What is the difference between a line of credit and a revolving credit agreement?
What will be an ideal response?
A line of credit is generally an informal agreement or understanding between the borrower and the bank about the
maximum amount of credit that the bank will provide the borrower at any one time. Under this type of agreement
there is no legal commitment on the part of the bank to provide the credit. In a revolving credit agreement, which is a
variant of this form of financing, a legal obligation is involved.
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Which of the following is likely to happen if people expect the inflation rate to be high and the central bank follows a tight monetary policy??
A. The economy will enter into a recession. B. ?The level of economic activity will increase. C. The actual inflation rate will rise. D. The federal funds rate will fall.
Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do
A) competitive advantage B) first-mover advantage C) economies of scale D) comparative advantage E) differentiation
Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost. Under variable costing, the unit product cost is:
A. $20 per unit B. $21 per unit C. $24 per unit D. $18 per unit
Employee burnout is generally brought on by
A. Physical fatigue. B. Mental fatigue. C. Poor physical health. D. Stress.