For the house hunting, Oliver and Juhi place a $3,000 deposit on it. If they do not buy Hilltop House, they will forfeit the money. Essentially, Oliver and Juhi have a "real call" on Hilltop House.
What is Earnest money deposit?Earnest money is a deposit given to a seller as proof of the buyer's good faith in a deal, frequently in real estate purchases.
Some features of earnest money deposit are-
A real estate transaction deposit is typically non-refundable once talks are through and the conditions are met, with a few exceptions. Make sure the home is the one you desire before putting down a deposit.The amount of the earnest money deposit is typically between 1 and 2 % of the purchase price, although it may be greater based on your agreement. It will be kept in an escrow account until closing, when the remaining down payment will be applied.Whatever is specified in the contract may designate a title firm, attorney, bank, or broker to hold the earnest money in escrow for the duration of the contract.To know more about the difference between real property and real estate, here
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Making the choice to invest today or to postpone that investment to a future date is a choice between mutually exclusive projects. When making this choice, what is the correct criterion to use
The correct criterion to use is choosing the investment date that produces the loftiest Net present value NPV moment.
What is the Net present value?Net present value( NPV) is a system used to determine the current value of all unborn cash overflows generated by a design, including the original capital investment. it is extensively used in capital budgeting to establish which systems are likely to turn the topmost profit.
Net present value( NPV) is used in capital budgeting to determine whether a design will be profitable, or to estimate different systems and determines which bone will be the most profitable.
it takes into consideration the time value of plutocrat, by blinking unborn cash overflows at an applicable reduction rate that is grounded on the company’s cost of capital and the design’s threat.
The vengeance period estimates how long it'll take for a design to induce sufficient cash overflows to pay back its original incipience costs, but it does not consider the time value of plutocrat and overall design profitability like NPV does.
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The Internet has ________ the intensity of price competition. Group of answer choices decreased increased had no impact on stifled
The Internet has option (b)i.e, increased the intensity of price competition.
How product pricing is decided?Numerous elements influence pricing decisions when it comes to product pricing models. These variables include the price of the product or service, the level of demand, the target market, as well as internal and external factors.
There are four main effects on the intensity of price competition due to the internet:
higher price transparencydownward price pressureCreative pricing strategiesAlternative pricing or policy structuresThere are seven main product pricing strategies
Value-based pricing.Competitive pricing.Price skimming.Cost-plus pricing.Penetration pricing.Economy pricing.Dynamic pricing strategies.To know more about pricing strategies refer to :https://brainly.com/question/14595156
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When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this effort most relates to the concept of
When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this effort most relates to the concept of sustainability.
Concept of sustainability:Meeting current requirements without compromising the ability of future generations to meet their own needs is referred to as sustainability.When marketers work in controversial or polluting?Marketers are largely prevented from becoming conscientious marketers when they operate in contentious or destructive businesses like cigarettes or fossil fuels. Vashon, a manager at a marketing research company, is attempting to ascertain whether his company adhered to ethical standards when it carried out its most recent study.What is ethical and unethical advertising?Advertising that adheres to ethical standards will highlight the distinctions between the marketed goods and services and those offered by rival businesses. While unethical advertising aims to confuse consumers by using a logo and messaging that are similar to those of the opposition.What is unethical advertising give examples?This is best illustrated by the promotion of dangerous goods like cigarettes. Given the high rate of lung cancer and other diseases linked to smoking among smokers, many would view cigarette advertising as an unethical business strategy.Learn more about sustainability here:
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If you are hired by an organization, you would be least hurt by inflation if Group of answer choices Your employer has a cost-of-living adjustment clause in the employment contract You increase savings in your bank account in anticipation of expected rise in inflation The government increases social security retirement payments in anticipation of expected inflation If your employer provides fixed annual increases in salaries and benefits in the employment contract
If we are hired by an organization, we would be least hurt by inflation if "the government increases social security retirement payments in anticipation of expected inflation".
What is social security retirement payments?Benefits from Social Security offer qualified retired adults and those with disabilities, as well as their spouses, children, and survivors, a portion of a replacement income.
To be eligible for benefits, a person must contribute to the Social Security system during their working years and accumulate 40 credits.
