Answer:
Dr bond investment $1,400,000
Cr cash $1,400,000
Cash interest is $112,000.00
Interest revenue for the year is also $ 112,000.00
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00
Answer:
relational switching cost
Explanation:
Switching costs are those related to expenses that a customer assumes when switching from a product or service provider, are expenses related to effort, money, time among others.
Costs are often low in a fragmented market and low and high in a consolidated market with few substitute products.
There are three types of switching costs:
- procedure,
- financial,
- relational.
Relational switching cost is one that is not quantifiable, but concerns consumer resistance and discomfort in adapting to change from a new supplier.
I need the boxes in order to help.
Entrepreneurs and other producers accept risks because they hope to earn PROFIT.
Every businesses are set up for the purpose of earning profits. Every venture has its accompanying risks of failure but if everything goes right, then the pay-off will be worth it.
High risks business also have high potential of generating high profit.
