Answer: Option D
Explanation: In simple words, weighted average cost of capital refers to the amount of return that the investors of a company are expecting. It includes all the security holders of the company and calculates the rate as per the weights that are applicable in the target capital structure.
Weighted average cost of capital is of high importance as it helps an organisation to clearly evaluate and analyze its current financial situation and if they need to change their existing capital structure.
A high WACC calls for higher profits as company has to make sure that security holders gets their returns and vice versa.
Offering temporary coverage to an insured through oral or written contracts is known as A cover note.
<h3>What is a temporary insurance contract?</h3>
A life insurance term is used to represent the amount of insurance supplied by the insurer between the period when the application is taken and the first mode of compensation.
If an insurance contract delivers coverage against the insured's loss of life, it is called a life insurance contract. All additional insurance contracts that deliver coverage for objects other than life are called non-life or general insurance arrangements.
A cover note is a temporary paper issued by an insurance company that delivers proof of insurance coverage until a final insurance policy can be given.
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The specific kind of insurance policy based on the description provided by the question would be the Spendthrift clause. By definition, a spendthrift provision is a term that is used mainly to describe a provision wherein the inheritance of the benefactor is protected from being given away to another individual.
Answer: d). A pizza business provides delivery for an additional fee
.
Explanation: In a circular flow diagram, the firms supply goods and services to the households in return for a payment. The households supply factors of production to the firms in return for factor payment made by firms. Out of the given options only in option d there is an interaction between the household and the business sector. The pizza business is providing a good and a service to households in exchange for revenue/fee. Other options are incorrect because,
In option a, the service is provided by the government.
In option b, describes only the action of the business sector.
In option c, there is interaction between the household and the government.
Checkable deposits are classified as money because , They can be readily used in purchasing goods and paying debts.Choice( A)
Explanation:
Any demand deposit account against which, one can write a check or a draft is called checkable deposit. It is mainly used when a person has to withdraw money, at a short notice and he can do so, without giving any prior notice to the bank.
These deposits help in immediate access to cash. As these deposits are available easily , they are considered to be assets. .
Its an asset for the person who withdraws, as he can withdraw anytime without notice. It is a liability to the bank as the bank has to pay it, whenever the customer asks for it.
As these checkable deposits are easily available, they can be readily used in purchasing goods and paying debts.