The role of social security in protecting against inflation are-
Because Social Security benefits are adjusted to the Consumer Price Index for Urban Wage Earners and Clerical Workers, it is often assumed that recipients are protected from inflation (CPI-W)A cost-of-living adjustment (COLA) is a yearly increase to your benefit that Social Security calculates based on inflation, if any, in addition to any calculations based on your earnings.Social Security replaces a percentage of your pre-retirement income based on their lifetime earnings.To know more about the Consumer Price Index, here
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You are willing to pay $9,000 now to purchase a perpetuity which will pay you and your heirs $240 each year, forever, starting at the end of this year. What is your annual rate of return
Annual rate is 2.67%.
Given payment is $240 each year and sale amount is $9,000.
Annual rate of return is to be computed.
The annual percentage rate is the interest earned by an amount charged to borrowers or paid to investors each year. APR is a number that shows the real yearly cost of money throughout the life of a loan or the revenue received on an investment.
The formula to compute the annual rate of return is given as:
Annual rate of return = Payment ÷ Sale amount
Now,
Annual rate of return = 240 ÷ 9,000
=2.67%
Hence, the annual rate of return is 2.67%.
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Assume the price of capital doubles and, as a result, firms make no change in the relative quantities of capital and labor they employ. This implies that
Assume the price of capital doubles and, as a result, firms make no change in the relative quantities of capital and labor they employ. This implies that: A) labor is not readily substitutable for capital.
Energy and labor, as well as capital and labor, are complementary, whereas capital and energy are not. These findings support the US time series research by Hudson and Jorgenson (1974) and Berndt and Wood (1975), however they are in conflict with the global cross-section analysis by Griftin and Gregory (1976).As the capital stock grows, the marginal product of labor also rises.Replacing employees with machines in an effort to boost productivity and lower production unit costs. This can result in persistent unemployment.What is the relationship between capital and labor?Labor needs supplies to work with, as well as shelter, tools, machinery, and other productive tools, in order to produce successfully.
These all require capital, which is a collection of prior earnings.
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The Unadjusted Trial Balance at the end of August has $5,950 in the credit column for Accumulated Depreciation. The Adjusted Trial Balance at the end of August has $7,600 in the credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of August
The correct option is A. $1,650
The amount of the depreciation expense adjustment for the month of August is $1,650.
What is Adjusted Trial Balance?
Adjusted trial balance is used after all the adjustments have been made to the journal. The adjusted kind, on the other hand, is used when adjusting the two sides of the ledger – the debit and credit.
What is Unadjusted Trial Balance?An unadjusted trial balance is basically used before all the adjustments will be made. While an unadjusted trial balance is used when the entries are not yet considered final in a certain period.
What is Adjusting Entry?The adjusting entry for a depreciation expense involves debiting depreciation expense and crediting accumulated depreciation. This is shown below.
The depreciation expense appears on the income statement like any other expense. The accumulated depreciation is a contra asset account; it is shown as a deduction from the cost of the related asset in the balance sheet.
Hence, Based on the information given :
Amount of the Depreciation for the month of August =$7,600 - $5,950 = $1,650
Your question is incomplete, but most probably your full question was:
The amount of the depreciation expense adjustment for the month of August-
A. $1,650
B. $7,600
C. amount can not be determined
D. $5,950
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In addition to leading to the final decision to buy an item, consumer promotions programs help generate store traffic and _______________.
Consumer promotions programs can help generate store traffic and enhance brand loyalty, as well as leading to the final decision to buy an item.
What is an advertisement?An advertisement refers to consumer promotions programs that are designed and developed with the sole intention of making the various goods or services being offered by a business firm to become known, popular and familiar to all of its customers and potential customers.
This ultimately implies that, consumer promotions programs can help a business firm to generate store traffic and enhance brand loyalty, as well as leading to the final decision to buy an item.
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If lenders have limited capital during a period of heightened uncertainty, such as the Financial Crisis of 2007-2009, they will most likely Multiple choice question. lend aggressively to large corporations. borrow additional capital. lend aggressively to small businesses. hoard their capital.
In times of extreme uncertainty, like the Financial Crisis of 2007–2009, lenders are more prone to hoard their capital if they have limited funds.
