Option A. Jessie has the idea for a new phone app so he spend his money to set up a business
Answer: The answer is: "Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected." I took the test. I hope this helps!
Answer:
(C) will probably have to accept a higher level of risk
Explanation:
Investing usually involve a trade-off between risk and return. Thus, relative to the guaranteed 3% rate of return offered by his bank, he will need to accept a higher level of risk to earn a higher return on his money.
Option A is incorrect because investing overseas may not earn a higher return, especially if the investment is in an oversea sovereign asset. Option B is incorrect because investing in a business with a very stable and predictable rate of return will likely yield a lower or similar rate of return as the bank savings account due to its low level of risk. Option D is incorrect as engaging in illegal activities does not necessarily guarantee a higher rate of return on a consistent basis.
Answer:
The loan officer takes the following steps (not necessarily in this order) to assess the creditworthiness of the borrower:
- Run a credit report using any of the major credit reporting agencies like TransUnion, Experian or Equifax.
- Obtain accounts receivable aging reports.
- Check references.
- Conduct a gut check using creative investigative methods.
Explanation:
There are some factors that can affect creditworthiness or credit score such as: bill payment history, which comprises 35 percent of the total credit score and the most important factor in calculating credit scores, the level of debt, credit history age, types of credit on a report and number of credit inquiries, credit utilization, length of credit history. There are five “C's” to consider during a credit risk assessment: character, capacity, capital, condition, and collateral. Whether a sale is a domestic or international transaction.
The main factor lenders consider in determining a person's creditworthiness is investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts, capacity to pay, character, and any collateral you may have for loan guaranteed only by a promise to repay.
Answer:
The answer is: False
Explanation:
If Bayou Belle Water had high resource similarity with companies like Coca Cola, it would mean that its resources, both tangible and intangible, are similar between them. Obviously a small business doesn't have either the financial resources or the intangible resources (the secret Coke formula) that corporate behemoths have.
