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3 years ago

Which of the following is a potential disadvantage when considering long-term loans as an option for raising capital?

Business

1 answer:

12345 [234]3 years ago

6 0

Answer:

A potential disadvantage when considering long-term loans as an option for raising capital is:

D. They require diluting ownership in organizations.

Explanation:

This potential disadvantage becomes a reality when the long-term loans are converted into shares. At this point, the ownership in the organization is diluted. Ownership dilution reduces the percentage of the ownership of shares in the entity. The investment becomes less attractive to the original owners since more owners are brought on board.

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Most economists believe that in the long run, changes in the money supply Group of answer choices affect nominal but not real va

Ymorist [56]

Answer:

affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.

Explanation:

This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:

MV = PQ

M = quantity of money
V = velocity of money
P = price level
Q = quantity of goods

Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:

the velocity of money has to be constant (AND IT IS NOT CONSTANT)
real output is independent on money supply (NOT TRUE)
causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)

5 0

3 years ago

You deposit $100 in an account that pays 6 percent annual interest, compounded quarterly. What will your deposit grow to in 3 ye

Burka [1]

Answer:

$119.56

Explanation:

We will use compound interest formula to solve this problem.

The formula is:

$F=P(1+r)^t$

Where

F is the future value

P is the present amount

r is the rate of interest per period

t is the number of periods

Here,

F is the value we want, after 3 years

P is the present amount, $100

r is the rate of interest per quarter (per period)

Given r = 6% annually, so that would make:

6%/4 = 1.5% per quarter, or 1.5/100 = 0.015

Also, t is the number of quarters in 3 years, that would be 4*3 = 12

Now, substituting, we get our answer:

$F=P(1+r)^t\\F=100(1+0.015)^{12}\\F=100(1.015)^{12}\\F=119.56$

The first answer choice is right, $119.56

3 0

3 years ago

La belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at

sergejj [24]

<span> psychological pricing</span>

8 0

3 years ago

Read 2 more answers

1 + 1 = ?<br> First to answer gets brainliest XD

Igoryamba

2

Hope this helps

-Zayn Malik 1795

3 0

3 years ago

Read 2 more answers

Payton Inc. r reports in its 2017 annual report 10-K, sales of $8,180 million and cost of goods sold of $3,272 million. For next

jek_recluse [69]

Answer:

C. $3,454 million

Explanation:

Calculation to determine what the Projected cost of goods sold for 2018 will be:

2018 Projected cost of goods sold = [(8,180*1.03)*(3,272/8,180)+1%)]

2018 Projected cost of goods sold = (8,425 * (0.40+1%)

2018 Projected cost of goods sold= 3,454 million

Therefore Projected cost of goods sold for 2018 will be: $3,454 million

5 0

2 years ago