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kumpel [21]
3 years ago
6

“Long-term loans are riskier for lenders because they cannot accurately predict long-term economic trends.” What economic trends

might this statement refer to? What impact would they have on interest rates?
Business
1 answer:
Stels [109]3 years ago
8 0
The global and national economic indicaters. For example stability amd law and order. If the conditions for business are less suitable,people will not invest. That means there will be less money available. To utilize the unused funds, the central bank may lower the interest rate to make borrowing easier and savings difficult
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Problem 5-30 Graphing; Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8][The following information ap
WARRIOR [948]

Answer:

Break Even Point

In Units = 2,000 units

In value = $80,000

Explanation:

Break even Point = \frac{Fixed\ Cost}{Contribution}

When we use contribution per unit, we get the break even point in units sales.

When we use the contribution margin as a percentage of sales we get break even sales in value.

Contribution per unit = $20

Contribution margin in percentage = $20/$40 = 50%

Therefore, Break even Point in units = \frac{40,000}{20} = 2,000

Break even units = 2,000

Break Even Point in value = \frac{40,000}{0.50} = 80,000

Sales to be made in value at break even = $80,000

8 0
3 years ago
Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss
Greeley [361]

Answer:

Net Cash Flows from operating activities is $68.5 million.

Explanation:

The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.

The net cash flows from operating activities can be calculated using the following method:

                                                                 Millions

1. Net Income                                                65

<u>Add Non Cash Deductions</u>

2. Depreciation                                             5.5

3. Loss on sale of Equipment                       1.5

<u>Add / (Less) the increase or </u>

<u>decrease in current Assets or </u>

<u>liabilities</u>

4. Increase in Trade Receivables                (2.5)

5. Increase in Trade Payables                      3.5

6. Increase in inventory                               <u> (4.5) </u>

Net Cash Flows from operating activities $68.5

4 0
3 years ago
In​ class, we discussed the differences between a contribution income statement versus the traditional approach​ (absorption whi
Irina-Kira [14]
B) Contribution margin
5 0
3 years ago
Supporters of free trade argue that it creates which economic benefit?
Zepler [3.9K]

Answer:

C. Increasing efficiency by allowing for greater specialization

Explanation:

A free economy is one where the forces of demand and supply determine production and consumption. The government or the central authority does not interfere with economic activities in a free economy.

In a free economy, the factors of production are held by the private sector. There is increased business competition as entrepreneurs have the freedom to open a business of their choice. Buyers have the liberty to buy from their preferred suppliers.  Businesses are profit-motivated, which forces entrepreneurs to be creative and innovative to win customers and make more sales. They have to specialize and increase their efficiency to be more competitive.  

7 0
3 years ago
Read 2 more answers
Your colleagues at work are constantly talking about the vice-president in your region. He is perceived throughout the organizat
sergij07 [2.7K]

Answer:

The correct answer is B) coercive.

Explanation:

A coercive boss is a rigid and inflexible leader. When this style is used, the leader chooses to give many direct orders without offering his subordinates the opportunity to express their ideas and opinions.

This leader not only does not opt for the reward system but also focuses on criticizing and punishing the failures generated by disobedience. Therefore, the motivation of the team suffers greatly from the inability of employees to perceive that thanks to their work, business objectives are being achieved.

It is usually the least effective management style but ... it may be recommended in crisis situations when it is necessary to show authority and employees need clear and direct orders.

5 0
3 years ago
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