Ask Question
BusinessBusiness
14 November, 23:51

A business will be likely to borrow to fund projects if the: a. project will produce a good or service that is in high demand. b. rate of return on the project is less than the interest rate on the loan. c. minimum efficient scale will be attained. d. rate of return on the project is at least as high as the interest rate on the loan.

+4
Answers (1)
  1. 15 November, 02:38
    0
    d. rate of return on the project is at least as high as the interest rate on the loan.

    Explanation:

    The business will only start those projects which can meet the return requirement of those stake holders who has provided funds to finance that project. When the funds are raised through loan to finance the particular project, then that particular project shall give the return, which shall be at least equal to the interest rate charged by the borrowers

    So based on the above discussion, the answer shall be d. rate of return on the project is at least as high as the interest rate on the loan.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A business will be likely to borrow to fund projects if the: a. project will produce a good or service that is in high demand. b. rate of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following are finance careers? Assistant Principal Risk manager Comptroller CFO Financial analyst Regional Sales Manager
Answers (1)
The opposite Market structure of a monopoly is
Answers (1)
Purchasing office supplies on account will: Multiple Choice Not change assets. Increase assets and decrease liabilities. Increase assets and increase liabilities. Increase assets and increase stockholders' equity.
Answers (1)
Karen wants to rent a car for 5 days, and she's interested in the loss damage waiver but not the collision damage waiver. if the daily rate is $35 and ldw is $55, what is her total rental cost?
Answers (1)
Career opportunities are based on which social influence: multiple choice interest rates. inflation. foreign competition. demographic trends. consumer demand.
Answers (1)
New Questions in Business
Property taxes are usually determined based on the property owner's income. the amount of money invested in the property. the earnings generated by the property. the value of the property.
Answers (1)
Scenario 15-6: The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fans and casual fans.
Answers (1)
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows: a. an increase of $9,000 from investing activities b.
Answers (1)
On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value was $8,000, and the expected useful life was 6 years.
Answers (1)
A country has private saving of $500 billion, public saving of - $100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. what is its supply of loanable funds?
Answers (1)
Home » Business » A business will be likely to borrow to fund projects if the: a. project will produce a good or service that is in high demand. b. rate of return on the project is less than the interest rate on the loan. c. minimum efficient scale will be attained.
Sign Up Forgot Password?