With a line of credit, the bank is compensated ________
A) based on the outstanding balance of the loan
B) based on the principal value of the credit line
C) exclusively with a fixed annual payment
D) based on a fixed interest rate tied to the T-bill rate
Answer: A
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The statement of cash flows helps predict future cash flows by reporting past cash ______
Fill in the blank(s) with the appropriate word(s).
A pitfall to avoid in pursuing a differentiation strategy is
A. meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. B. choosing a product offering that supports buyers' indifference to rival brands' offerings. C. trying to differentiate on the basis of attributes or features that are easily and quickly copied. D. spending on activities to differentiate the company's product to enhance profitability. E. charging a premium price for the differentiating features.
Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County. Unknown to both parties, this land had recently been rezoned and only single-unit dwellings can be constructed
A) This is a mistake of law. B) This is a mutual mistake of fact. C) Stewart is obligated to buy land elsewhere and have the complex constructed on property zoned for apartments. D) Will is liable to Stewart since Will is a contractor.
What is a credit rating? What is a credit spread?
What will be an ideal response?