Answer:
d) quantity of credit for loans
Explanation:
As more quantity is available being for a decrease in required reserve ratio or emission of currency It will increase the bank's money available for loans to companies and families. If the quantity of money decrease it will reduce the amount for loans. Thus,this vaiable are inextricably intertwined.
The quantity of money in an economy and the quantity of credit for loans are closely linked. An increase in the money supply usually leads to an increase in credit availability. Conversely, financial stress can result in a decrease in available credit.
Explanation:The quantity of money in an economy and the quantity of credit for loans are inextricably intertwined. When there is an increase in the quantity of money available in an economy, it typically leads to an increase in the quantity of credit for loans. This is because banks have more funds to lend out and individuals and businesses have more access to borrowing.
For example, during times of economic expansion, the central bank may increase the money supply by lowering interest rates or buying government securities. This increase in money supply encourages banks to provide more loans, which then circulates more money in the economy.
On the other hand, during times of economic downturn or financial stress, banks may become more cautious in providing loans, leading to a decrease in the quantity of credit available. This can have negative impacts on various sectors of the economy dependent on borrowed money.
In recent times, approximately the top ________ percent of households made more than $51,000..
Answer:
In recent times, approximately the top 50% of households made more than $51000
Explanation:
Fabian was finding it difficult to acquire a credit card that would suit his needs. He checked his credit report to determine why he was facing these difficulties. What would have had a negative impact on Fabian’s credit score and brought it down?
A.
paying bills on time
B.
paying mortgages installments on time
C.
not having any overdrafts
D.
irregular and missed loan payments
E.
purchasing multiple household items
Answer:
D.
irregular and missed loan payments
Explanation:
Missing and missed loan payments cause one to have a poor credit score. A credit score is a numerical representation of an individual or institution's debt worthiness. A high credit shows that the individual is a trusted borrower.
A high credit score comes about if one has a history is repaying his or her obligation promptly. The individual does not skip on their regular installments repayment. Lending institutions use borrowing history to predict how a borrower is likely to behave if credit is advanced to them. A high credit score shows that the borrower is unlikely to default to his repayment.
Answer:
D.
irregular and missed loan payments
Explanation:
For most commercial property types, lease lengths can vary considerably. Therefore, both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms. Owners may prefer longer leases for all of the following reasons EXCEPT:
Answer:
Gain flexibility
Explanation:
Flexibility in business refers to continually trying to become more efficient and able to generate a higher profit.
When you sign longer contracts, you know how much money you are going to pay (the lessee) and receive (the lessor) in advance for several years. That reduces uncertainty and risks, but it also reduces (or almost eliminates) the possibility of higher returns since your investment becomes inflexible.
Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Answer:
Save additional $17,500 or reduce disbursement by that much
Explanation:
The cash budget of the company would be as follows:
May 31 owed to be bank ($15,000)
June 1 opening cash balance $12,000
June expected cash receipts $30,000
June expected cash disbursement ($34,500)
Net cash flow at the end of June (excluding bank): $7,500
Net cash flow (including bank): $7,500 - $15,000 = ($7,500)
Thus, the company will be owing the bank $7,500 by the end of June.
To maintain the minimum $10,000 positive balance with the bank, the company would need to payback the $7,500 which will be owed by the end of June, and make additional deposit of $10,000.
Total deposit required = $7,500 + $10,000 = $17,500.
This can be achieved by reducing expected disbursement by $17,500 or via other means.
If there is a structural deficit at full employment then G is still _________.
A. contractionary
B. neutral
C. expansionary
D. none of the above
Answer:
C. expansionary
Explanation:
If there is a structural deficit at full employment then Government Spending (G) is still expansionary. This is when the government expands the money supply within the economy, in order to either increase spending or cut taxes. This is done in order to get more money into the hands of consumers and business to spend and help move the wheels of the economy.
