The reasons why collateral is important to a borrower are:
- It serves as borrower's credit worthiness .
- Collateral minimizes the risk for lenders.
<h3>What is Collateral?</h3>
Collateral can be regarded as item of value that is been used to secure a loan.
In a case whereby a borrower defaults on the loan,it is possible for lender to seize the collateral and sell it to recoup its losses. Banks require collateral on certain types of loans.
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Answer:
The type of segmentation Veda Inc. is using is called Psychographic segmentation.
Explanation:
Market segmentation is the process of dividing a target market into smaller, more defined categories. It makes it easier to focus marketing efforts and resources on reaching the most valuable audiences and achieving business goals.
Psychographic segmentation categorizes audiences and customers by factors that relate to their personalities and characteristics. Alo, targets women who want makeup that will last at least ten hours after application. This covers a niche market of women who are looking for makeup with anti-ageing properties.
Answer:
The correct answer is option a.
Explanation:
The price elasticity of demand shows the responsiveness of quantity demanded to change in price. It is measured by the ratio of proportionate change in quantity demanded and proportionate change in price.
Unit price elastic means that the price elasticity of the good is 1. This implies that the percentage change in quantity demanded must be equal to the percentage change in price.
Answer:
"Underwriting
" is the correct answer.
Explanation:
- Underwriting seems to be the mechanism whereby an entity or organization assumes an investment burden at a cost, is indeed the mechanism for a mortgage company to determine the danger of extending credit to customers.
- The above word stemmed from the custom of making increasing uncertainty-taker put their names below the total degree of responsibility individuals were inclined to acknowledge for something like a defined bonus.
So that the above is the appropriate answer.
Answer:
A student neglects to do homework while chatting with friends.
Explanation:
