Explain peer-to-peer lending.
What will be an ideal response?
ANSWER: Peer-to-peer lending, commonly abbreviated as P2P, is the practice of lending money to unrelated individuals, or "peers," without going through a bank or other traditional financial institution. Also known as "debt-based crowdfunding," this lending takes place online on peer-to-peer lending companies' websites using various lending platforms. This form of financing is a twenty-first century phenomenon.
Peer-to-peer lenders are Internet-based sites that pool money from investors willing to lend capital at agreed-upon rates. P2P lenders charge fees for brokering and servicing loans and collect penalties for late payments as well.
Once thought of as an alternative funding option only for entrepreneurs unable to qualify for commercial loans, P2P lending is beginning to attract borrowers among established entrepreneurs seeking quick capital without the administrative overhead of traditional lenders. The first P2P lending sites appeared in 2005, bringing scale to the age-old idea of borrowing from friends.
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Answer the following statements true (T) or false (F)
1.Relatively low wages in Mexico make it impossible for U.S. manufacturers of labor-intensive goods to compete against Mexican manufacturers. 2.According to the infant-industry argument, temporary tariff protection granted to an infant industry will help it become competitive in the world market. When international competitiveness is achieved, the tariff should be removed. Exhibit 4.2 In the absence of international trade, assume that the equilibrium price and quantity of motorcycles in Canada is $14,000 and 10 units respectively. Assuming that Canada is a small country that is unable to affect the world price of motorcycles, suppose its market is opened to international trade. As a result, the price of motorcycles falls to $12,000 and the total quantity demanded rises to 14 units; out of this total, 6 units are produced in Canada while 8 units are imported. Now assume that the Canadian government levies an import tariff of $1,000 on motorcycles. With the tariff, 8 units are produced in Canada and quantity demanded is 12 units. 3.Refer to Exhibit 4.2. As a result of the tariff, the price of imported motorcycles equals $13,000 and imports total 4 cycles. 4.Refer to Exhibit 4.2. The tariff leads to an increase in Canadian consumer surplus totaling $11,000. 5.Refer to Exhibit 4.2. The tariff's redistribution effect equals $1,000.
Which of the following theories examines a person’s needs for autonomy and competence?
A. social learning theory B. reinforcement theory C. self-determination theory D. expectancy theory
All of the following is/are components of comprehensive income except
a. foreign currency translation adjustment. b. unrealized gains and losses on trading securities. c. deferred gains and losses on derivative financial instruments. d. change in the minimum pension liability. e. All of these answer choices are components of comprehensive income.
Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results.
Answer the following statement true (T) or false (F)