Answer:
D: Loss leading
Explanation:
Loss leading or the loss leaders is the concept where we decree the price of certain well known and popular products to such a level that customers are amazed. We even start selling that product below its cost as well. The basic logic behind loss leaders is to increase the store traffic and therefore increasing the sales. For example, if everyone is selling eggs at $2 per dozen, and you get it at $1.5 from the whole seller then you can either sell it at the same amount on which you purchasing it from the whole seller, at $1.5 or even below than this at £1.3. People knows that eggs are usually sols at $1.5 but your concept of loss leading will attract them towards your store, and besides purchasing eggs at $1.3, they will also but many other high profit margins products as well.
Answer:
c.Moral hazard
Explanation:
Moral hazard can occur when banks take on excessive risk more than they would normally take on because they know they would be bailed out if they fail.
I hope my answer helps you
Answer:
6%
Explanation:
Data provided as per question is as given below:-
Redeemed amount = $1,000
Sale value of Bond = $687.25
Number of year = 5
The computation of interest rate is as shown below:-
Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1
= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1
= (1.338) ^ (0.2) - 1
= 0.06
= 6%
Answer:
$122,963
Explanation:
NU furniture have a sales of $241,000
The depreciation is $32,200
The interest expense is $35,700
The costs is $103,400
The tax is $14,637
Therefore, the operating cash flow for the year can be calculated as follows
= Sales-costs-taxes.
= $241,000-$103,400-$14,637
= $122,963
Hence the operating cash flow for the year is $122,963
