Answer:
Prepayment penalty
Explanation:
A prepayment penalty is charged when a borrower significantly writes down or offset his loan earlier than as planned in the loan agreement , especially within the first five year of taking the loan. Some lenders restrict repayment to a certain value before you can be fined.It serves as a form of security on the lenders interest income.
It is calculated on the outstanding loan balance which mean the longer you owe , the less your penalty and vice versa.
On the side of the borrower , accepting the clause in the loan agreement always come with a lower interest on loan
The answer is confidentiality.
Answer:
$275,000
Explanation:
Cash collections in April = 70% of sales in April +20% sales in March + 10% sales in Febuary
= 70% * $250,000 + 20% * $350,000 + 10% * $300,000
= $275,000
Answer:
$22
Explanation:
JL Groomers will maximize its accounting profit while taking to 0 its economic profits when the marginal revenue = marginal costs.
Economic profits are not the same as accounting profits, since they include the opportunity costs of investing the money somewhere else. That is why in the long run firms are not able to make economic profits since as long as they exist, new competitors will enter the market. But on the short run, firms are able to make economic profit, but by doing so, they will not be maximizing their accounting profit.
Economic profit = accounting profit - opportunity costs
Opportunity costs are the extra costs associated or benefits lost from choosing one activity or investment over another one.
