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3 years ago

Why is understanding debt important?

Business

1 answer:

VikaD [51]3 years ago

7 0

Answer:

Understanding debt is critical to both financial literacy and financial security.

Explanation:

While most people have some debt, typically the importance of that debt is in direct proportion to the amount of debt they have. While some debt, such as a mortgage, business or automobile loan, can show stability and maturity, having more debt than you can pay can affect your health, relationships and your employment.

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What minimum amount of body weight loss (lbs) is shown to improve physical capabilities and quality of life?

Paraphin [41]

This is not a question that can really be answered with a specific number. The answer will vary from person to person and it would be best to consult a medical professional to get a solid answer for your individual situation. Some people would benefit by weight loss, others might just need to adjust their habits in order to improve their abilities and quality of life. Generally speaking, weight loss will not matter as much as eating healthy and getting regular exercise. Both of these will have an impact on quality of life.

5 0

3 years ago

deluge writing is preparing to launch a new product. the cfo has been asked to present a financing plan to the board. what would

aliina [53]

As the CFO has been asked to present a financing plan to the board, his best approach to keep the company from being heavily leveraged from product launch will be to maintain a moderate debt level.

<h3>What do we mean by Financial leverage?</h3>

Basically, a leverage means the use of debt (borrowed capital) in order to undertake an investment or project. The result of the process is to multiply the potential returns from a project but it will also multiply the potential downside risk in case the investment does not pan out.

Going forward, when we refers to a company as "highly leveraged," this means that item has more debt than equity. In conclusion, most investors use leverage to significantly increase the returns that can be provided on an investment.

Read more about Financial leverage

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8 0

1 year ago

Changes in the CPI overstate the true inflation rate due to four "biases." If apple prices rise rapidly during the month while

tino4ka555 [31]

Answer:

The answer is: Substitution bias

Explanation:

In plain simple words, substitution bias refers to the fact that the CPI considers that customers have to buy the same item and in the same quantity each month. That is something rarely happens in "normal" life. The CPI uses a fixed basket of products, that someone for some reason determined was the most representative basket of products a family buys every month. But what happens if consumers decide to not follow this given basket of goods or decides to substitute some of its products for others (instead of Coke I might decide to buy Pepsi because it offers me a 15% discount).

7 0

4 years ago

What is the primary purpose of a mission statement?

Vedmedyk [2.9K]

The answer to this is C. To list the immediate goals of the business.

7 0

4 years ago

Underwater, Inc. had a flood in its plant that destroyed most of its inventory. Its records show that beginning inventory was $2

nata0808 [166]

Answer:

$ 16,875

Explanation:

Beginning Inventory $ 20,000

Purchases $ 250,000

Sales $ 300,000

Gross Profit: 35%

Inventory before flood determination:

Cost of Sales ( 100% - 35% ) x Sales

= ( 1 - 0.35 ) x 300.000 ---> Cost of Sales

= 195,000

Sales 300,000.00 100%

Cost 195,000.00 65%

Gross Profit: 105,000.00 35%

Beginning Inventory $ 20,000

Purchases $ 250,000

Sales -$ 195,000

Inventory before flood: $ 75,000

Inventory damaged sold: $ -7,500

Net Loss: $ 67,500

Insurance Reimbursement: $ 50,625.00 ( 67,500 x 75% )

Net Loss from flood: $ 16,875 ( 67,500 - 50,625 )

5 0

3 years ago