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3 years ago

What is a major difference between retail banks and credit unions?

Business

2 answers:

Ksju [112]3 years ago

6 0

Answer:

The answer is B Retail banks operate in order to earn profit, while credit unions are nonprofit.

Explanation:

Just took the test :)

Bezzdna [24]3 years ago

5 0

Answer:

Retail banks operate in order to earn profit, while credit unions are nonprofit

Explanation:

What is a major difference between retail banks and credit unions?

Retail banks only serve businesses, while credit unions only serve individuals.

This answer is false, both retail banks and credit unions serve businesses and individuals.

Retail banks operate in order to earn profit, while credit unions are nonprofit.

This answer is true, retail banks earn profits while credit unions are non-profits.

Retail banks only have small local branches, while credit unions are nationwide.

This answer is false. Generally speaking, retail banks have a much larger geographic footprint than credit unions. Many retail banks are found across the entire country (and sometimes world!) but most credit unions are focused on serving their local community.

Retail banks manage a person's money, while credit unions focus on providing loans.

This answer is false. Both retail banks and credit unions offer money/investment management services in addition loans. The financial products offered by retail banks and credit unions depend on the market served and business conditions.

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On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,

Anestetic [448]

Answer:

The net realizable value of accounts receivable immediately after the write-off is $33,400

Explanation:

Net realizable value of accounts receivable is the Amount that the Company expects to receive from its Account Receivables after accounting for Debts Written Off and Allowances for Doubtful debts

Net realizable value of accounts receivable:

Accounts Receivable $37,000

Less Uncollectible accounts written-off ($800)

Less Allowance for Doubtful Accounts ($2,800)

Net realizable value of accounts receivable $33,400

5 0

3 years ago

Read 2 more answers

The ability to produce a wide range of products or service is:

dezoksy [38]

Answer:

a. mix flexibility

Explanation:

Mix flexibility -

It refers to efficiency to produce and maintain various goods and services , is referred to as mix flexibility.

The prediction about the goods and services that would be sold in the specific product line .

The product and options mix as well as aggregate product families need to be predicted.

Hence, the correct term from the given statement of the question , is mix flexibility.

6 0

3 years ago

One major assumption of economics is that people

storchak [24]

In any field of study, people always start with the ideal scenario in order to eliminate external factors that could only add complexities. Then, when we fully understand the concepts, the calculations gradually evolve to more complex ones to cater to realistic problems.

The basic assumptions that economists do are the following
1. People always have preferences on a set of outcomes and this can be determined through the quantity and quality of their value
2. People always maximize utility or the satisfaction you get out of buying and using the product.
3. Businesses always maximize profit.

4 0

4 years ago

In 2013, Roma was a schoolteacher and earned $40.000. But she enjoys creating cartoons, so at the beginning of 2014, Roma quit t

Neko [114]

Answer:

a. $56,400

b. 101,750

c. Economic loss of $108,150

Explanation:

Explicit Cost

The direct payments made to other for different purposes s explicit cost. Such as wages, rent etc.

For Roma Explicit costs are

Computer $55,000

Printer lease payment $150

Paper, utilities, & postage $1,250

Total Explicit Cost $56,400

Implicit Cost

Any opportunity cost is the implicit cost. The loss of benefit which someone faces for choosing an alternative.

For Roma Explicit costs are

School Teacher Salary $40.000.

Building rent $55,000

Bank Interest (5% 55,000) $2,750

Computer offer $4,000

Total Implicit cost $101750

Economic Profit

Economic Profit is the net of Revenue / Income less Implicit and Explicit costs associated with the revenue / Income.

Economic Profit / loss = Total Revenues - (Explicit Costs + Implicit Costs)

Economic Profit / loss = $50,000 - ($56,400 + 101,750)

Economic Loss = $108,150

3 0

3 years ago

A store offers two payment plans. under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

Ann [662]

Answer

a-1 . The Present Value of the installment plan is $94.38.

We calculate the PV of $25 for each of the three following years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,3}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 3 years.

$PVIFA_{0.04,3} = 2.77509103$

We can ascertain this in excel by using the syntax : =pv(0.04,3,-1).

In this syntax, 0.04 is the interest rate, 3 is number of periods and since the annuity is $1 we write 1. We need to put in -1 because otherwise, we'll get the answer as a negative number. This is because excel treats any Present Values as outflows, and records them as negative.

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 2.77509103$

$PV_{Annuity} = 69.3772758$

In order to find the Present Value of the installment plan, we need to add the down payment of $25. So,

$PV_{instalment} = $25 + 69.3772758$

PV of instalment = $94.38

a-2. We get a 6% discount when we pay in full, so the purchase price of the product becomes:

$Purchase price = 100 - (100*0.06)$

$Purchase price = $94 (100 - 6)$

Since the purchase price of the pay in full plan is lesser than that of the installment plan, the pay in full plan is a better option.

b-1. The Present Value of the installment plan is $90.75.

Since the first instalment falls due only after one year, we calculate the PV of $25 each of four years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,4}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 4 years.

$PVIFA_{0.04,4} = 3.62989522$

We can ascertain this in excel by using the syntax : =pv(0.04,4,-1).

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 3.62989522$

$PV_{Annuity} = 90.7473806$

b-2. In this case, the PV of the pay in full plan remains at $94 while that of the instalment plan falls to $90.75. Since the PV of the Instalment plan is lower, we'll choose the instalment plan.

6 0

3 years ago