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kirill115 [55]
2 years ago
7

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

Business
1 answer:
Vanyuwa [196]2 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.

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A market order has: a. Price uncertainty but not execution uncertainty. b. Both price uncertainty and execution uncertainty. c.
Ipatiy [6.2K]

Answer:

The correct answer is letter "A": Price uncertainty but not execution uncertainty.

Explanation:

When talking about trading orders, a market order is executed whether to buy or sell a security at market price. The market order does not follow the security's price at the bid or ask, it usually follows the last price at which the security was sold. Thus, that <em>price is always uncertain.</em>  

The benefit of market order relies on the execution. Traders will not have to wait until another trader is willing to buy or sell at their desired level. The <em>market order will execute the order almost automatically</em> at the price the market has available.

6 0
3 years ago
Complete the following sentence about margins and alignment with the best choices. Business letters and memos usually have margi
Dovator [93]

Answer:

The answer is 1 to 1 1/4

Explanation:

The side, top and bottom limits are supposed to be 1 to 1 1/4 inches means the general default settings in programs such as Microsoft Word. One-page letters and memos should be vertically centered. Business letter writing margins should be about 1" all around.

4 0
3 years ago
While traveling on a commercial bus line, a passenger was injured when some luggage fell on him. As required by applicable state
Nonamiya [84]

Answer: See explanation

Explanation:

In a situation whereby the attorney of the passenger tried resolving the dispute in good faith, then the bus company must be ordered by the court to produce the report as well as the payment of reasonable cost that was incurred in making the motion.

It should however be noted that such cost may not be awarded when the movant had filed the motion before obtaining the disclosure in good faith. Also, the cost with be given when the nondisclosure response of the opposing party was justified.

7 0
3 years ago
Wanda takes $3,000 from her savings account that pays 5 percent interest per year and uses the funds to purchase a computer for
Salsk061 [2.6K]

Answer:

$1,150

Explanation:

Implicit rental rate refers to the cost that a company incurred by spending money as opposed to what that money could earn if it were invested in something else. Therefore since in a year the computer was worth $1000 less and Wanda also lost out on the 5% that the savings account would have generated which would be $150. Then her total cost is that of $1,150

7 0
3 years ago
Company ABC reported the following: 1. Net Income: $110,000 2. Return on Sales (Net Income/Sales): 3.56% 3. Gross Profit Percent
Sergeeva-Olga [200]

Answer:

$2,266,123.60

Explanation:

As it is given

Return on sales = Net income ÷ Sales

3.56% = $110,000 ÷ Sales

So, the sales is  $3,089,887.64

Now the Gross Profit percentage is

Gross Profit percentage = Gross profit ÷ Sales

26.66% = Gross profit ÷ $3,089,887.64

So, the gross profit

= $823,764.044

Now the cost of goods sold is

= Sales - gross profit

=  $3,089,887.64 - $823,764.044

= $2,266,123.60

8 0
3 years ago
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