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3 years ago

Subprime lending means lending to borrowers and charging interest that is below the current prime interest rate.

Business

1 answer:

STALIN [3.7K]3 years ago

8 0

Answer:

False

Explanation:

Subprime lending means lending to borrowers and charging interest that is above the current prime interest rate.

The current prime interest refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.

The sub-prime lending refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.

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Successful new-product development requires the company to establish an effective organization for managing the development proc

Rama09 [41]

Answer:

a. True

Explanation:

The success of a new product development needs to establish effective organization for the management of the development process. Organizations should choose product managers, departments for new products, they should incorporate venture teams, and many more. Some of the important factors are companies should adopt multi functional teams and develop new multiple concepts for the products.

4 0

3 years ago

A company purchased inventory for $ 72,000 from a vendor on account, FOB shipping point, with terms of 33/10, n/30. The comp

Cerrena [4.2K]

Answer:

$71,340

Explanation:

The computation of the cost of inventory is shown below:

= Purchase value of inventory - discount charges + freight charges

where,

Purchase value of an inventory = $72,000

Discount charges = $72,000 × 3% = $2,160

Freight charges = $1,500

So, the cost of inventory is

= $72,000 - $2,160 + $1,500

= $71,340

The discount terms is 3% if payment is made within 10 days and total time of payment is 30 days instead of 33%

4 0

3 years ago

"Which type of accounts" the ____ on an investment is the investors gain or loss on the investment over a period of time.

miss Akunina [59]

The rate of return on an investment is the investors gain or loss on the investment over a period of time.

4 0

3 years ago

Read 2 more answers

Please choose one of following answers that are in quote

bezimeni [28]

Answer:

it would be better to go the his parents house so it would be cheaper, probably around $10

Explanation:

5 0

3 years ago

A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widget

polet [3.4K]

Answer:

A Widgets Firm

Minimization of Shipping Costs to 3 Customers from 4 Locations:

Explanation:

a) Data and Calculations:

Shipping Costs per unit Plant Customer

c. $7125

Plants Customers

Production 1 2 3 Total

Demand units 75 units 100 units 175 units 350 units

A 100 units $25 $35 $15

B 100 units $20 $30 $40

C 100 units $40 $35 $20

D 50 units $15 $20 $25

To minimize shipping costs:

Satisfy Customer 1's 75 units from B = $20 x 75 = $1,500

Satisfy Customer 2's 25 units from B = $30 x 25 = 750

Satisfy Customer 2's 25 units from C = $35 x 25 = 875

Satisfy Customer 2's 50 units from D = $20 x 50 = 1,000

Satisfy Customer 3's 100 units from A = $15 x 100 = 1,500

Satisfy Customer 3's 75 units from C = $20 x 75 = 1,500

Daily minimum shipping cost = $7,125

Minimizing the shipping cost to a location is not considered in isolation. The other locations must be considered. For example, customer 1's shipping cost would have been minimized to $1,250 instead of $1,500 by shipping D's 50 units and B's 25 units. But, this would have increased the shipping cost to customer 2 by $500 from $2,625 to $3,125. Whereas, the company lost $250 shipping to customer 1, it gained $500 shipping to customer 2, thereby making a net gain of $250, instead of net loss of $250.

7 0

3 years ago