Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely

Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section: Chapter Questions

Problem 25AA

See similar textbooks

Similar questions

Write a report highlighting how simulation methods can be embraced in banking sector
1. How does a mutual fund lower transactions costs through economies of scale?
How can an inaccurate estimate of assets have serious consequences?
The writing should be in print, not in handwriting By no more than one page, Explain type of portfolio office and the difference between them
Compare the interest rates, fees, and other items between 3 mortgage companies or banks for a 15 year and 30 year mortgage of $300,000. Write down your findings. Then, Discuss what you have learned from this experience.
Mountain Cycle specializes in making custom mountain bikes. The company founder, P. J. Steffan, is having a hard time making the business profitable. Knowing that you have great business knowledge and solid financial sense, P. J. has come to you for advice. J. would like you to determine how many bikes Mountain Cycle needs to sell per year to break even. Using Goal Seek in Excel, solve using the following by using the AYK24_Data.xlsx file Fixed cost equals: $ 70,000 Unit cost equals: $ 1,500 Bike price equals: $ 3,500 Requirement: 1.Goal Seek Create formula for break even Set up goal seek function
discuss why people working in the finance industry might make unethical decisions.please give a example
Write the answer in 8-10 lines for the given question below Explain the impact of covid 19 on online banking.
financial economics Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The connection between financial management and financial market
Mcq question Solve fast and properly Your friend Janet asks for some advice regarding her limited liability company. The company's financial position has steadily deteriorated and it is now unable to pay its debts. In total, the company owes its creditors $500,000.00 but has assets of only $10,000.00. Janet is worried about her own financial situation and wants to know, what can the creditors do? Seize the assets of the company. Sue the owners of the company personally. Seize the assets of the directors of the company. Seize the assets of both the company and its owners.
Describe how financial statements are used to help businesses make finance-related decisions