1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill115 [55]
3 years ago
7

Why do lenders require collateral for a secured loan? (10 points)

Business
1 answer:
Vanyuwa [196]3 years ago
6 0

Answer:

A) It reduces risk to the lender

Explanation:

Collateral refers to a valuable asset that a borrower offers to the lender to secure a loan. Typically, the collateral will have a higher market value than the loan amount. Asset mostly used as collateral include homes, properties, and motor vehicles. The lender will keep custody of the title documents until the borrower repays full amount borrowed.

Offering collateral for a loan indicates the borrower's willingness to repay the loan. The lender is assured of recovering their money. If the borrower defaults, the lender will dispose of the collateral to recover their money. This reduces the lender's risk.

You might be interested in
Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
Molodets [167]

Answer:

9,650 Units

Explanation:

The total unit transfer were 7,900 then we have to add the total units that are in Work in Process, which are +2.400+10.500-7.900 = 5.000, of that we have an advance of 35% of conversion cost, so we have 1.750 Units , Total Units = 7.900 + 1.750 = 9.650

  Conversion  

   

"Units transferred to the next department 7.900  

Ending work in process:    

 Conversion:    

 Rest Of Units                            5.000  

Complete to conversion costs End  35%  1.750  

  Equivalent units of production   9.650  

6 0
3 years ago
Virginia Enterprises makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30
Mademuasel [1]

Answer:

$18,000

Explanation:

Prepare an Accounts Payables Budget

The firm's budgeted payables balance on June is $18,000

4 0
3 years ago
Which highest and best use criterion would require an appraiser to consider the frontage of the site?
Bond [772]

physically possible is the highest and best use criterion that would require an appraiser to consider the frontage of the site.

Criterion is usually a plural noun that refers to a criterion by which a judgment can be made. Its singular form is the norm, but evidence shows that the norm is often used in both singular and plural forms, as are data and agenda, and their lesser-used singular forms datum and agenda. I'm here.

For example, SAT score is the predictor and his GPA in college is the criterion. Regression analysis confirms that there appears to be a strong correlation between SAT scores and his GPA in college. However, a high SAT score does not necessarily mean a high GPA in college.

Learn more about criterion here: brainly.com/question/17192140

#SPJ4

8 0
1 year ago
the biggest challenge facing the growth of new franchises is: A) market saturation B)competition from independent entrepreneurs
Furkat [3]

Answer:

(A) market saturation

Explanation:

A franchisee starts a new franchise by entering into a franchising agreement with a franchiser to use its brand name and sell its products. The biggest challenge faced by this new franchise is market saturation.

This occurs because<u> the presence of other similar businesses, whether franchises or independently owned businesses in the market, creates lots of competition for the new franchise.</u>

6 0
3 years ago
Which margin size is most appropriate for a business card?
yan [13]
3.5 inches because the normal business card is 3.5 in × 2 in 
3 0
4 years ago
Read 2 more answers
Other questions:
  • Auditors must gather evidence, and obtain documentation around identified risks. A risk in the purchasing process is that a purc
    12·1 answer
  • How many CTSOs are there?
    14·1 answer
  • Marcelino Co.’s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are
    12·1 answer
  • PLZ HELP THIS IS DUE IN A FEW HOURS!
    5·1 answer
  • When you apply for credit, the lender will review the "Four C's" to decide whether you are a good credit risk, or in other words
    7·1 answer
  • A computer manufacturing company allows customers to shop in their preferred way. For example, they can gather information onlin
    13·2 answers
  • Carl sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. both ha
    7·1 answer
  • Marino company is currently selling 10,000 units of its product per month at $10.40 per unit for total monthly sales of $104,000
    10·1 answer
  • Before beginning to prepare for her upcoming presentation, Kay contacts the venue to determine what technology will be available
    11·1 answer
  • emily purchased a building to store inventory for her business. the purchase price was $760,000. emily also paid legal fees of $
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!