Many conservative consumer advocates said you should not pay more than 25% of your TAKE-HOME PAY on a mortgage payment
A. True
B. False
Answer:
True
Explanation:
There is a general consensus that one has to be very conservative and avoid spending more than 35 percent of pretax income on home insurance payment, property tax, and mortgage. However the conservative model clearly suggests that mortgage payment should not exceed 25 percent of take-home pay and any mortgage loan should not exceed a 15 year tenure.
On December 31, 2005, Grey, Inc. owned 90% of Winn Corp., a consolidated subsidiary, and 20% of Carr Corp., an investee in which Grey cannot exercise significant influence. On the same date, Grey had receivables of $300,000 from Winn and $200,000 from Carr. In its December 31, 2005, consolidated balance sheet, Grey should report accounts receivable from affiliates of:______a) $500,000b) $340,000c) $230,000d) $200,000
Answer:
d) 200,000
Explanation:
Grey Inc. owned 90% of Winn Corp, which is classified as subsidiary and is accounted for by consolidating the financial statements of the subsidiary.
Grey Inc. owned 20% of Carr Corp. and does not have significant influence so indicating that the investment is supposed to be classified at fair value.
Consolidation Method of accounting involves adding all assets and liabilities of the subsidiary in the financial statements of Parent Company. However, inter company balances (receivable / payable) are eliminated and thus are not included in consolidated financial statements to avoid double counting, thus the balance receivable from Winn Corp, is not included in the consolidated balance sheet of Grey Inc.
Change in fair value of Carr Corp is taken either in profit / loss or directly taken to statement of changes in equity depending on the policy of Grey Inc. However any receivable / payable between shareholder and the invested company appears as it is in the balance sheet, therefore the balance of $200,000 receivable from Carr Corp shall appear as receivable in consolidated balance sheet of Grey Inc.
Final answer:
Grey, Inc. should eliminate the receivables from the consolidated subsidiary Winn Corp. in the consolidated balance sheet but include the receivables from Carr Corp., resulting in accounts receivable from affiliates amounting to $200,000.
Explanation:
When preparing consolidated financial statements, a parent company must eliminate any intercompany transactions and balances with its consolidated subsidiaries. Since Grey, Inc. owns 90% of Winn Corp., which is considered a consolidated subsidiary, any receivables from Winn should be eliminated in the consolidated balance sheet. However, the 20% ownership of Carr Corp. indicates an investment without significant influence, thus financial reporting for this stake is treated differently, typically using the cost or equity method, and should not be eliminated. Therefore, Grey should report the $200,000 from Carr as accounts receivable in its consolidated balance sheet.
Consequently, the correct amount of accounts receivable from affiliates that Grey should report is $200,000.
Which of the following journal entries is created to adjust for a deferral?
A. Unearned Revenue Revenue
B. Interest Expense Interest Payable
C. Cash Revenue
D. Accounts Receivable Unearned Revenue
Answer:
The correct answer is A
Explanation:
Deferral is the term which is defined or described as the delay or defer in recognizing the certain expenses or revenues on the income statement of the business, until a later period or time.
So, the account which is created while recording the journal entries in order to adjust the deferral, is the unearned revenue, which means that the is the amount of revenue, which is received form customer for which work as not been perfomed yet.
Unearned Revenue Revenue is the correct journal entry to adjust for a deferral in accounting, which happens when payment is received for goods or services not yet provided. This process decreases the liability and increases revenue.
Explanation:The correct journal entry to adjust for a deferral is Unearned Revenue Revenue (option A). A deferral happens when payment is received for goods or services not yet provided, like a rent paid in advance or magazine subscription. This concept is used in accrual accounting, and 'Unearned Revenue' is considered a liability because it's an obligation to provide a service or product in the future. Once the service or product is delivered, the liability decreases and revenue increases. The journal entry to represent this process is to debit (decrease) Unearned Revenue and credit (increase) Revenue.
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Imagine that a food critic visits your restaurant and writes a positive review that was then published in a magazine. This is an example of.
Answer:
Public relations
Explanation:
Public relations -
It is the method to spread within an organisation or in society , is referred to as public relations.