Hoarding: What Is It?A speculator who buys and stores huge amounts of a good with the hope of profiting from future price increases is said to be hoarding. The practice of purchasing goods, particularly gold, is most usually referred to as hoarding.
What exactly does it mean to hoard cash?A speculator who buys and stores huge amounts of a good with the hope of profiting from future price increases is said to be hoarding. The practice of purchasing goods, particularly gold, is most usually referred to as hoarding. Hoarding is, nevertheless, occasionally applied in other economic circumstances.
What is an illustration of hoarding?Compulsive buying, the compulsive accumulation of free stuff (like collecting flyers), or the compulsive pursuit of ideal or one-of-a-kind items are all related to hoarding.
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Why is internal control over cash important? Check all that apply.
- the elevated risk of theft
- the high volume of cash transactions
- the inherent lack of segregation of duties
- the infeasibility of document procedures
Except for option C. All that apply Internal controls must be in place to protect these assets and ensure that only authorized individuals have access to them.
What is Internal Control?Internal control is a procedure implemented by a company's board of directors, management, and other staff members and intended to give reasonable assurance that the information is trustworthy, accurate, and timely. of adherence to relevant laws, rules, contracts, policies, and procedures.
Thus, Internal control is crucial when it comes to cash because it is susceptible to theft or loss. Because of the enormous volume of cash transactions, there is always always a very high risk of theft, which is prevented by the separation of roles and the impossibility of document procedures.
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An Investment Adviser Representative (IAR) is also a registered broker-dealer. The IAR has a brokerage client who has a $1,200,000 account; and a net worth of $2,500,000. The client wants the IAR to take over the management of the account, with the IAR to be compensated on a performance basis. The IAR should tell this client that the account:
Performance fees are only permitted for wealthy clients who have at least $1,000,000 invested or have a minimum $2,100,000 net worth, therefore this client qualifies under the Investment Advisers Act of 1940.
Who is an Investment Adviser Representative?A representative of an investment adviser is typically someone who, in exchange for payment,
makes recommendations or otherwise renders advice regarding securities. manages client accounts or portfolios.chooses which recommendations or advice regarding securities should be given.Investment Advisory Act of 1940Investment consultants are governed by this statute. With few exceptions, this Act mandates that businesses or single proprietors who get payment for advising people on securities investments register with the SEC and abide by rules meant to safeguard investors.
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ompanies that want to meet the diverse needs of their employees by offering work-scheduling options can use: Group of answer choices flextime job enlargement job enrichment job rotation gain-sharing
the correct answer is d. gain sharing
gain sharing-
An incentive plan wherein personnel or clients acquire advantages at once due to cost-saving measures that they initiate or take part in.
Gains sharing, gainsharing, advantage percentage, or gainshare is a device companies use to try and get their personnel to turn out to be extra productive. It is a control mechanism to boost profitability via means of motivating people to enhance their overall performance via participation and involvement. As their productiveness increases, so do the company’s profits. Workers in the end share financially in the improvement.
Gains sharing, however, no longer bring about enormous enhancements if control does not take part closely.
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Apple operates a blog called Apple Newsroom, where you can read news, find updates and see videos on Apple products. The information is both engaging and educational. Apple Newsroom is an example of a
Apple operates a blog called Apple Newsroom, where you can read news, find updates and see videos on Apple products. The information is both engaging and educational. Apple Newsroom is an example of a Corporate blog.
What is a corporate blog?A corporate blog is one that is written and used by a company, organization, etc. to further its objectives. The benefit of blogs is that, because of centralized hosting and generally organized conversation threads, posts and comments are simple to find and follow.
More information types are permitted by corporate blogs.
However, corporate blogs provide you the opportunity to focus on particular advantages or themes in a way that's in line with your objectives and what your readers personally want.
There are four types of corporate blogs:
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At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $314,000 and in Allowance for Uncollectible Accounts of $590 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be:
Bad debt expense for the year should be $11,970
Given :
account balances in Accounts Receivable = $314,000
Allowance for Uncollectible Accounts = $590
allowance for uncollectible accounts should be 4% of accounts receivable.
To Find :
Bad debt expense
Solution :
A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.
Bad debt expenses are generally classified as a sales and general administrative expense and are found on the income statement.
