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Svetradugi [14.3K]
3 years ago
6

What is the difference between a commercial bank and a savings bank

Business
2 answers:
Andreas93 [3]3 years ago
3 0
The primary difference is the way each is regulated, which determines the type of banking products they offer. ... Both commercial banks and S&Ls also make loans to businesses and government agencies.
DerKrebs [107]3 years ago
3 0

Answer:

A commercial bank provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

A savings bank has a primary purpose which is accepting savings deposits and paying interest on those deposits.

Explanation:

Commercial banks are<u> owned and managed by a board of directors selected by stockholders</u>. Many commercial banks are <u>large, multinational corporations.</u>

S&Ls (Savings and Loan banks- just another name) are <u>owned and chartered differently</u> than commercial banks, and are <u>generally more locally oriented in terms of customers.</u>

By law, S&Ls <u>may lend up to 20% of their assets for commercial loans</u>, and only half of that can be used for small business loans. S&L <u>must be able to show that 65% of its assets are invested in residential mortgages and other consumer-related assets.</u>

Commercial banks do not have these types of limitations that S&L banks do.

Hope this helped :)

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A leveraged buyout (LBO) Multiple Choice is based on an expectation that the new private owners will not restructure the company
pochemuha

Answer:

Changes the ownership structure of a company from public to private.

Explanation:

A leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company.

It is known to change the ownership structure of a company from public to private.

This is because it isn't usually sanctioned by the target company. It is also seen as ironic in that a company's success, in terms of assets on the balance sheet, can be used against it as collateral by a hostile company.

3 0
3 years ago
Different budgeting periods and explain each one
RideAnS [48]
Budgeting period is an allocation of time to plan for your money and how or where it's gonna be used. There are two types of budgeting period: Short term and Long term.

Short-term Budgeting period

This budgeting period covers from 6 months to a year, depending on the nature of the business. For seasonal businesses, it should cover at least one seasonal cycle. For wholesale and retail businesses, 6 month is enough.

Long-term Budgeting Period

This covers more than a year of operating. It focuses on the futuristic performance of a business or company. Factors used are market trends, economic growth, inflation rates and industrial production. These factors help foresee profit or problems that may arise. Consequently, this will also help you in your present decisions.
5 0
3 years ago
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 35,000 cases of cola were sold every we
galben [10]
Mark brainlest please


Answer:

The amount of tax will be $3
Tax Burden on consumer is $2
Tax burden on producer ( in case you want to know) will be $1

Check the image below.

Tax is equal to the difference between the price actually paid by the buyer and the price actually received by the seller. Tax= Price paid by buyer-Price received by seller Tax= $8-$5 Tax = $3 Thus the tax computed is $3 per case.

3 0
3 years ago
Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard
AlexFokin [52]

Answer:

Labor Rate Variance = - $1,188 Unfavorable

Explanation:

Provided labor hours for each radio = 0.9

Standard labor cost per hour = $7.20

Actual labor cost = $48,708

Actual labor hours = 6,600

Actual labor rate = $48,708/6,600 = $7.38

Labor Rate Variance = (Standard Rate - Actual Rate) \times Actual Hours

= ($7.20 - $7.38) \times 6,600 =<em><u> - $1,188 Unfavorable</u></em>

6 0
3 years ago
Beth has been searching for the right sunscreen lotion for her skin type. She tries a few brands, but none of them suit her sens
AlladinOne [14]

Answer:

The correct answer is C

Explanation:

Word of mouth is defined as the advertisers and marketers who seek to establish or create something worth talking regarding and then actively encourage the people to talk regarding it.

Organic word of mouth (termed as Organic WOM), is defined as the word of mouth that naturally happen, when the person become himself the advocate as they are happy with the product and have a desire to share the support.

So, in this case, the beth who searching fro lotion tries few brands, but when she finally finds the product or lotion which suits her skin. She tells her close friends regarding it. Therefore, it is an example of Organic Word of Mouth.

7 0
3 years ago
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