Answer:
Increase interest deductions for the limited partners.
Explanation:
In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.
Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.
When a loan is refinanced at the same interest rate the borrower pays more interest.
For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.
When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.
So the general partner aims to increase the amount of interest paid.
Answe and Explanation:
For banks and other financial institutions, the discrepancy between the short-term maturities of their deposits and the long-term maturities of their assets is referred to as _a maturity mismatch___________.
Answer:
D. The growth of Mini - Multinationals
Explanation:
Mini-multinationals are companies or organisations that carry out their business in two or more countries but are still within the definition of small and medium sized organisations.
Initially before the advent of the computer and the accelerated advancement of globalisation only standardized multinationals based on large firms and corporations were able to carry out business across several countries. However, globalisation as well as the rapid advancement of information technology has made tools of business available such that even small or medium sized firms can become multinationals.
For instance, the availability of an e-market and fast delivery methods makes it possible for a local shoe seller to transact businesses across two or more countries. This is defined as a mini-multinational
