An increase in current liabilities decreases net working capital, thereby increases the risk of technical insolvency. Thus the option (B) is correct.
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What is Working Capital?</h3>
Working capital refers to the current assets minus current liability. It tells about company's day to day operation and indicates about financial capacity to pay its debt within a year.
Increase in the current liabilities implies that there is a decrease in working capital. Therefore, it implies that company has increased its debt which can result in the risk insolvency.
Thus the option (B) is correct.
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A (c) credit union is a group of people who agree to save their money together and to make loans to each other at a relatively low rate of interest.
Answer:
Forward market.
Explanation:
Transaction exposure represent the uncertatinity level where the business is involved in the trade that to be done on the international level. It is the risk where the currency exchange rate fluctuates when the financial obligation is undertaken by the firm
So as per the given situation, it engaged in all the things except the forward market because in all other things it is engaged by the MNC
Therefore the first option is correct
Answer:
The interest rate is 6%
Explanation:
The computation of the interest rate is shown below:
Interest rate is
= Interest paid for the first year ÷ Sale price of the property
where,
Interest paid for the first year is $12,600
And, the sale price of the property is $210,000
Now place the values to the above formula
So, the interest rate is
= $12,600 ÷ $210,000
= 6%
Hence, the interest rate is 6%
Answer: Scarcity is the foundation of the essential problem of economics: the allocation of limited means to fulfill unlimited wants and needs. Even free natural resources can become scarce if costs arise in obtaining or consuming them, or if consumer demand for previously unwanted resources increases due to changing preferences or newly discovered uses.
Explanation: