Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Question
Chapter 20.4, Problem 1MED
Summary Introduction
To determine: Alternatives that are available for bank account openings and whether the given activity is ethical.
Introduction:
Ethics refers to the moral principles that define what is right and what is wrong. Ethics are different for every individual. One thing that is right for one individual may not be right for other individual.
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Which of the following is not true in terms of contributing positively to the business model of leasing assets for a lessor?
Select one:
a.
Often a lessor can sell an asset that is returned at the end of the lease for more than the residual value included in pricing the lease.
b.
A lessor cannot claim capital cost allowance on assets it leases.
c.
A lessor who manufactures assets can use leasing as a way to sell its inventory to lessees that otherwise would not be able to afford to purchase the asset from them outright.
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A lessor retains legal ownership of assets it leases which is important in situations where lessees do not honour their lease commitments.
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None of the above.
Your parents invest $10,000 in a college fund when you are born. They find a fund that will return 8% per year for 18 years.
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You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens Bank taken out 60 days ago that is due in 90 days. The amount of the loan is $70,000, and the rate is 9.5% using ordinary interest.
You currently have some excess cash: $25,000. Due to situations beyond your control, you, as the owner, must make an immediate business decision now to pursue only one of these two choices:1) sending all of the $25,000 to Citizens Bank as a partial payment on your loan, or2) using the $25,000 to purchase serving supplies such as food containers, cups, and plastic dinnerware for your inventory. This is the last day to take advantage of the opportunity to save some money due to a special discount price that is "10% off" the normal cost of $25,000 for these items.
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(a)
How much interest (in $) will you save on this loan if you make the partial payment and don't purchase the additional serving supplies? (Round your answer to two…
Chapter 20 Solutions
Understanding Business
Ch. 20.1 - Prob. 20.1AQCh. 20.1 - Prob. 20.1BQCh. 20.2 - Prob. 1TPCh. 20.2 - Prob. 2TPCh. 20.2 - Prob. 3TPCh. 20.2 - Prob. 4TPCh. 20.2 - Prob. 5TPCh. 20.3 - Prob. 20.3AQCh. 20.4 - Prob. 1MEDCh. 20.4 - Prob. 6TP
Ch. 20.4 - Prob. 7TPCh. 20.4 - Prob. 8TPCh. 20.5 - Prob. 20.5AQCh. 20.6 - Prob. 20.6AQCh. 20.7 - Prob. 20.7AQCh. 20.7 - Prob. 9TPCh. 20.7 - Prob. 10TPCh. 20.7 - Prob. 11TPCh. 20.7 - Prob. 12TPCh. 20.7 - Prob. 13TPCh. 20 - Prob. 1CECh. 20 - Prob. 2CECh. 20 - Prob. 3CECh. 20 - Prob. 1CTCh. 20 - Prob. 2CTCh. 20 - Prob. 3CTCh. 20 - Prob. 4CTCh. 20 - Prob. 1DCSCh. 20 - Prob. 2DCSCh. 20 - Prob. 3DCSCh. 20 - Prob. 4DCSCh. 20 - Prob. 5DCSCh. 20 - Prob. 1PPTCh. 20 - Prob. 2PPTCh. 20 - Prob. 3PPTCh. 20 - Prob. 1VCCh. 20 - Prob. 2VCCh. 20 - Prob. 3VC
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