We first find the balance that should be in the allowance account as of December 31
$314,000 × 4% = $12,560
We subtract the current balance in the allowance account to find the bad debt expense for
$12560 - $590 = $11,970
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When equilibrium GDP is at full-employment GDP and autonomous consumption declines, firms are induced _____
When equilibrium GDP is at full-employment GDP and autonomous consumption declines, firms are induced to reduce production output thus moving the level of GDP downward.
What is equilibrium GDP?Gross domestic product (GDP) is a crucial economic metric for assessing a country's overall financial situation. It is determined by summing up the entire monetary value of all the goods and services produced in a nation over the course of a year.
Equilibrium GDP is the level of GDP at which total demand and total supply are balanced.
An economy is in a recession if its real GDP at the moment is lower than the output at full employment. An economy is in a boom if its real GDP at the moment is higher than its output at full employment. We say the economy is in long-run equilibrium if the current output is equivalent to the output at full employment. The output is not excessively high or low. It fits perfectly.
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Suppose the economy is operating in the horizontal part of the Keynesian zone of the SRAS curve. Suddenly, aggregate demand increases. As a result real GDP will _____ and prices will _____.
Suddenly, aggregate demand increases. As a result real GDP will decrease and prices will remain largely unchanged.
Aggregate demand increases as the components of aggregate demand, including personal consumption, capital spending, government spending, and exports minus imports, increase.
Aggregate demand is a measure of the aggregate demand for all manufactured goods and services produced in the economy. Aggregate demand is expressed as the total amount exchanged for those goods and services at a particular price level and time point.
Key findings
Total demand measures the total demand for all finished goods and services produced in the economy.Aggregate demand is expressed as the total amount spent on those goods and services at a particular price level and time point.Aggregate demand includes all consumer goods, capital goods (factories and equipment), exports, imports, and government expenditures.Learn more about Aggregate demand here:https://brainly.com/question/1490249
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Question 6 You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment be
$300,000 is the correct answer.
using simple interest,
P.R.T/100
=> 100000 . 30 . 10 /100
=> $300,000
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The annual payment would be $10,607.92
Given that rate is 10%, nper is 30 year, pv is -100000 and fv is 0
Annual payment is to be find using the excel.
With respect to any Material Contract, Annual Payments means (x) the total amount of payments expected to be paid or received under such Material Contract (y) divided by the total number of years of the duration of such Material Contract.
These payments are made every year. For instance annuity payment.
Now using the excel the annual payment is computed:
Hence, the annual payment is $10,607.92
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Assume the price elasticity of demand for a product is 0.6. When the price is $15, consumers buy 50 units of the good. If the price decreases by twenty percent, how many units will consumers buy
The consumer will buy 56 Units
Procedure to solve
Δp = 20% of 15
Δp = 20/100 × 15
Δp = 3
e = 0.6
Formula:
e = (Δq/Δp)×p/q
0.6 = (Δq/-3)×15/50
0.6 × (-3) = Δq × 0.3
Δq = 1.8/0.3 = 6
Price decreases and quantity increases
Therefore
q' = q+Δq
q' = 50+6
q' = 56
p is the given price, q is the given quantity, Δp is the change in price, Δq is the change in quantity, e is the elasticity, q' is the new quantity.
Price Elasticity
The price elasticity of demand can be said to be an economic measure of the increase in the quantity of commodity demands or consumes in relationship to its change in price.
The price elasticity of demand refers to the percentage change in the quantity demanded of goods divided by the percentage change in the price.
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According to ________, law is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, d
According to Marxist-socialist tenets, law is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts.
Marxists contend that compared to a capitalist society, a socialist one is far better for the majority of people. "The socialization of production is bound to result in the conversion of the means of production into the property of society," wrote Vladimir Lenin before the Russian Revolution.
The core tenets of the Marxist worldview hold that social class is the most significant category of people and that the economic circumstances of a society form its foundation. Another tenet states that community ownership of the means of production will replace private property as the primary institution of capitalism.
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When an identified risk is not mitigated by an existing control this is known as.
When an identified risk is not mitigated by an existing control this is known as Residual risk.
What is Residual risk?Residual risk is the risk left after a mitigating effect or control have been used.
Other risk would have been eliminated but these risk still remains.
Therefore, When an identified risk is not mitigated by an existing control this is known as Residual risk.
