Answer:
The statement is: True.
Explanation:
Sole proprietorships are businesses where the owner is the only individual in charge of the entity and the operations. This type of entity is easy to create and dismantle because there are not many regulations for them. The sole proprietor does not pay corporate taxes since the business income is included in the personal tax return the owner sends to the <em>Internal Revenue Service</em> (IRS).
<em>Sole proprietorships represented approximately 73% of businesses in the U.S. during 2011, according to the Census Bureau.</em>
Explanation:
Basis accounting principle says that asset account are debited when they are increasing and liability are credited when they are increasing and vice versa.
Therefore, in this transaction
Assets(cash in hand) increase by $50000, liabilities(loan) increase by $50000 and there is no effect on equity.
<h3>Question:</h3>
List 3 characteristics of a mixed economy system.
Answer:
♦A mixed economy has three of the following characteristics of a market economy.
<h3> </h3><h3>♦First, it protects private property. </h3><h3>♦Second, it allows the free market and the laws of supply and demand to determine prices. </h3><h3>♦Third, it is driven by the motivation of the self-interest of individuals.</h3>
Explanation:
<h3>#Let's Study</h3><h3>#I Hope It's Help</h3><h3>#Keep On Learning</h3><h3>#Carry On Learning</h3>
Answer:
The discount window
Explanation:
As we can see that there is a liquidity problem for the bank as it has not enough funds to payoff back to the depositors. Also No other bank is ready to lend.
The discount window would be the monetary policy instrument that controlled by the central bank in which it permits the institutions that they are eligible for borrow the money so that they could meet their shortage and this money would be lend for short term duration by the central bank
Therefore it is a discount window
Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million