The act can be done by an individual or organisation , expect in that particular field .
This method is adapted in order to freely advertise or publicize the goods or service .
Hence, from the given scenario of the question,
the correct term is public relations.
Pearland, Inc. has 8,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 13% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred stockholders?
A. $34,615
B. $55,385
C. $7,200
D. $93,600
Answer:
D. $93,600
Explanation:
In order to find the total dividends paid out to the preferred stockholders we need to find the dividend per share and then multiply it by 8,000 as there are 8,000 preferred shares.
Dividend per share =
par value * dividend rate
90*0.13=11.7
Total amount paid to stock holders=
Dividend per share * no of shares
11.7*8,000=93,600
__________________ is the income (wages and other ""earned"" and ""un-earned"") that Households receive before income taxes are taken out..
Answer:
Personal Income
Explanation:
Personal income represents the totality of income an household or an individual receives. It can also be called the collective compensation an individual receives and this amount is subject to tax.
The component of an household's presonal income include income for various sources. Earned sources include; wages, salaries or any other compensation from either self-employment or employment with another company or oganisation. Un-earned income include distributions and interests and dividends most received from investments, income from rental of real estates and any profit received as a result of being part of a business.
Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should reflect:
A.) The relative sizes of the total book capitalizations for each kind of security that the firm issues.
B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.
C.) Only the market after-tax cost of debt.
D.) Only the market after-tax cost of equity
Answer:
B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.
Explanation:
WACC is the weighted average cost of capital. It is used as the discount rate when evaluate projects whose risk are similar to company's risk. Calculation of WACC uses relative market values of common equity, preferred stock and debt to calculate each proportion. Cost of equity, cost of preferred stock and aftertax cost of debt are also used. This makes choice B correct.
Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers "make a market" by:_______
A) buying stocks for inventory when investors want to sell.
B) selling stocks from inventory when investors want to buy.
C) doing both of the above.
D) doing neither of the above.
Answer:
(C) doing both of the above
Explanation:
When dealers "make a market", they do so by providing liquidity in a market that may lack such. Liquidity measures the ease with which participants can buy and sell in a market. Thus, by making a market, a dealer buys stocks for inventory when investors want to sell, and sells stocks from inventory when investors want to buy.
In terms of strategy making, what is the difference between a one-business company and a diversified company?A. The first uses a business-level strategy, while the second uses a set of business strategies and a corporate strategy.B. The first uses a business-level strategy, while the second uses a corporate-wide strategy.C. The first uses an operating strategy, while the second uses a business-line strategy.D. The first uses a functional strategy, while the second uses a business-line strategy.E. The first uses a single-line strategy, while the second uses a multi-line strategy.
Answer:
A.
Explanation:
Based on the information provided within the question it can be said that the main difference between them is that the first uses a business-level strategy, while the second uses a set of business strategies and a corporate strategy. A Business-Level strategy focuses on attaining and satisfying the customers by offering them the goods and services that they need/want in order to increase profits. While a Corporate Strategy focuses on the corporate overall goals and direction that how those goals will be achieved, usually using various other strategies for each goal.
Which of the following statements is false?
a) BPM is a task-oriented approach.
b) BPM can help companies reduce costs.
c) BPM can help companies increase revenue.
d) BPM can improve customer satisfaction.
e) BPM can improve organizational flexibility
Answer:
The correct answer is a) BPM is a task-oriented approach.
Explanation:
Business process management is making an organization’s workflow more effective, more efficient and more capable of adapting to an ever changing environment. In Simple words it means helping a business reach its goals and ojectives.
From the defination it is clear that it is an on going process. This management of making company better and more profitable is endless. So BPM is not a task oriented approach but ungoing function as their is always a room for improvement.
A customer purchases 1 XYZ July 50 call @ 5. The customer will breakeven at which of the following market prices for the underlying security?[A] 5[B] 45[C] 50[D] 55
Answer:
(D) 55
Explanation:
For the purchase of 1 XYZ July 50 call @ 5, the customer has already paid a call premium of $5 (indicated by the @5).
