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Olin [163]
3 years ago
7

Floor plan loan is a type of short-term loan to finance high priced inventory in which the purchased inventory is placed as coll

ateral for the loan. (T/F)
On average, finance companies have higher capital-to-total-asset ratio than that of commercial. (T/F)

Finance companies are regulated at the federal and state levels similar to commercial banks. (T/F)

Generally, a captive finance company is wholly owned by major manufacturing companies with the purpose of providing financing to customers purchasing the parent company's product. (T/F)

Generally, consumer finance companies make loans to borrowers who have been refused loans at banks due to low income or poor credit. (T/F)
Business
1 answer:
topjm [15]3 years ago
5 0

Answer:

Consider the following explanation.

Explanation:

1. True. It is generally seen in the automobile market. The purchased inventory serves as the collateral for the loan.

2. True. The higher capital provides support for the continued solvency of these comapanies.

3. False, The federal reserve has the right and authority to regulate finance companies.

4. This statement is true.

5. True. They also charge higher interest rates than banks for bearing the risk of poor credit of these borrowers.

You might be interested in
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,100 units, its aver
Lina20 [59]

Answer:

$63,140

Explanation:

For computing the total amount of product cost first we have to find out the total product cost per unit which is shown below

Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit.

= $6.70 + $3.40 + $1.50 + $3.80

= $15.40

Now the

Product cost is

= units produced × cost per unit

= 4,100 units × $15.40

= $63,140

We simply applied the above formulas

4 0
3 years ago
If you noticed that one of your co-workers was stealing a very small amount of cash from the cash register each day, how would y
Damm [24]

Noticing a cash embezzlement done by any colleague in work area then a personal ethics tend to be involved is loyal reporting to employer with quickly and decisively response.

<h3>What are Personal Ethics at work place?</h3>

Personal ethics refers to a person's moral principles and directs individuals in their decisions both inside and outside of the workplace.

Specific moral values will impact a person on how he/she will respond to a particular situations at work and how deal with it while advancing career.

Thus if a person find his or her colleague doing cash register manipulation contact immediately the team leader or any superior for the benefit of company.

To know more about Personal Ethics at work place refer:

brainly.com/question/1031443

#SPJ1

7 0
1 year ago
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.7 hours of direct labor at the r
In-s [12.5K]

Answer:

$ 2,829,276

Explanation:

The budgeted direct labour cost is going to be based on the budgeted production units.

Production budget = sales budget + closing inventory -opening inventory

Production budget = 46,000  - 140 + 580 = 45,560

Labour budget = Production budget× hours per unit

                        =  45,560× 2.7 hrs × $23

                       =   $ 2,829,276

6 0
2 years ago
A utility‐maximizing consumer buys so as to make ________ for all pairs of goods.
Lady_Fox [76]
MUx / MUy = Px / Py is the right answer
4 0
3 years ago
A company’s perpetual preferred stock has a par value of $65 per share and it pays a dividend rate of 6.25% per year. The prefer
V125BC [204]

Answer:

Cost of preferred stock=7.41 %

Explanation:

<em>A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future. </em>

<em>A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows:  </em>

Cost of preferred stock = D/P(1-f) × 100

D- Preference dividend

P- stock price

F- flotation cost

Preference dividend = Coupon rate × Nominal value

DATA

Nominal value = $65

Stock price = $58.63  

Dividend rate=6.25%

Flotation cost = 6.5%

Preference dividend = 6.25%× 65 = 4.063

Cost of preferred stock =(4.063 /58.63×(1-0.065) × 100 = 7.41  %

Cost of preferred stock=7.41 %

5 0
3 years ago
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