Answer:
Business
Explanation:
A business is a legal activity which we undertake to earn money. In this case, both Melvin and Neil work together to earn money by running pawnshop. Selling of personal items of the borrower and interest receipts are part of the operations of the business. It is not proven from the scenario that it is partnership (business type) because it is not written that both Melvin and Neil share profits and losses associated with this business.
Answer:
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Explanation:
The value of total assets can be calculated by adding the value of current assets and the value of fixed assets.
Total assets = Current Assets + Fixed assets
Total assets = (7950 + 1263 + 3907) + 8400
Total Assets = $21520
The working capital is the difference between the value of current assets and the value of current liabilities.
Net Working capital = Current assets - Current Liabilities
Net working capital = (7950 + 1263 + 3907) - 2214
Net Working capital = $10906
The ratio of net working capital to fixed assets can be calculated by dividing the value of net working capital by the value of the fixed assets.
Net working capital to fixed assets = 10906 / 21520
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Answer:
premium
Explanation:
Premium is the term given to the regular and periodic payments that the insured makes to the insurance companies. Premiums are the payments for the insurance coverage.
Insurance coverage is a contract between the insurance company and the customer. As per the contract agreement, the company provides insurance coverage, and the customer pays premiums. In other words, Premium is the consideration for the insurance coverage.