The exercise price of the call is $50, meaning the call option gives the customer the right to buy XYZ at $50.
Thus, the customer will break even when the market price of XYZ = the exercise price + the premium
= 50 + 5 = 55.
At that market price ($55), the customer would pay a total of $5 premium, plus an exercise price of $50, which equals $55 (same as the market price.
A company’s before tax operating income is $1,000.
With a 35% tax rate, what is the company’s after-tax operating income?
Answer:
after-tax operating income = $650
Explanation:
given data
before tax operating income = $1,000
tax rate = 35%
to find out
after-tax operating income
solution
we get here after-tax operating income that is express as
after-tax operating income = before tax operating income ( 1 - tax rate ) ...............1
put here value we get
after-tax operating income = $1000 × ( 1 - 35% )
after-tax operating income = $1000 × ( 1 - 0.35 )
after-tax operating income = $1000 × 0.65
after-tax operating income = $650
As strategic planner of the newly formed Business Technology Student Club, you are tasked with coming up with a goal to improve members' professional development. How would you employ the 'SMART goals' idea to ensure the members' professional development?
Answer:
Define the SMART goals to the club.
Explanation:
A goal is a preferred thought or idea for the future.
Step 1
Set Specific (S) target area for improvement. For example improving their ICT skills.
Step 2
Goal should be Measurable (M)
Using the ICT skills improvement goal for example, I would determine how to measure their performance. Could be through the quality or number of skills.
Step 3
Are the goals achievable or Attainable.(A)
By asking questions such as; would the resources be available to attain the set goals? or would it be impossible?
For example, would it be impossible for students to learn web design due to lack of sufficient computers.
Step 4
Are the goals realistic? (R)
What impact would reaching the goals have on the student? Is the goal reachable within the time?, these are some the questions to be asked.
Step 5
Is the goal Time bound?
Our SMART Goal should have a start and finish date. This is done for example by setting a deadline to achieve the goal of improving the ICT skills of students in the club. Let's say 6 months or 1 year.
Foreign Direct Investment means:________a. buying or creating facilities in another country for producing in local markets. b. buying or creating facilities in home country. c. buying facilities based in home country for the purpose of exporting products. d. buying facilities in home country for the sole purpose of importing essential goods.
Answer:
a. buying or creating facilities in another country for producing in local markets.
Explanation:
Foreign direct investments refer to establishments or acquisition of a business in a foreign country. The individual or firm involved in foreign direct investment is a citizen of a local country but starts a business in a different country.
Foreign direct investments are different from portfolio investments. In Portfolio investment, the investor buys securities in a foreign market, but foreign direct investment involves setting up a business or purchasing one in another country.
You have two equal investments that always have exactly opposite returns. how will your total value of both investments vary over time.a.it will go upb.it will go downc.it will stay the same
Answer:
c.it will stay the same
Explanation:
Without any other information available, and assuming that opposite returns means that when one investment gain X USD, the second invest loss -X USD, over the time the total value both investments remain the same. The value of investments, in this case, is the total portfolio value. Nevertheless, if opposite returns means that the gains are collected even though both returns are created because of divergent causes, then the correct answer would A (it will go up) and not C.
If a company is considering the purchase of a parcel of land that was acquired by the seller for $86,000 is offered for sale at $152,000, is assessed for tax purposes at $96,000, is considered by the purchaser as easily being worth $142,000, and is purchased for $139,000, the land should be recorded in
the purchaser's books at:__________.
Answer:
$139,000
Explanation:
The value of an asset is recorded in the book as the price at which it was acquired. The cost of the land will be recorded as the price which it was paid for or the purchase price.
In asset acquisitions, the value of land includes the purchase price plus all other relevant expenses such as legal fees, commissions, and survey fees. Discounts received are deducted from the purchase price before the price is recorded in the books. An organization will value and depreciate its assets based on the price it purchased them.
