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motikmotik
3 years ago
15

An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the r

est of the investment. Soon after buying the homes she sold all 10 homes for $60,000 each and earned a profit of $100,000 - an astounding 100% return on investment. This scenario is an example of:_________
a. risk-return
b. interest rate spread
c. financial liquidity
d. leverage
Business
1 answer:
scZoUnD [109]3 years ago
3 0

Answer:

d. leverage

Explanation:

Leverage -

It is a type of investment strategy , where the borrowed money is used .

It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage  .

Hence , from the given scenario of the question,

The person uses borrowed money to increase the potential return of an investment .

Hence , from the question,

The correct term is leverage .

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• natural resources for production

Explanation:

Industrialization is when am economy moves from the agricultural sector to the industrial sector.

The factors of industrialization does Baines cite in the reading include:

• Water power to run machines

• rivers for transportation of goods

• natural resources for production

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A company received a bank statement showing a balance of $78,000. Reconciling items included outstanding checks of $2,400 and a
Kisachek [45]

Answer:

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Explanation:

Adjustment of bank balance is a bank reconciliation procedure, that is used to match the amount in the bank statement with the amount in the company's balance sheet.

To adjust the bank balance, particulars that need to be subtracted or added to the bank statement balance has to be identified and treated accordingly.

For this example, the adjusted balance is calculated thus:

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Adjusted Bank Balance = 78,000 - 2,400 + 9,400 = $85,000

Note:

outstanding checks are subtracted because they are payments to be made made by the company, representing a liability to the company (payer)

deposit in transit is an income to the company that has not been credited yet, but that will be credited.

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slava [35]

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Explanation:

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