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Nikolay [14]
3 years ago
5

Because of the adverse selection problem loading...​:

Business
1 answer:
zhannawk [14.2K]3 years ago
7 0
C. lenders will write debt contracts that restrict certain activities of borrowers

In cases like this, the most common is that contracts include restrictive agreements that limit the debtor's behavior, so it is common for him to be asked for periodic financial statements or direct bank deposits to verify the activities and Debtor Performance
You might be interested in
Describe the benefit of using and not using credit. Compare the following scenario and tell why it would be better to use credit
kodGreya [7K]

Answer:

1) So christmas shopping should be optional and most of the things in christmas shopping has no benefits for you, it can’t feed you, it can’t pay your rent, its only for your own entertainment so you shouldn’t use credit. If you use credit on useless things that you may end up not using at all, you could fall in debt. If your gonna go christmas shopping, try to not use credit, if your gonna use credit you have to consider if your gonna be able to pay this back or not. Using cash would be the best way becuase you have a limited amount of cash and you would be more careful spending it. With credit, you would be less considerate due to you having a lot of money all at once and some people fail to consider that they would have to pay back the cash they spent on the credit card. So not shopping at all should put you in the safe.

2) A student loan is usually alot. You should use credit becuase sometimes you don’t have the cash right away. If you graduate college with a degree, you cold get a job in the area you got a degree from. If successful and your careful about your spending, you should be able to pay back your student loan. Going to college and using credit is definitely the better answer here since a lot of jobs that can make you a living and could be used to pay back the student loan require a college degree. If you don;t go to college, sure you don’t have to pay back anything but you would be stuck with a very low income job and sometimes you would be barley making a living. The chances of a better job decreases if you don’t go to college since most jobs are looking for a special degree or at least a college degree.

3) Renting would be the best choice using cash. If your gonna get a house, you have to consider your income. If your income is low, a house is not a old choice. If a house is more expensive, a mortgage would be better since the interest is a one way (most of the time) but a credit has monthly intresest so the interest totaled up on an expensive house would be a lot. On a cheaper house its vice versa. If you have a low income job just rent with cash, renting would be best. Your most likely gonna live in a house forever but if you have to move somewhere, you’d have to sell it and do a bunch of confusing stuff and maybe get in even more debt, if you rent, you can move easily if you have to move somewhere closre to your work.

4) Vacation should be put on a personal loan. If your gonna go on vacation, don’t use credit. A vacation isn’t mandatory, you can go whenever you want. Juse becuase your friends are going to Hawaii, you don’t have to. If you have enough money, sure go for it, but you have to consider what you will do there and how big of a toll this could have your personal savings account. Like for example, lets say a plane ticket cost about 600 dollars. A hotel for a week stay would be about 100 dollars per night and that would be 700 dollars. Lets set aside 200 for entertainment and food. You would be rounding up to 1500 dollars just for a week in Hawaii and that’s just estimated (and probably the least amount).

5) Now for a car it really depends on what your job is and how far your job is. The best option I think would be buying a car with cash (if you have), credit (if you think you can pay it back). So if your job is like 10 miles away, a car would be the best since the subway or busses would take a long time and sometimes could not be consistent. A car would be faster and more reliable. If your job starts at 8am and using public transportation, it takes about an hour to get there. You leave at 7 am and the bus or train arrives 30 minutes late, your late for work and if it happens mulitple times, you could get fired. WIth a car its almost a 100 percent garuntee you wouldn’t be late and it’s faster. You’d keep your job and be able to pay off your Car if credit or just gain your money back if you used cash. If your job is next door, a car is useless but a car offers transportation. If you use like public transportation to go somewhere fun, it is cheap, bit with a car, you’d have to worry about gas prices and you’d have to pay a lot of attention. So it really depends on location.

5 0
3 years ago
Workers in contributing to the common good is
Katarina [22]
A worker's success in contributing to the common good is determined by how well one does his or her job. One way is to pay tax contributions properly. Another way is to be proactive and open-minded with regards to work. Lastly, they must also know how to motivate others.
4 0
3 years ago
Martha and Gordon purchased a home for $175,000 six years ago with a 5.5 percent, 30-year $140,000 mortgage. Their home now has
aliya0001 [1]

Answer:

The correct answer is A that is $76,000

Explanation:

Home equity is the market value of a home owner un-mortgaged interest in the real property, which is the difference among the home's fair market value and the outstanding balance of all liens on the property.

So, it is computed as:

Home Equity = Market value - Outstanding balance

= $210,000 - $134,000

= $76,000

4 0
4 years ago
Most criminals will also face tort civil cases after they are convicted of their crimes.
Bingel [31]
The correct answer is false
6 0
3 years ago
For years Print and Copy, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of it
anzhelika [568]

Answer:

<h2>The answer, in this case,would be option D. given in the answer choice or closed.</h2>

Explanation:

  • A closed system strategy basically signifies a confined and a non transparent business strategy which is characterized by a limited interaction between the concerned company or business organizations and its customers.
  • Under the closed system, the companies or business organizations often stick to their traditional or conventional products and services and are usually not open or receptive to contemporary and recent market trends and patterns adopted by their competitors.
  • In this case, Print and Copy mostly relies on their selling existing product lines which have traditionally yielded higher revenue and consolidated company's market share in the industry in comparison to its market competitors. It also doesn't depend much on product modification based on respective customer feedback and reviews to enhance customer satisfaction and market goodwill or reputation,thereby,exhibiting infrequent and limited business and customer interaction.
4 0
3 years ago
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