1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
romanna [79]
3 years ago
9

) Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been op

en for only a year. They both want to expand. When the two owners go to the local bank looking for a loan, which one is likely to get a lower interest rate and why?
Business
1 answer:
CaHeK987 [17]3 years ago
8 0

Answer:

The one that has been operating for the past ten years.

Explanation:

This is so because, the bank will consider it of factors which will include:

1. the stage in the life cycle of the company.

2. the credit risk level of the company.

3. the attractiveness of the company to investors.

4. the going concern assumption of the company.

Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.

However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.

You might be interested in
Which of the following would help reduce the amount of frictional unemployment? Choose one or more: A. Websites that advertise j
Natali [406]

Answer:E. Websites that advertise job openings across the country

Explanation:

Frictional unemployment is a natural kind of unemployment when people are out of jobs temporally maybe because they left their unfulfilling jobs or their residential area has changed after they got married .

Some will leave their jobs because they are no longer happy and they have saved enough to survive whilst still searching for the jobs.

Some will leave because they have to take care of their loved ones until those relatives get better and they can return to the working industry.

These people can make use of the website to search for their next job.

3 0
3 years ago
Make a case that development economics might be merely a combination of all the other subfields of economics, only applied to lo
Alina [70]

Answer:

Case explained below

Explanation:

Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, either through health, education and workplace conditions, whether through public or private channels.

Development economics must encompass the study of institutional, political, and social as well as economic mechanisms for modernizing an economy while eliminating absolute poverty and transforming states of mind as well as physical condition.

7 0
3 years ago
On January 15, Walton Company sold merchandise on account for $3,000 with terms 3/10, n/30. On January 20, the customer returns
Margaret [11]

Answer:

The amount received in cash is $2,328

Explanation:

The amount which is received in cash is computed as:

On January 20, the amount of $600 goods returns from customer, so the remaining balance is

= $3,000 - $600

= $2,400

On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is January 25. So,

= $2,400 x  (100% - 3%)

= $ 2,400 x  97%

= $ 2,328

7 0
3 years ago
When​ materials, information, and services gain value as they move from the​ raw-materials supplier to the end​ customer, they a
Gennadij [26K]

Answer:

When​ materials, information, and services gain value as they move from the​ raw-materials supplier to the end​ customer, they are said to be moving through​ ________.

A.  the supply chain

B.  a​ value-added analysis

C.  business process re-engineering

D.  Total Quality Management​ (TQM)

E.  ​just-in-time production

Answer: A

Explanation:

A supply chain is a system between an organization and its providers to create and appropriate a particular item to the last purchaser. This system incorporates various exercises, individuals, elements, data, and assets. The supply chain additionally speaks to the means it takes to get the item or administration from its unique state to the client. Organizations create supply chains so they can diminish their expenses and stay serious in the business scene. Supply chain the board is a pivotal procedure on the grounds that an enhanced supply chain brings about lower costs and a quicker creation cycle. A supply chain includes a progression of steps required to get an item or administration to the client. The means incorporate moving and changing crude materials into completed items, shipping those items, and conveying them to the end-client. The substances associated with the supply chain incorporate makers, merchants, stockrooms, transportation organizations, appropriation focuses, and retailers.

8 0
3 years ago
The town of Harmonia gives away all 500 tickets to its annual​ Founder's Day Free ConcertminusinminustheminusPark to local resid
Novosadov [1.4K]
sold 500 tickets therefore it is not economically efficient
4 0
3 years ago
Other questions:
  • During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the compan
    6·1 answer
  • 6. In 1883, ____________ divided the nation into the four time zones still used today. a. the major railroad companies b. the fe
    12·1 answer
  • Jc manufacturing purchased inventory for $5,300 and paid a $260 freight bill. jc manufacturing returned 45% of the goods to the
    7·1 answer
  • Suppose that in slovakia one unit of labor can produce either 16 tons of wheat or 32 tons of soy and in poland one unit of labor
    9·1 answer
  • 1.Choose one option that defines Pathos:
    10·1 answer
  • f a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at
    13·1 answer
  • Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
    13·1 answer
  • A company had a budgeted production of 12000 units and actual production of 13200 units. Two types of raw material, P and Q are
    5·1 answer
  • HELP PLEASE
    13·1 answer
  • Ensuring land is put to the use for which it is best suited while also protecting livability of a community and property values
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!