= $10,000 - (5% × $100,000)

= $10,000 - $5,000

= $5,000

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If you hold a $100 U.S. Treasury Bill, this means: (Select all that apply) Helpful Hint: There are 2 correct answers. The U.S. g
egoroff_w [7]

The U.S. government owes you $100.

Option 1 is correct .

Treasury Bills:

Treasury bills, or T-bills, have the shortest terms of all and are issued with maturity dates of four, eight, 13, 26, and 52 weeks.

Treasury Bill Characteristics:

Unlike Treasury bonds and notes, T-bills do not pay periodic interest payments to investors. Instead, Treasury bills are auctioned off to investors at a discount to their face value. The investor's return is the difference between the face value and the discount price paid at purchase.

How Do You Cash a Treasury Bond?

For Treasury bonds held with a bank or broker, consult the institution to redeem them.

For Treasury bonds in Treasury Direct (electronically), investors don't need to take any action since the bond will be cashed out at maturity and deposited into your account as long as you supply your bank information to Treasury Direct.

Treasury Bonds :

Treasury bonds, called T-bonds for short, are often referred to as long bonds because they take the longest to mature of the government-issued securities. Treasury bonds are offered to investors in terms of 20 and 30 years to maturity.

Learn more about Treasury bills :

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7 0
1 year ago
During the business model design process the entrepreneur should spend zero time focusing on the uncertainties and external risk
ad-work [718]

Answer:

The correct answer is false

Explanation:

The business model design process  consists of five phases; mobilize, understand, design, implement, and manage.

7 0
3 years ago
The primary source of information to be reported about litigation, claims, and assessments is the:_________
cluponka [151]

Answer:

Client's management

Explanation:

Client's management in business can be explained as the act of maintaining the positive relationship between the client and the company in order to have a productive interaction so that the company can deliver the quality of service required by the client and for lasting relationship between them.

This is important in business to keep your client from getting their service/ product elsewhere. It should be noted that the primary source of information to be reported about litigation, claims, and assessments is the Client's management

8 0
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Which of these is an example of a trade restriction?
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Answer:

A tariff on imported cars

Explanation:

5 0
3 years ago
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