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MrRissso [65]
3 years ago
7

Summit Record Company is negotiating with two banks for a $150,000 loan. Fidelity Bank requires a compensating balance of 26 per

cent, discounts the loan, and wants to be paid back in four quarterly payments. Southwest Bank requires a compensating balance of 13 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. The stated rate for both banks is 12 percent. Compensating balances will be subtracted from the $150,000 in determining the available funds in part a. a-1. Calculate the effective interest rate for Fidelity Bank and Southwest Bank.
Business
1 answer:
BaLLatris [955]3 years ago
8 0

Answer and Explanation:

The computation of the effective interest rate is shown below:

For Fidelity bank

= (2 × 4 × $150,000 × 0.12) ÷ (4 +1 )× ($150,000 - $18,000 - ($150,000 × 26%)

= 30.97%

For southwest bank

= (2 × 12 × $150,000 × 0.12) ÷ (12+1 )× ($150,000 - ($150,000 × 13%)

= 25.46%

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Rank the following types of businesses in order of risk to you, with the highest being number 1: partnership, limited partnershi
kompoz [17]

Answer:

  1. Sole Proprietorship
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Explanation:

Sole Proprietorship is the type of business in which the liability is not limited. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.

Partnership is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.

Limited Partnership is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable to for compensation if their is still any amount left.

In the case of Limited liability company, the liability is limited and the burden of the payment of the liability falls on the company. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.

8 0
3 years ago
Suppose that the government of Ping's country hears of the working conditions and the country seizes the Quality Dragon plant wh
ella [17]

Answer: a. expropriation

Explanation:

Expropriation happens when privately owned property are forcefully taken by government for it to be used by the general public. It is an act of depriving people of their right to property, although expropriation is to the advantage of the general public. In most countries especially in the US expropriation occurs when there is a need to embark on certain infrastructural project such as airports, railroads, etc.

6 0
3 years ago
I want to start a new business. Ideas?
Aleks04 [339]
1.) Watch the news and find out a problem that everyone needs the solution to like a geologist national research business. Or something people don't have a specific catagory for or is in the random stuff cabinet
 
2.) Think about it and see what you can do to make it spectacular. 

3.) Think of a name for it.

4.) Get it pattened (I don't know how to spell it sorry)

5.) Make a card for it and tell people about it. For the child abuse example. (Sprinkle a little dramatic facts  then tell them what you do to help stop that just to get people intrested and wanting to help.)

6.) Then you can take it from there to get more and more people into your business.

To number 5, I forgot what that trick is but it is when you scare someone by something you told them then dis alarming them by telling the good side. You can basically get anyone to do or say yes to anything you want.

And you can use my geologist catagory idea because these days they really need them. Also my mom said that if your in college and you study for the geologist requirments thing ( I don't know what they call them I think coarses)
They pay you even when your not finished college just to work for them and she also stated why else would they randomly add geology in schools now and they make pretty good money!

Sorry for it being so long but I get excited over the smallest thing and I hope I helped you lots!! And Gooood Luck!!!

 
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4 0
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Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supp
rjkz [21]

Answer:

d. Government should use fiscal policy to try to stabilize the economy.

Explanation:

Suggesting that the government should use fiscal policy to try to stabilize the economy generates the greatest amount of disagreement among economists because the process of implementing fiscal policy usually experiences lag as it is being slowed down by the political system (bureaucracy) of checks and balances.

Fiscal policy is the use of government expenditures, revenues and tax policies to influence macroeconomic conditions such as employment, inflation and Aggregate Demand (ADl in a specific country.

The benefits of fiscal policy is that investments, savings and growth is usually influenced in the long-run while it basically influences aggregate demand for goods and services in the short-run.

5 0
2 years ago
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