Good reasons to borrow money include:
Answer: increased returns are greater than the cost of borrowing money
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Business Management
- All of the following are examples of items resulting in variable costs except:
- Matthew will have some timber available to sell in December, 1987. His income for 1987 is going to be about $40,000 but his estimated income for 1988 is $20,000 because his wife plans to quit work to begin a family. With no significant changes in the tax law between 1987 and 1988, he will probably be better off to:
- Mr. Johnson harvested corn in October, 1986. He stored the corn and sold it in May, 1987. With the accounting method he uses, he did not report the value of the corn as income on his 1986 tax return but will report it as income in 1987. His accounting method must be
- How much will the yearly depreciation be if you use the straight line depreciation method for a computer system costing $3,500 with a seven year life?
- Magruder Farms Inc. presently has current liabilities in the amount of $10,000, intermediate liabilities of $50,000 and long term liabilities of $225,000. In order for the business to be considered solvent, total assets must be greater than ________.
- The speculator is important in the futures market because he:
- Farm budgets differ from farm records in that:
- Daryl purchased a tract of land and the owner agreed to finance the purchase. The loan was amortized over ten years but a clause in the contract called for the loan balance to come due at the end of five years. This particular type loan is called a ______ loan.
- When using published enterprise budgets, a producer should:
- "Depreciation is best defined as:
- A business owned and managed by one person is called a:
- Other things being equal, a decrease in the amount of an agricultural commodity offered for sale will result in:
- An appropriate use for long term credit is to:
- A lease between a tenant and a landlord should:
- Which items are most readily converted into cash without loss?
- Which of the following items would most likely result in a loss for a vegetable producer who decides not to plant anything this year because of low prices?
- Pam said, "I paid $12,000 for this truck two years ago and would like to sell it for $10,000, but I know it has ________ more than that."
- Hedgers and speculators in the futures market are similar in that they
- If all other factors remain the same and the supply of a product goes up, then the price of that product will probably:
- Jason has a fixed cost of $2 and a projected variable cost of $.50 per bag of cabbage. The best price he can contract for a week before planting time is $2.25 a bag and it is too late to shift to another enterprise. Unfortunately, the projected price over the next few years is no better. What is your advise to Jason?
- What factor might increase the demand of U.S. wheat
- Suppose land prices in John's area are expected to be stable over the next several years and taxes are set at $10 per acre/per year. If John can get a long
- Cooperatives differ from noncooperative corporations in which area?
- A soybean producer decides to store his beans in the local elevator for six months. The price at harvest is $5.20 per bushel and the elevator charges 1.5 cents per month/per bushel for storage. He has 5,000 bushels to sell and must borrow $26,000 at 10 percent interest for six months while he stores the soybeans. What price must he receive for his soybeans to break even and cover his storage and opportunity costs
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.