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3 years ago

Why do some lenders require borrowers to secure credit

Business

1 answer:

joja [24]3 years ago

4 0

<u>Complete Question:</u>

Why do some lenders require borrowers to secure credit?

A. To prevent defaults

B. To guarantee full repayment

C. To avoid any losses

D. To reduce risk

Answer:

Option D. To reduce risk

Explanation:

The reason is that the lender faces the credit risk which is the risk of the loss of the repayment in whole or in parts and the risk of default of the interest payments by the borrower.

So if we see the options, the option A, B and C are basically the credit risk that the lender is facing so the only option that is more general (not specific as the option A, B and C) and includes these three options is option D.

So the option D is correct.

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The journal entry to record the sale of treasury stock might include all of the following except for:

Ghella [55]

Answer:

b. a debit to Paid-In Capital from Sale of Treasury Stock.

Explanation:

Treasury stock is the stock of equity purchased by the company itself, from open market. Basically it has a debit balance. And it is shown as a negative value from common equity in the balance sheet.

Now when there is sale of such treasury stock, this treasury stock will be credited, also in next entry common stock will be credited as it will increase automatically therefore in no circumstances Paid in capital will be debited from sale of treasury Stock.

Final Answer

b. a debit to Paid-In Capital from Sale of Treasury Stock.

4 0

3 years ago

Joey realizes that he has charged too much on his credit card and has racked up $5,100 in debt. If he can pay $125 each month an

N76 [4]

Answer:

It will take Joey 63.59 months to pay off the debt.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or debt amount = $5,100

P = Monthly payment = $125

r = annual percentage rate (APR) / 12 = 18% / 12 = 0.18 / 12 = 0.015

n = number of months it will take Joey to pay off the debt = ?

Substitute the values into equation (1) and solve for n, we have:

5100 = 125 * ((1 - (1 / (1 + 0.015))^n) / 0.015)

5100 / 125 = (1 - (1 / 1.015)^n) / 0.015

40.80 * 0.015 = 1 - 0.985221674876847^n

0.985221674876847^n = 1 - 0.612

0.985221674876847^n = 0.388

loglinearize both sides, we have:

nlog0.985221674876847 = log0.388

n = log0.388 / log0.985221674876847

n = -0.411168274405793 / -0.00646604224923186

n = 63.59

Therefore, it will take Joey 63.59 months to pay off the debt.

8 0

3 years ago

As part of their annual evaluation, a violence prevention organization reported that their violence prevention program saved ove

Ivahew [28]

Answer:

D. Cost-effectiveness

Explanation:

The cost effectiveness refers to an output where it is produced in a good way without incurring a lot of money

Here in the given situation, it is mentioned that the organization i.e. violence prevention reported the violence prevention that they saved over one million dollars in term of year by preventing the 300 shooting per yer

So this situation represents the cost effectiveness

hence, the correct option is d.

6 0

3 years ago

Based on the suggestions in part a of the systems analyst's toolkit, what visual aids should susan use during her presentation?

kondor19780726 [428]

Susan should use whiteboards, flip charts, overhead transparencies, slides, films and videotapes these are all thing that is suggested by the toolkit.

The brainest answer would be appreciated.

6 0

3 years ago

With an understanding of which consumers buy a firm's new products at each stage of the diffusion of innovation process, the fir

vesna_86 [32]

Answer:

Advertising, promotion, pricing, sales and distribution.

Explanation:

Marketing mix refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

Hence, with an understanding of which consumers buy a firm's new products at each stage of the diffusion of innovation process, the firm can adjust its advertising, promotion, pricing, sales and distribution strategy accordingly.

5 0

3 years ago