Answer:
A Banker's Analysis of an Automotive Company for Loan
Most important consideration in determining grant of loan:
c. The company has a large amount of interest payments related to other outstanding loans.
Explanation:
The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged. To grant a bank loan will have added leverage risk.
In analyzing the request for a loan, a bank should consider the borrowing company's credit history. With so much in interest payments, the company has already borrowed heavily. The banker should consider the application of the past debts. Were they used in investments or for working capital purposes or to repay liabilities and shareholders.
The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above. In reviewing the cash flow history, the projections of the company should be tested for sustainability. "Has the company been meeting its past projections?" is a relevant question to understand.#
Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged. Are there unencumbered assets that can serve as collateral in case of default?
Answer:
An s corporation or a limited liability company, but not a corporation.
Explanation:
Answer:
Non-compete
Explanation:
A non-compete agreement is when an emoloyee agrees not to enter into or start a similar profession in competition against her employer.
Majority of agreements stipulated the length of time an employee isn't allowed to enter into or start a similar profession in competition against her employer.
I hope my answer helps you
Answer:
-0.2; less elastic to price
Explanation:
Given that,
Percentage change in the price of gasoline = 5%
Percentage change in the quantity demanded = 1%
Therefore, the price elasticity of demand is as follows:
= Percentage change in the quantity demanded ÷ Percentage change in the price of gasoline
= (-1) ÷ 5
= -0.2
Hence, the demand for gasoline is less elastic to price because higher percentage change in prices will lead to lower percentage change in the quantity demanded.
