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jok3333 [9.3K]
3 years ago
11

Buying an existing business is beneficial because: a.it does not require a large initial capital. b.it has an established relati

onship with lenders. c.it does not need to be nurtured. d.it has financial support from the government.
Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Buying an existing business is beneficial because it does not require large initial capital.

Option a

<u>Explanation: </u>

The idea of buying an existing business is much easier than that of starting a business. Buying an existing business includes lesser risks. When we are buying a business, it means that we are taking over an operation that is already generating some profits or cash flows.  

Moreover, it does not need enormous amount of capital since, majority of the setups will already be there and all we have to do is just to reconstruct and maintain it. We cannot be sure that whether the previous business holder had professional financial dealings with the government side so, it sometimes may become our duty to initiate the papers and get financial support from the government if required.

In addition, there are cases in which the lenders that the previous owner dealt with will not be the same as ours. Therefore, the answer would be option a.

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American express and discover card are examples of open loop systems. <br> a. True <br> b. False
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A. True
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Outsourcing means that :
g100num [7]

Answer:

B

Explanation:

It is the correct answer and outsourcing is were another company hires a company to essentially do their job. But done by a different company.

7 0
3 years ago
A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach
Naddik [55]

Answer:

Cash flow year 0   (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price        85,000

installation cost       <u>    15,000</u>

total cost                     100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow    (110,000)

4 0
3 years ago
Suppose that you open a mutual fund account with a deposit of 500 dollars. 5 months later, the fund balance is 600 dollars, and
faust18 [17]

Answer:

The question is not complete, below is the complete question:

Suppose that you open a mutual fund account with a deposit of 500 dollars. 5 months later, the fund balance is 600 dollars, and you withdraw 216 dollars. A year after the account was opened, your balance is X dollars. If the dollar weighted and time weighted rates of return were the same, what is the rate of return? (Assume simple interest for the dollar weighted calculation.) Answer should be a percent!!!

Answer:

The rate of return is 48% on deposited fund.

Explanation:

The rate of return on investment is the percentage increase on an amount invested for a particular period of time, and to calculate this, we will use the simple interest formula:

I = P × R × T

Where:

P = principal = $500

R = rate in decimal ( %rate/100)

T = time = 5 months = 5/12 years

I = interest = Principal - final balance = 600 - 500 = $100

∴ 100 = 500 × R/100 × 5/12

100 = \frac{2500R}{1200}

120,000 = 2500R

∴ R = 120,000 ÷ 2500 = 48%

Therefore rate of return (R) = 48%

For a clearer understanding of the concept of interests, let us calculate for the balance after one year (X) as shown below:

I = P×R×T

T = 1 because, X is the balance after one year.

I = 500 × 48/100 × 1

I = $240

therefore the final amount after one year = interest + principal

= 240 + 500 = 740

but we were told that $216 was withdrawn at 5 months, hence the balance after one year = 740 - 216 = $524

8 0
3 years ago
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