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3 years ago

The term risk, when applied to borrowers, specifically refers to

1 answer:

3 0

D. Lenders are worried that the borrower won't pay them back, and they assess how likely that is to happen by looking at the borrower's income, other assets, credit history, etc.

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Why is there a difference between interest charged and interest earned? A)Banks are non-profit institutions.B)Banks are profit-m

skelet666 [1.2K]

The correct answer is choice b.

Banks are profit-making institutions. Their purpose is to make a profit for their owners or stockholders. They need to charge more interest on the money that they loan out than what they pay on savings accounts so that there is a profit for them.

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2 years ago

A _____ orientation explicitly invokes the concept of value such as when a firm uses a no-haggle pricing structure to make the p

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Answer:

Customer orientation

Explanation:

Customer orientation is described as a strategy to revenues and customer relationships in which employees focus on developing customers encounter their brief-term needs and desires. Here, management and staff align their physical and technical goals with customer satisfaction and retention.

Customer orientation is crucial to the gratification of a customer. Analysis into customer needs and satisfaction can improve your organization's customer orientation.

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3 years ago

A fully inclusive document detailing an organization's mission, organization, objectives, and operations is called a(n) _____

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The one responsible of providing a fully inclusive document that details the mission of the organization, its objectives and their operations is called business. Business are likely to be run by a group of people in which they have a common interest or purpose in order to achieve their goal.

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3 years ago

Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and i

Marianna [84]

Answer:

Santa Corporation

a. The bond's issue price = $901 (PV of all cash inflows).

b. The bond sold at a DISCOUNT. The discount was $99 (equal to total amortization).

c. Bonds payable at the end of:

Year 1 = $931

Year 2 = $964

Explanation:

a) Data and Calculations:

Face value of bond = $1,000

Coupon rate = 6%

Interest payment = Annually on December 31

Bond's maturity period = 3 years

Annual market rate of interest = 10%

N (# of periods) 3

I/Y (Interest per year) 10

PMT (Periodic Payment) 60

FV (Future Value) 1000

Results

PV = $900.53 = $901

Sum of all periodic payments $180.00

Total Interest $279.47

Schedule

Date Cash Paid Interest Expense Amortization Balance

January 1, Year 1 $901

December 31, Year 1 $60 $90 $30 931

December 31, Year 2 60 93 33 964

December 31, Year 3 60 96 36 1,000

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2 years ago

When plumbers from a local union stopped working during negotiations, management hired replacement plumbers so the effects on th

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When plumbers from a local union stopped working during negotiations, management hired replacement plumbers so the effects on their business would be lessened. These replacement plumbers are called strikebreakers.

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3 years ago