An issuer has filed a registration statement in the state proposing to offer 500,000 shares in a combined primary and secondary distribution, consisting of 300,000 newly issued shares and another 200,000 shares being offered by the officers of the firm. Under Uniform State Law, the:_______.
a. 500,000 shares being sold is an issuer transaction.
b. 300,000 shares being sold is an issuer transaction and the 200,000 shares being sold is a non-issuer transaction.
c. 300,000 shares being sold is a non-issuer transaction and the 200,000 shares being sold is an issuer transaction.
d. 500,000 shares being sold is a non-issuer transaction.
Answer:
b. 300,000 shares being sold is an issuer transaction and the 200,000 shares being sold is a non-issuer transaction.
Explanation:
A non-issuer transaction is a transaction that does not directly benefit an issuer or it was not directly executed to benefit an issuer.
According to the Uniform State Law, an entity involved in the sales of certificates of interest, leases, mining titles among others is officially exempted from being labelled as an issuer. Hence, the entity (officers of the firm) in the question are non-issuer brokers.
Specifically, when the sales of stock are carried out by someone or an individual who is not a registered stockbroker, that individual officially becomes what is called 'a non-issuer broker-dealer'. The implication is that such a transaction is to be exempted from the registration requirements of the Security Exchange Commission.
In this question, since the issuer newly issued 300,000 shares while the remaining 200,000 in the proposed combination was offered by Officers of the firm - non-issuer broker-dealers. The Law states that it must be separated to show that 300,000 shares are sold in an issuer transaction (Primary) directly involving an official issuer while 200,000 shares are sold in a non-issuer transaction (Secondary).
Sodiaal is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. Before it purchased a controlling stake in Yoplait S.A.S. in 2011, General Mills paid Sodiaal for the right to sell Yoplait yogurt in the United States. This is an example of__________.A. licensing.B. a strategic alliance.C. exporting.D. a global joint venture.E. direct investment.
Answer: Option A
Explanation: In simple words, licensing refers to an official permit or authorization to do, use, or own something . A license may be given as a component of an agreement between certain groups by a party to some other party. A short-term license definition is "permission to use licensed content.
In general, regulators can issue a license to permit an operation that would otherwise be prohibited. It may involve a charge to be charged or a skill to be proven.
The provision may also serve to protect the authorities aware of a type of activity and provide them with the opportunity to establish terms and restrictions.
Eric has been hired by Brooks Automotive to asses whether the company should air television commercials only in the local market. He is planning a study of the relationship between local television commercials and the sales of new vehicles. Which of the following is the best way for Eric to define his research problem?
Answer:
Determine how effective television commercials are in convincing viewers to purchase new vehicles
Explanation:
By determining how effective TV commercials are to persuade the customers to purchase the vehicles will help Eric study the relationship between local television commercials and the sales of new vehicles.
This will ultimately help him develop an effective marketing plan to advertise vehicles via TV commercial to boost the sales
Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. The father and son, being the owners of the business concern, decide about the important matters and all the rest of the functions like the product, finance, marketing, and personnel are carried out by the department heads who have to act as per the instruction and orders of both of them. Which of the following is true about Tradus?
a. It has a very tall organizational structure.
b. The degree of formalization is very low in the organization.
c. It has a centralized system of decision making.
d. It has a narrow span of control.
e. It has a matrix organizational structure.
Answer:
c. It has a centralized system of decision making.
Explanation:
Tradus operates a centralized system management as decisions are taken at the apex of the organisational hierarchy. He the CEO or chairman of the board takes up decision making roles from units and departments.
Final answer:
Tradus, the boutique operated by Ross and Tony, clearly employs a centralized system of decision making, where the owners make all significant decisions and the department heads execute these directives.
Explanation:
The business structure described for Tradus, a boutique opened by Ross and Tony in Chicago, provides clear insight into the operational dynamics of their establishment. Given that all major decisions are made by the owners, Ross and Tony, and all department heads act based on their directives, it's evident that Tradus operates under a centralized system of decision making. This approach is characterized by decision-making authority being concentrated at the top level, with lower levels executing those decisions without inputs on strategic matters. This structure simplifies decision-making processes, but may limit innovation and responsiveness at lower levels.
