Advantages of borrowed capital

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Answer 1

Answer: Oneof the advantages of borrowed capital is that interest rate is low because thedebts are secured by the assets of the business. With sufficient capital, the potentialrate of the profit will be high. The profit rate is higher than the interestrate from debt. Another advantage is that the interest from the borrowedcapital is considered as an expense. The interest from the debt is included asan expense which is a deduction from the income. Thus, the income will be lesserand the income tax will also be lowered.

Related Questions

Some elements necessary for success in the home inspection field are basic writing skills, empathy with clients, and technical knowledge. Which of the following is another important requirement?a. Communication skillsc. Membership in ASHIb. Construction experienced. Engineering experience
In one or more complete sentences, explain the details and requirements to obtain a driver license.
western beef stock is valued at 62.19 a share the company pays a constant annual dividend of 4.40 per share what is the total return on this stock
Bill manages the quality department. His people check parts made by the production departments to assure all specifications are met. Bill is ________. A. a non-manager B. a staff manager C. a middle manager D. a line manager
Assume that two investment opportunities have identical expected values of $100,000.Investment A has a variance of 25,000, while investment B’s variance is 10,000. Wewould expect most investors (who dislike risk) to prefer investment opportunity:_____.a. investment opportunity because it has less risk.b. investment opportunity because it provides higher potential earnings.c. investment opportunity B because it has less risk. d. investment opportunity B because of its higher potential earnings.

Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital). In the short run, Christine most likely considers.

Answers

Answer:

Labor to be variable and capital to be fixed

Explanation:

Christine started off a new firm and only needed her own labor and a computer.

As the business grows there will be more work to be done, so her personal labor will be insufficient. There will be need for extra hands to get tasks done, and also people with specialised skills will need to be hired. Labor will be variable because it will change according to business needs. More employees when work is much and scale down on labor when work is less.

Capital needs will increase to effectively support the growing business, for example tables, chairs, computers, stationery, an office, and other equipment. Capital obtained will be fixed in nature especially land, office building, and office equipment.

Suppose that your employee Richard has been having trouble with the paperwork he must do for his job. Your goal is for the employee to improve his performance; i.e. decrease his rate of errors. You are considering two approaches: Option 1 is to spend time with Richard every day helping him with his job and appreciating him every time he performs well. This is an appealing option to Richard because he appreciates the attention and sees it as a reward. Option 2 is to tell Richard that he would not be entitled to any incentive until his performance improves. Option 1 in the scenario above is an example of____________.a. negative reinforcement.b. extinction.
c. punishment.
d. none of the above
e. positive reinforcement.

Answers

Answer:(E) Positive reinforcement

Explanation:

According to the given scenario, the positive reinforcement is one of the type of psychological behavior that helps in strengthening the behavior of the organisms.

The Option (1) is basically illustrating the concept of the positive reinforcement as Richard is spend his maximum time in the job and appropriate him when he perform well in the work.

The positive reinforcement is one of the type of operant conditioning in which it define the various types of new behavior and focuses on reducing the unwanted things.

Therefore, Option (E) is correct answer.

___________ typically refers to the promotion and sale of different versions of a media product across the various subsidiaries of a media conglomerate.

Answers

Answer: Synergy

Explanation:

Synergy is described as the intercommunication in between two or more entities in order to construct a collaborative effect. This effect is known to be greater than the effort that would have be in place , if they were acting alone. In comparison to the cross media concurrence, the synergy takes place when the media commodity is being advertised across the other platforms. Example, a commodity being promoted in a movie.

Jerry's Phone Service is a monopoly. Select the items that describe the price and quantity chosen by Jerry.will result in efficient use of resources
will result in equilibrium price
will maximize profits
will cause shortage of goods

Answers

The price and quantity chosen by Jerry will likely maximize profits, as he has no competitors to worry about and can set prices at the level that maximizes revenue. Therefore, option A is correct.

What is monopoly?

Monopoly is a market structure in which a single company or entity has exclusive control over the production and distribution of a particular product or service, with no close substitutes. This means that the monopolist has significant market power and is able to set prices higher than the competitive level, resulting in higher profits.

Based on the fact that Jerry's Phone Service is a monopoly, it is possible to conclude that:

The price and quantity chosen by Jerry will likely maximize profits, as he has no competitors to worry about and can set prices at the level that maximizes revenue. Therefore, option C is correct.

It is not possible to determine whether the price and quantity chosen by Jerry will result in efficient use of resources, as this would depend on the specific circumstances of the market and the resources involved. Therefore, option A is not necessarily correct or incorrect.

It is not possible to determine whether the price and quantity chosen by Jerry will result in an equilibrium price, as this would depend on the demand for his service and his willingness to adjust prices in response to changes in demand. Therefore, option B is not necessarily correct or incorrect.

It is not likely that the price and quantity chosen by Jerry will cause a shortage of goods, as he has a monopoly and is able to control the supply of his service. Therefore, option D is incorrect.

Learn more about monopoly here:

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A monopoly is a market structure where one seller has a unique product that is on the market. There is no competition and there are no perfect substitutes from the product. The seller holds all of the power in pricing the item due to no competition. Based on the definition the price and quantity chosen by Jerry will efficiently use all of the resources.

Management is the attainment of organizational goals in an effective and efficient manner through ______, ______, ______, and ______ organizational resources.

Answers

Answer: Planning, organizing, leading and controlling.

Explanation: Planning refers to setting of objectives and goals. Organizing focuses on collection of resources to attain those objectives. Leading refers to persuading the employees to work on plan. Whereas, controlling refers to taking actions for effective implementation of the plan made.

Together these four terms are described as functions of management which helps an organization to achieve its goals.

Answer:

planning, organizing, leading and controlling

Explanation:

hope it helps ;)

Danielle, searching online for a hair fall control shampoo, entered the HairCare website.She noticed that the HairCare web page for shampoos also showed conditioners, hair gels, and hair dryers in the "Customers Who Bought This Item Also Bought" section in its product screens. Which of the following techniques does HairCare use in order to cross-sell its products?A) market basket analysis.
B) predictive analysis.
C) what-if analysis.
D) goal-seeking analysis.

Answers

Answer:

A) market basket analysis.

Explanation:

Based on the information provided within the question it seems that the technique that HairCare is using in order to cross-sell its products is called Market Basket Analysis. This is a technique used with the belief that if an individual buys a certain product they are more likely to buy another set of specific products that are gathered from data of other people who have purchased the product alongside other items. Like HairCare is doing by having a "Customers Who Bought This Item Also Bought" section.

Other Questions

Shawn went to a restaurant where the beer was mediocre and the place was run-down. The restaurant was out of many of its more popular menu items. Yet Shawn remembered the restaurant fondly because he had dinner with the girl he would end up dating steadily. They really hit it off that night. A few months later he decides to return to the restaurant, only to find that he was disappointed in the food and service. He thinks it's strange because he had such a good experience last time. What situational factor likely influenced Shawn's first experience?a. reason for purchaseb. buyer mood or conditionc. social surroundingsd. time considerationse. physical surroundings

Definition of collateral

What is the tax on money or property that one living person gives to another called

The price a property will bring when neither the buyer nor the seller is acting under duress and it has been on the market for a reasonable length of time is defined as