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3 years ago

What is a risker loan for the lender?

Business

1 answer:

Nadya [2.5K]3 years ago

4 0

Answer:

Explanation:

A risky mortgage is really a loan product that doesn't correspond to the borrower's ability to repay it. During the crisis, certain mortgage types were being matched with the wrong borrowers, and lenders were reeling them in with the prospect of refinancing. These loans had a foreclosure start rate of 3.39%.

You might be interested in

If there is a substantial increase in bad debts, what might this mean?

QveST [7]

In the case of lending money (for a vehicle or a mortgage for example), this may be an indication of irresponsible lending practices. If there is a substantial increase in bad debts, it means that less creditworthy borrowers (borrowers who are less capable or likely to repay) are obtaining credit too easily.

In the case of bad accounts receivable for a company, there are similar implications, but it also could mean that the inventory that a company is selling is not being sold quickly enough by the retailer. One example could be ToysRUs having overdue accounts due to its partnered toy makers, such as Hasbro. It could be a sign that the demand for the product is not sufficiently high to sell the full amount of purchased inventory, at least when being sold through that retailer.

6 0

3 years ago

When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was ba

insens350 [35]

Complete/Correct Question:

When the company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.

a. reward

b. referent

c. legitimate

d. coercive

e. Expertise

Answer:

D, coercive

Explanation:

Coercive power is the ability of a manager to be able to make an employee/subordinate follow orders by the use of force.

In the above question, Melissa withholds payment after her order of dry goods came in late a third time.

Withholding payment forced the supplier to return to the scheduled arrangement of delivery.

Cheers.

4 0

3 years ago

The XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance betwee

Mamont248 [21]

Answer:

A bureaucracy

Explanation:

Bureaucracy is an organisational structure that is aimed at maintaining uniformity and control in an organisation.

This is achieved through established processes and ways of interaction between staff.

Bureaucracy is characterised by multiple layers and complex processes that makes actions and decisions slow.

This is exemplified in the given scenario where XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance between themselves and subordinates, and promotions are awarded based on technical expertise.

3 0

3 years ago

Which statement is TRUE regarding a 28-year old woman who inherits he grandfather's IRA? A. She may delay distributions until sh

frosja888 [35]

Answer:

C. She may receive distributions over her expected life

Explanation:

The deal that derives that if there is one inherits so IRA could be inherited from the spouse. In this case, the fund would remain in the IRA with no tax outstanding unless the spouse continues for taking the distributions it could be started by age 70 and half.

If we skip the given away option that implies the transfer the IRA in a Beneficiary Distribution Account. Also the distributions arise when there is a depletion over the five years

Since she is 28 years old so the expected life is for another 50 + years or more so it decreases the needed yearly distribution

Therefore the option C is correct

5 0

3 years ago

Boss Enterprises currently sells its products for $ 90 per unit. Management is contemplating a 40% increase in the selling pric

Kazeer [188]

Answer:

break even point in units at the current selling price is $5000 units

Explanation:

given data

Selling price = $ 90 per unit

selling price for next year = 40% increase

Variable costs = 40% of sales revenue

Fixed expenses = $ 270,000 per year

to find out

break even point in units at the current selling price

solution

we know that Contribution margin is

Contribution margin = 1 - Variable cost ratio ..............1

Contribution margin = 1 - 0.40

Contribution margin = 0.60

so Contribution per unit will be

Contribution per unit = Selling price × Contribution margin ratio .............2

Contribution per unit = $90 × 0.60

Contribution per unit = $54 per unit

and

Break even point in units at current price will be

Break even point = $\frac{Fixed cost}{
Contribution per unit}$ ........3

Break even point = $\frac{270000}{
54}$

Break even point = $5000 units

so break even point in units at the current selling price is $5000 units

7 0

3 years ago