Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
Answer: C. 150-250 basis points
Explanation:
Banks now charge between 150 to 250 basis points above the London Interbank Official Rate (LIBOR). This means that they charge a premium of between 1.5% to 2.5% over LIBOR for construction projects.
Like earlier mentioned, risks of construction lending may be less in a number of respects than those associated with land acquisition but however there are still risks. Risks such as low Tenancy when built, the potential Environmental problems and location.
This is why it is necessary to charge such a premium which is actually a very competitive rate amongst Banks.
If you need any clarification do comment.
Answer:
The ending debit balance in the Cash account is $25,000
Explanation:
The amount of cash Travis received in the month=Cash sales for the month=$12,000
The amount of cash Travis paid in the month = Cash paid for current-period purchases + Cash paid for amounts due from last month = $5,000 + $6,000 = $11,000
The ending Cash account balance = The beginning cash balance + Cash received in the month - Cash paid in the month = $24,000 + $12,000 - $11,000 = $25,000
The ending debit balance in the Cash account is $25,000
Answer:
Dr cash $3783
Dr factoring fee expense $177
Cr accounts receivable $3900
Explanation:
The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.
Cash proceeds=$3900*97%=$ 3,783.00
Factoring fees expense=$3,900.00-$3,783.00=$117
Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900