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
Keith_Richards [23]
3 years ago
15

A building owner is evaluating the following alternatives for leasing space in an office building for the next five years:

Business
1 answer:
Leno4ka [110]3 years ago
4 0

Answer:

Explanation:

The lease rent that depends  upon CPI rate and operating expenses has more risk than normal increase in value rent alternatives. Reason being that CPI can be increased or decreased in future and this will affect the builder's cashflow.

Likewise, operating expense is also an increase or decrease because the builder's cashflow can increase or decrease .

The risk level of all the four alternatives is shown below

Net lease with steps- Less risky

Net lease with CPI - Highly risky

Gross lease - Moderately risky

Gross lease with CPI - Highly risky

You might be interested in
Deontologist would agree that the increasing medical concern over obesity in the United States justified federal regulation of h
KonstantinChe [14]

Explanation:

Yes it is true that the advertisements during the children's program are responsible for increasing the craving of children for junk food which contains high calorie, high fat, high sugar and and low nutritional values.

These negative food habits are causing the obesity in the young children in the United States. The USDA has updated its "MyPlate" in 2011 to give information about the right food habits which are good for nutritional value  to the U.S citizens.

 

7 0
3 years ago
Gray Company, a closely held C corporation, incurs a $50,000 loss on a passive activity during the year. The company has active
-Dominant- [34]

Answer:

B) False: since it is still a closely held C corporation, it cannot reduce its ordinary income through passive losses. If it hadn't been a closely held C corporation then it could have made the deductions.

Explanation:

Passive losses are losses resulting from financial activities, i.e. investments in other corporations where the investor doesn't participate in.

Passive losses cannot offset ordinary income, they must be matched against passive gains only. If passive losses exceed passive gains, they can be carried forward without limitation.

The only exception applies to C corporations that are not;

  • closely held corporations or
  • personal service corporations.

Qualifying C corporations can actually deduct passive losses from certain ordinary income.  

Closely held C Corporations are corporations where during the last 6 months, 50% or more of its stock is owned by 5 or fewer investors.

6 0
3 years ago
At December 31 of the current year, Cart Company has a $16,000 Notes Receivable from a customer. Interest of 5% has accrued for
lyudmila [28]

Answer: $23,200 as total current asset for the period

Explanation:

Note Receivable has a value $16,000

Interest on Note = 5%

Accrued for 9 months

Yearly Interest accrued = 16,000*5%*12= 9,600

Interest for 9 months = 9600/12*9 = 7,200

Balance sheet Extract

Other Income

Int Accrued on Note Receivable      $7,200

Current Asset

Note Receivable                                $16,000

Int Accrued on Note Receivable      $7,200

Total Current Asset                            $23,200

6 0
3 years ago
When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it p
lozanna [386]

Complete question:

When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor __________.

A will necessitate renegotiating price and delivery terms.

B allows for a straight rebuy.

C offsets a consensus buying center culture.

D will probably not be an advantage in getting the new order.

E will allow Val to get the order even though his products do not meet the specifications.

Answer:

In this situation, being the current vendor will probably not be an advantage in getting the new order.

Explanation:

A request for proposal (RFP) is a paper which requests prospective suppliers to make business proposals to submit proposals, which are often made by a bidder, by an organization, corporation or a bidder involved in purchasing a product, service or valued item.

The RFP outlines the tendering process and contract requirements and directs the design of the tender.

Government organizations use RFPs mainly to get the lowest bid possible.

RFPs allow the requester to obtain multiple bidders.

8 0
2 years ago
What are some factors that can affect revenue
Valentin [98]
I need more information that affects the company’s revenue in a good way or a bad way?
5 0
3 years ago
Read 2 more answers
Other questions:
  • Mega Mart is a part of a business unit that has grown very slowly over the years. According to your local business newspaper, th
    10·1 answer
  • Nathan has created a chart depicting changes in the eating habits of various members of an average American family. Based on thi
    13·1 answer
  • What is a partial refund of the purchase price of an item? A. Pretext B. Sale C. Rebate D. Phishing
    12·1 answer
  • TJX's handling of its serious data breach is consistent with which one of the following?a) Stakeholder theoryb) Stockholder theo
    12·1 answer
  • The annual Sporting News Baseball Yearbook has exactly the same stories but with 15 different covers to appeal to baseball fans
    9·1 answer
  • On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.
    5·1 answer
  • Jessica bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $250 less than the desktop. She
    7·1 answer
  • Which of the following lists only the factors that would cause a decrease in the supply of an item? A. A fall in input prices; a
    10·1 answer
  • Difference between credit sales and credit card sales
    9·2 answers
  • Bargaining associations are required to bargain without making any threats against buyers. true false
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!