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When an identified risk is not mitigated by an existing control this is known as Residual risk.
What is Residual risk?Residual risk swerves as the risk that still exist after making all efforts to identify and eliminate all types of risk .
In this case, When an identified risk is not mitigated by an existing control this is known as Residual risk.
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Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced at $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 30. If Mr. Rational is a utility maximizer, he should:
Mr. Rational is a utility maximizer, he should buy less of X and more of Y.
What do you mean by marginal utility?In economics, marginal utility refers to the additional pleasure or benefit (utility) a buyer receives by purchasing an additional unit of a good or service.What is marginal utility and formula?The general rule in economics is that marginal utility equals total utility change divided by change in quantity of goods. The equation looks like this Total utility difference divided by amount of commodities difference equals marginal utility. Find the first event's overall utility.
According to the question:
The amount that Mr. Rational is going to spend = $27.
Quantity of good X = 5 units.
Price of good X (Px) = $3 per unit.
Marginal utility of 5th unit of X (MUx) = 30.
Quantity of good Y = 6 units.
Price of good Y (Py) = $2 per unit.
Marginal utility of 6th unit of Y (MUy) = 18.
Now find [tex]$\frac{M U x}{P x}=\frac{30}{3}=10$[/tex]
Now [tex]$\frac{M U y}{P y}=\frac{18}{2}=9$[/tex]
Since the [tex]\frac{M U x}{P x}$ is greater than $\frac{M U y}{P y}$.[/tex]
So, good x will be substituted for y in order to reach the consumer equilibrium.
[tex]$\frac{M U x}{P x}=\frac{M U y}{P y}$[/tex]
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g If a monopolist is producing a level of output where MR exceeds MC, then it should Group of answer choices Lower its output. None of the Answers are Correct. Raise its price. Increase its output.
If a monopolist is producing a level of output where MR exceeds MC, then it should Increase its output.
What happens if MR exceeds MC?MR is the result of the sale of an additional unit, added to TR. When an additional unit is produced, MC is added to TC. Thus, TR-TC becomes maximum for greatest profit when MR=MC. The producer will keep making products as long as MR is greater than MC since it will increase his earnings.The monopolist will choose the level of output that maximizes profits, where MR = MC, and then set the price for that amount of output according to the market demand curve. The monopolist makes a profit if the price is higher than the average cost.If the marginal cost exceeds the marginal revenue, the unit is not economically viable for the company to create because it costs more than it makes.To learn more about MR and MC refer to:
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quizet Flood protection insurance is generally administered and subsidized by the federal government through the Department of Housing and Urban Development. Question 7 options: True False
The statement is true.
The NFIP provides flood coverage to property owners, renters, and companies, and having this insurance enables them to recover quicker while floodwaters recede. The NFIP works with communities required to adopt and put into effect floodplain control guidelines that help mitigate flooding results.
The preceding segment (styles of capabilities) identified four number one styles of skills to acquire long-time period chance discount thru mitigation making plans: making plans and regulatory, administrative and technical, financial and schooling, and outreach.
According to the NFIP, the subsequent styles of damage aren't blanketed via flood coverage: damage due to moisture, mold, or mold that could have been avoided with the aid of the property owner or which isn't on account of the flood. damage as a result of earth movement, even supposing the earth movement is as a result of the flood.
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True or false: The value chain concept is applicable primarily to high-tech firms in rapidly changing environments.
False. The value chain concept can be applied to basically any firm.
What is value chain concept?
A value chain is a concept that describes every step of a company's operations in the development of a good or service, from the acquisition of raw materials through the final delivery to the customer.
The value chain framework consists of four secondary activities, procurement and purchasing, human resource management, technological development, and business infrastructure, in addition to five primary activities: inbound operations, outbound logistics, marketing and sales, and service.
When a company determines its major, secondary, and related operations and sub-activities and assesses the effectiveness of each point, this is known as a value chain analysis.
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"GDP per capita" means that the GDP is calculated per
country.
day.
dollar.
person.
When GDP is said to be per capita, it means that GDP is being calculated per person.
What is GDP per capita?This refers to the Gross Domestic Product of a nation being divided by the number of people in that nation.
This measure is used to show the productivity of the people in the nation such that a higher figure means that the citizens are more productive.
