Answer:
D
Explanation:
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Counterparty risk is the potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill its obligations under any contract.
Given an incomplete sentence related to potential exposure of the contract.
We are required to fill the blank with the appropriate word which means that the potential exposure that any individual bears that the second party to any financial contract will not be able to fulfill its obligations under a contract.
The appropriate word is counterparty risk.
Counterparty risk is basically the probability that the other party in an investment, credit,or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.
Hence counterparty risk is the potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill its obligations under any contract.
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The coat of Capital is calculated by taking the weighted average cost of all sources of Capital.Given that if the cost of Debt is the lowest choice among financing options then it will definitely reduce our cost of capital. Therefore the above statement is true because an Increase in low-cost options will also reduce a firm overall cost of capital.
A liability is an obligation by one party, the debtor, to require payment of money or other agreed-upon value to another party, the creditor. An obligation is a deferred payment or series of payments, distinguished from an outright purchase. Debts may be owed by sovereign states or countries, local governments, corporations, or individuals.
Commercial debt is generally subject to contractual terms regarding the amount and timing of principal and interest repayments[1]. Loans, bonds, bonds, and mortgages are all types of liabilities. In financial accounting, liabilities are a type of financial transaction rather than equity. The obligation is a debt to a society of criminals who owe them a debt of gratitude that cannot pay their debt.
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Answer:
5. Emma may not be as dedicated to the firm as other permanent employees
Explanation:
Logistics as a business activity is concerned with efficient movement of goods with least pilferage and spoilage and at the same time, as promptly as possible.
Handling customer queries requires utmost politeness, patience and humility and such a function is very sensitive since a small error or wrong attitude can drastically affect customer preferences and business sales.
In the given case, Ali's argument can only be strengthened by the fact that Emma is a temporary employee and it cannot be expected of her to discharge her duties with the same dedication as a permanent employee would.
Temporary employees know their term of employment beyond which they most likely seek job elsewhere. Whereas, a permanent employee would usually be more dedicated since he would have better sense of belongingness with the company.
