D. Collateral
Having collateral can help you secure a lower interest rate on a loan, as it reduces the lender's risk. In contrast, a low credit score, a history of defaulting, and using all available credit typically lead to higher interest rates.
Which of the following things can help you get a lower interest rate when you receive a loan?
A.
A low credit score
B.
A history of defaulting
C.
Using all of your available credit
D.
Collateral
7 answers
Which of the following assets is the most liquid?
A.
Inventory
B.
Real estate
C.
Money in the bank
D.
A piece of equipment
A.
Inventory
B.
Real estate
C.
Money in the bank
D.
A piece of equipment
C. Money in the bank
Money in the bank is the most liquid asset among the options provided. Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its value. Money in the bank is already in cash form, while inventory, real estate, and equipment take time to sell and may incur costs in the process.
Which of the following business ownership structures offers the best liability protection but higher taxes?
A.
A nonprofit corporation
B.
A C corporation
C.
A partnership
D.
A sole proprietorship
A.
A nonprofit corporation
B.
A C corporation
C.
A partnership
D.
A sole proprietorship
B. A C corporation
A C corporation offers the best liability protection for owners (shareholders) because it is a separate legal entity, which shields personal assets from business liabilities. However, C corporations are subject to double taxation—once at the corporate level on profits and again at the individual level on dividends distributed to shareholders, which can result in higher overall taxes compared to other structures like sole proprietorships or partnerships.
In a planned economy, prices of commodities are controlled by _________.
A.
Supply and demand
B.
Producers and consumers
C.
The government
D.
Private enterprises
A.
Supply and demand
B.
Producers and consumers
C.
The government
D.
Private enterprises
C. The government
In a planned economy, the government controls prices of commodities. This type of economy relies on central planning rather than market forces such as supply and demand to set prices and allocate resources.