Contrary to a decentralized system where decision-making powers are distributed across various levels within an organization, a centralized system significantly reduces the complexity of managing the operations but can also slow down decision-making processes and limit the sense of autonomy among employees.
Establishing the structure of a portfolio to meet specific financial goals is called:
A. Strategic allocationB. Tactical allocationC. RebalancingD. Risk adjustment
Answer:
A I believe
Explanation:
n 2010, Tara used $50,000 from funds she had invested in certificates of deposit as a down payment to buy a house. What function did this portion of her investments serve when she made the down payment?
Answer:
Medium of Exchange
Explanation:
A certificate of deposit represents a legal document issued by a commercial or economic institution such as a bank as evidence of a sum of money deposited by the individual for a particular period and with a specified rate of interest.
A Medium of Exchange, on the other hand, represents an intermediary system or instrument that can be used to make sales, purchases and facilitate the trade of goods or services between various parties. To qualify as a medium of exchange, the instrument should have a standard face value and must be acceptable to all parties.
Since Tara was able to put down $50,000 as represented on the Certificates of deposit, it becomes a medium of exchange, because it has a standard face value (as determined by the bank) and it is acceptable both by Tara and the estate from which Tara is purchasing the house.
A manager reports that she makes the right hiring decision 90% of the time. This is an example of _______________________.
Complete Question: A manager reports that she makes the right hiring decision 90% of the time. This is an example of _________________.
a. Attribution error
b. Judgment heuristic
c. Representativeness error
d. Halo effect
E. Overconfidence bias
Answer:
Overconfidence bias
Explanation:
Like a popular saying that "too much of anything is bad", Overconfidence bias is a situation in which a person elevates his confidence in making judgement above the accuracy of the judgement which is as a result of too much confidence.
It is a miscalculation of judgement accuracy simply put.
Cheers.
The manager's ability to make the right hiring decision 90% of the time demonstrates probability in business.
Explanation:This situation is an example of probability in business.
Probability is a branch of mathematics that deals with the likelihood of events occurring. In this case, the manager is reporting that she has a 90% success rate in making the right hiring decisions.
This means that there is a 90% chance that the manager will make the right hiring decision, and a 10% chance of making the wrong decision.
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The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will increase if the price level
a. increases by more than expected so that firms believe the relative price of their output has decreased.
b. increases by less than expected so that firms believe the relative price of their output has decreased.
c. increases by less than expected so that firms believe the relative price of their output has increased.
d. increases by more than expected so that firms believe the relative price of their output has increased.
Answer:
Option C is correct
Explanation:
This means an increase in actual price would make quantity aggregate supply curve to shift to the right.
The correct answer is that the quantity of output supplied will increase if the price level increases by more than expected, leading firms to believe the relative price of their output has increased.
Explanation:The misperceptions theory of the short-run aggregate supply curve suggests that the quantity of output supplied will increase if the price level increases by more than expected so that firms believe the relative price of their output has increased. Option (d) 'increases by more than expected so that firms believe the relative price of their output has increased' is the correct answer. This theory assumes that in the short-run, firms may misinterpret general increases in prices as increases in the relative prices of their products, which may lead them to increase production. Under the rational expectations framework, it is believed that people will not be consistently fooled by changes in the price level, and as a result, any effect on output and employment will be temporary, with the only long-term effect being on the price level.
Why can hiring people through the attraction-selection-attrition (ASA) framework be disadvantageous?
Answer: Like minded employees have difficulty offering fresh perspectives.
Explanation: The attraction - selection - attrition framework, or ASA framework is a model that states that people within a workplace are a function of 3 interellated elements: attraction, selection and attrition. It basically goes on to say that individuals are attracted to, selected by and kept in organisations by other employees who have the same psychological attributes as themselves. The ASA framework is then able to define the nature, processes, culture, and structure of the organisation by determining the types of individuals who work in the organisation.