Because all other big financial corporations would have failed due to the prospect of systemic risk, aig received bailout money while Lehman Brothers did not.
The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively. The definition of finances according to Finance Box is "The money that people, businesses, or national economies earn and spend." Risk is the potential for bad things to happen, to put it simply. Risk refers to uncertainty on how a certain action will affect or have implications for a human value (such as one's health, well-being, wealth, property, or the environment), frequently focused on unfavourable outcomes.
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A company employing a product development strategy would create a new product targeted to its current customers.
What is New Product Development ?
You can get the people in your division to come up with ideas for new products by following the given things mainly which revolves around reinforcing the novel ideas:
- As employees have direct contact with the customers so they have the better ideas about the customers needs and wants.
- Employees are well aware of the changing trends so they should be encourage to come up with the new and novel ideas for the new products.
- Ideas can come from any where, from any level of the organization so each and every single employee should be motivated to participate in idea generation activities.
The importance of doing customer research is to have a drive for new product development. A research can be effective in pointing out consumer trends and fads, as well as opening a direct customer communication channel that feels prestigious for having its requests valued by a company. Through concrete data of potential customers and new customers, an organization has the ability to meet the actual demand of potential customers and make possible adjustments to the production process.
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Answer:
c. will be able to make new loans up to a maximum of $9.50
Explanation:
If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.
Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.
Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.
Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.
Answer: C. The employees will receive a share of profits as part of the company's ESOP.
Explanation:
The retirees can still get a portion of profits if they are part of an Employee Stock Ownership Plan.
ESOP is a pretty standard thing these days with companies where they reward their employees with shares in the company.
Seeing as the company is making too little to be able to keep paying Retirement benefits, the retirees being owners of Stock can still partake in the earnings that the company makes when they distribute dividends.
