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sashaice [31]
2 years ago
8

The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of:.

Business
1 answer:
Firlakuza [10]2 years ago
3 0

A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).

<h3>How is interest decided?</h3>
  • It is based on various risks such as credit risk and maturity risk.
  • Credit risk of a company is shown in its credit rating.
  • The maturity risk increases as the length of time to repayment increases.

The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.

In conclusion, option A is correct.

Find out more on maturity risk at brainly.com/question/24780094.

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Mammoth Foods, a major agricultural corporation, recently purchased MJS Organic Foods Co. MJS was established six years ago and
Alexandra [31]

Incomplete question. The option read;

A) star

B) cash cow

C) dog

D) problem child

E) top gun

Answer:

<u> A) star</u>

Explanation:

Note, the Growth-Share Matrix is designed to assist companies in determining which among their investment portfolio is worth directing resources and capital into and that would be most profitable. It is represented in four quadrants.

Among all the quadrants, the Star quadrant is meant for investments with great future potential. We could recall that there's a positive projection for MJS, it was said that the<em> "fruit market is expected to have a double-digit growth rate over the next decade." </em>Hence,  MJS would most likely be classified as a star.

7 0
3 years ago
The following errors took place in journalizing and posting transactions:
kirill115 [55]

Answer: See explanation

Explanation:

The journal entry to correct the errors is given below:

a. Dr Cash $8400

Cr Account receivable $8400

b. Dr Supplies $2500

Cr Office equipment $2500

Dr Supplies $2500

Cr Account Payable $2500

Note that the first entry that's given in (b) above reverses the incorrect entry. On the other hand, the second entry simply records the correct entry.

6 0
3 years ago
Alzania produces and consumes​ 500,000 tons of cotton during a year. Reports indicate that​ Alzania's neighbor, which also emplo
Rama09 [41]

Answer:

The answer is: E) workers in Alzania have higher productivity due to better education and training.

Explanation:

Alzania and its neighbor both produce cotton and they both have the same amount of workers in the production of cotton. If Alzania is able to produce more cotton (or any type of product) using the same amount of resources (in this case labor) than its neighbor, we can conclude that Alzania does have an absolute advantage in that industry.

This absolute advantage exists because Alzania's workers are more productive than their neighbor's workers.

For example, lets say both countries have 5,000 cotton workers. Alzania produces 100 tons of cotton per worker, while its neighbor only produces 80 tons of cotton per worker. That means Alzania's workers are more productive, and labor usually gains productivity through education or training.

4 0
3 years ago
Discuss why exploring different career options is an important step in choosing the right path in your professional life. What a
AnnyKZ [126]

1) You can get to know what career suits you the most

2) Know about the relevant options you can go for

3) Know what career suits your qualifications

4) Benefits and pros and cons

3 0
3 years ago
Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still off
Maslowich

Answer:

b. value-based pricing

Explanation:

Value based pricing is a pricing strategy to set price of products based on value perceived by the purchaser. To have increased profit margin, business deduces the number of benefit the product provides to consumer. Then it establishes price which takes consideration of manufacturing cost, competitive price and consumer's willingness to pay price for the goods.

In the question  mentioned IKEA not only provide functional benefit for the product but also quality, design, and services at low prices hence it is an instance of value based pricing.

7 0
3 years ago
Read 2 more answers
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