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3 years ago

What distinguishes open-ended credit from closed-ended credit?

Business

2 answers:

Naily [24]3 years ago

7 0

The main difference is must repay vs doesn’t need to repay.

<u>Explanation: </u>

Closed-end credit is a payment agreement in which the debtor is expected to repay the tax due plus the interest in a particular number of equivalent arrangements, typically on a monthly basis.

Open-ended loan, credit is provided in anticipation of any payment so that the debtor does not have to repay every period the credit is demanded.

Car and ship loans are prominent examples of closed-end loans. On the other side, open-ended loans, such as credit card payments, can have the amount owed up and down as the creditor takes money against the line of credit.

KiRa [710]3 years ago

6 0

Open-ended credit is credit that can be used repeatedly.

Example: A credit card

Close-ended credit is credit that has to be paid in full by a certain date

Example: A house loan (mortgage)

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Joseph Juran provided guidance regarding how to conduct quality planning, quality control, and quality improvement. Which of the

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Answer:

b. work to identify root causes, not just symptoms.

Explanation:

The main thing on which Joseph Juran focused was on quality, how it could be improved in planning, and performing properly.

This provided for the quality controls, plans, improvements which could be made, but it did not work on finding the causes behind the lack that why it could not be achieved.

Accordingly it did not in manner focused on the finding the symptoms or root causes.

As it was focused on the action of now what can be done.

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3 years ago

Creating product assortments from several sources to serve customers would be an example of a __________ function.

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An example of a logistical function

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4 years ago

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is

astra-53 [7]

Answer:

a. 300

d. 200

Explanation:

EOQ = $\sqrt{(2 * Annual demand * ordering cost) / holding cost } \\$

2 * 7500 * 30 / 0.5

EOQ = 948 units

When price is $48 per unit

EOQ = 968 units

Total cost = Holding cost + ordering cost + purchase cost

When the order is for 500 price is $48

Total cost = $2,400 + $30 + $24,000 = $26,430

When the order is for 300 price is $50

Total cost = $1,500 + $30 + $15,000 = $16,530

When the order is for 306 price is $50

Total cost = $1,530 + $30 + $15,300 = $16,860

When the order is for 200 price is $50

Total cost = $1,000 + $30 + $10,000 = $11,030

The best two possible order quantities are 200 and 300 which results in minimum total cost.

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3 years ago

Assume that on July 1, 2018, Togo's Sandwiches issues a $2.97 million, one-year note. Interest is payable at maturity.

allsm [11]

Answer:

7% interest at Cec-31 for 6 months:

Dr Interest expense(7%*$2,970,000*6/12) $ 103,950

Cr Interest payable $103,950

9% interest at Sept 30 for 3 months:

Dr Interest expense(9%*$2,970,000*3/12) $66,825

Cr Interest payable $66,825

6% interest at Oct 31 for 4 months:

Dr Interest expense(6%*$2,970,000*4/12) $ 59,400

Cr Interest payable $59,400

8% interest at Jan 31 for 7 months:

Dr Interest expense(8%*$2,970,000*7/12) $138,600

Cr Interest payable $ 138,600

Explanation:

The rationale for debiting interest expense is that is an expense account and increase in expense is normally debited to expense account while interest payable account is credited as the interest obligations are yet discharged by a way of paying cash to investors

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3 years ago

Morgan company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semi-annually. the current market rate is

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The amount of interest owed to the bondholders for each payment is $33,750. The amount interest to the bondholders for each payment should be calculated with this formula: Interest Yield Rate x Face Value of Bond x Time (9% x $750,000 x 1/2). The market interest rate of 8% has no effect on the interest payment calculation but it impacted the bond market value.

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3 years ago