Over time, the average consumer will be better off from reduced trade barriers by lower prices.
- Comparative advantages allow countries to manufacture the goods at which they are experts.
- A is skilled at making delicious wine, and they can do so for less money than B while still creating a wine of higher quality.
- When trade obstacles are lowered, wine from country A will be sold in country B, customers will have more wine options available to them, and prices will be substantially less different than they are when strong barriers are in place.
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...increase due to unemployed people becoming employed and joining labor force, along with the fact that the working age population is staying constant
Answer: B Explanation: both fred and carol (as a couple) must e-sign the return form or otherwise it may be tagged a fraudulent
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Answer:
A Banker's Analysis of an Automotive Company for Loan
Most important consideration in determining grant of loan:
c. The company has a large amount of interest payments related to other outstanding loans.
Explanation:
The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged. To grant a bank loan will have added leverage risk.
In analyzing the request for a loan, a bank should consider the borrowing company's credit history. With so much in interest payments, the company has already borrowed heavily. The banker should consider the application of the past debts. Were they used in investments or for working capital purposes or to repay liabilities and shareholders.
The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above. In reviewing the cash flow history, the projections of the company should be tested for sustainability. "Has the company been meeting its past projections?" is a relevant question to understand.#
Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged. Are there unencumbered assets that can serve as collateral in case of default?
$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss
When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).
Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.
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