The purchase price or appraised value, whichever is lower, is the correct option when considering loan-to-value ratio in mortgage lending
What does an 80% loan-to-value ratio mean?
The loan-to-value ratio means the percentage of the property worth that the borrower could receive as a loan from the financial institution, which means that the remaining percentage after having deducted the loan-to-value ratio from 100% would be financed by the borrower, which serves as a way to avoid default.
Ordinarily, the loan-to-value ratio is applied to the lower of the selling price or the appraised value of the property, but note that a selling price to one party is the purchase price to another, hence, option d is the most correct
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Answer:
$198,000 and $0
Explanation:
The calculation is shown below:
The Cost of the land is
= Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $178,000 + $15,300 + $1,100 + $2,300 + $1,300
= $198,000
As the property is buy for the building site so here no cost will be recognized and allocated to the new building cost
hence, it would be zero
Answer:
The correct answer is c. A firm considers overhead or depreciation costs to make short-run decisions
Explanation:
As Professor Adam Grant suggests, sunk costs have an important effect on our decisions, but there are three factors that influence us even more: anticipated regret ("will I regret it if I don't give the project another chance?"), project completion ("if I continue to invest, I will finish the project successfully") and the threat of ego ("if I do not continue betting on the project, I will seem a failure"
A good option is to prevent these three factors from occurring and constantly ask for feedback from those around us (collaborators, partners, friends). If we ignore the opinions that go against what we think, we will be putting the project at risk without realizing it. On the contrary, those who do not mind "swallowing pride" in the short term will make better decisions in the long term. On the other hand, separating the project from the person, the entrepreneurial venture, will help us not to take the recommendations of our environment personally and to react much more quickly and quickly.
An inside director.
An inside director is someone who sits on the board of directors and is also an employee of the company (some board members are external non-employee advisors).
Answer & Explanation :
Reasons of Bose speakers' & products' goodness
- Excellent Design - Best suitable for major premium 'willing to pay' customers
- Supply - Exceptionally capable suppliers
- Manufacturing - Updated & superior quality technologies, based on intense research & development
High quality products & services outshine in market for following reasons:
- The proportionate higher quality is sold at much higher relative price.
- These goods become 'ostentation' (status symbol) goods, are bought not only for their increased value, but also for prestige.
- Rejection based repair & rework is minimum. This synergises internal processes & increases cost efficiency.
So, high prices & cost efficiency imply - high profitability for such high quality products.
