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3 years ago

As a current or future business owner, entrepreneurs need to be able to assess collateral in order to secure a possible

Business

1 answer:

amm18123 years ago

3 0

Answer:

True

Explanation:

Collateral is an asset used as a guarantee or security for the payment of a loan. It assures the lender that a borrower will pay back the loan.

If an entrepreneur applies for a business loan, the bank will most likely demand collateral. The entrepreneur will need to offer an asset, either property or motor vehicle, that will act as a guarantee for the loan. Should the entrepreneur fail in repayment, the bank can sell the asset to recover their money.

Few, if any, will lend anyone money based on a business idea alone. Many banks will demand a business proposal to be backed with some guarantee to secure funding.

You might be interested in

A project has an initial cost of $2,400. The cash inflows are $0, $1,600, $1,100, and $700 over the next four years, respectivel

lesya692 [45]

Answer:

It will take 2.73 years to cover the initial investment.

Explanation:

The payback period is the time required to cover the initial investment:

Year 1= 0 - 2,400= -2,400

Year 2= 1,600 - 2,400= -800

Year 3= 1,100 - 800= $300

To be more accurate:

(800/1,100)= 0.73

It will take 2.73 years to cover the initial investment.

7 0

3 years ago

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________

omeli [17]

Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.

Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.

Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.

4 0

3 years ago

When evaluating the pulmonary function test results for a COPD client, which one correlates to the mismatch of ventilation and p

crimeas [40]

Answer:

The correct answer is B.

Explanation:

I had to look at the options so that I could solve the exercise correctly. The options are:

A) The forced vital capacity (FVC) is high.

B) The forced expiratory volume (FEV) is decreased.

C) Total lung capacity (TLC) is decreased.

D) Marked decrease in residual volume (RV).

The correct answer is option B. In people with chronic lung disease, FVC is decreased, FEV1.0 is decreased, and the ratio of FEV1.0 to FVC is decreased. Lung volume measurements indicate a large increase in VR, an increase in total lung Cc, and an elevation in the ratio of VR to TVC.

Have a nice day!

7 0

4 years ago

A decrease in the price of domestically produced industrial robots will be reflected in a. both the GDP deflator and the consume

andrezito [222]

Answer:

The correct answer is option c.

Explanation:

A consumer price index measures the change in the price level of weighted average of a basket of goods and services purchased by the consumers.

GDP deflator measures the change in the price of all domestically produced goods and services.

A change in the price of domestically produced industrial robots will be included in the GDP deflator as it includes the prices of all domestically produced goods and services.

But it will not be included in the CPI as the industrial robots are not purchased by consumers in households, they are not consumer goods.

8 0

3 years ago

A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale

alexandr402 [8]

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

4 0

3 years ago