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Answer:
D. person
Explanation:
The businesswoman who kicks her dog off the porch when she gets home because she's had a rough day at work is using the defense mechanism known as projection. Group of answer choices True False
This is false that the businesswoman who kicks her dog off the porch when she gets home because she's had a rough day at work is using the defense mechanism known as projection.
What is projection?A defensive tactic called projection entails attributing own undesirable traits or emotions to other individuals.
Unwanted emotions might be shifted onto someone else as a means of defense, making them seem as though they are coming from outside the person. When someone feels threatened by his own rage and accuses another of harboring hostile thoughts, this is a classic example of projection.
Displacement is the act of venting human anger, emotions, and urges on less dangerous individuals or things.
Displacement and projection are similar, but displacement includes misattributing one's own behavior, whereas projection entails misinterpreting the target's reasons.
Therefore, the businesswoman who kicks her dog off the porch when she gets home because she's had a rough day at work is using the defense mechanism known as Displacement.
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________ reflects the link between consumers’ demand for a company’s product and the company’s purchase of necessary inputs to manufacture or assemble that particular product.
Derived Demand reflects the link between consumers’ demand for a company’s product and the company’s purchase of necessary inputs to manufacture or assemble that particular product.
The call for every one of the elements of manufacturing is often referred to as a "derived" demand to emphasize the truth that the relationship between the element's price and the quantity of the element demanded by groups the use of it in manufacturing is directly dependent on the patron name for the very last product(s) the issue.
As a result, the call for exertions is derived name from the call for goods and offerings. For example, if the demand for a first-rate alongside wheat increases, then this results in a growth in the call for hard work, in addition to calls for different factors of production together with fertilizer.
Direct and derived demand. Direct call for is the call for for a completely last precise. food, garb, and cell phones are an instance of this. Also called a self-sustaining call, it's miles impartial of the call for one-of-a-kind merchandise. Derived call for is the call for a product that comes from the usage of others.
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MM Proposition II shows that Blank______. Multiple choice question. the cost of equity rises with leverage the market value of the firm is unaffected by its capital structure equity is less expensive than debt there is no risk involved with leverage when there are no corporate taxes
MM Proposition II shows that the cost of equity rises with leverage.
According to the second tenet of the M&M Theorem, a company's cost of equity and level of leverage are directly inversely related. Increased leverage increases a company's likelihood of defaulting.According to Proposition I, a company's market value is unaffected by the ratio of debt to equity in its capital structure. According to Proposition II, the cost of equity is directly and inversely proportional to the amount of debt in the capital structure.The capital structure irrelevancy theory is supported by the Modigliani and Miller approach to capital theory, which was developed in the 1950s. This shows that a company's capital structure is unaffected by a firm's valuation.Thus this is the answer.
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Communication can most usefully be understood as a(n) Multiple Choice
a) innate human ability.
b) art form for which a chosen few possess raw talent.
c) skill acquired gradually through practice.
d) blunt tool that will always fail to accomplish its goal.
Communication can most usefully be understood as an innate human ability. Thus the correct option is A.
What is communication?Communication is referred to the exchange of information between two individuals in the form of conversation, opinion, suggestion, or advice with the help of medium or direct interaction.
By allowing us to connect with others and share our problems and perceptions, communication aids in the development of interpersonal relationships. It enables us to convey our emotions.
The likelihood of conflict is reduced when messages are conveyed clearly since there is no possibility for misinterpretation or message modification and helps in better achievement of objectives, especially in team building activities.
Therefore, option A is appropriate.
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The effect of financial leverage Blank______ for all earning levels. Multiple choice question. is variable is disadvantageous is advantageous
The impact of financial leverage varies across all income levels.
The use of debt to acquire extra assets or fund initiatives is known as financial leverage. Individuals or corporations borrow money to incur debt. Borrowers guarantee lenders that they will repay the principle and interest on their loans. Financial leverage is also known as leverage or equity trading.
Fundamental analysis use the degree of financial leverage (DFL) to measure the sensitivity of a company's earnings per share (EPS) to changes in profits before interest and taxes (EBIT). Whenever a corporation has a high DFL, it typically has large interest payments, which reduces EPS.
Therefore, the correct option is variable.
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