Discussion Questions
15-1. This chapter discusses four important issues
that will shape compensation professionals?
work for years to come. Which one of these
issues stands to create the greatest uncertainty
for compensation professionals? Explain
your answer.

Answers

Answer 1

The question is about the Compensation of professionals and its issues.

The most important issue out of the four discussed is the workforce diversity, this creates a great uncertainty in compensating the professionals.

Diversity in professionals create an environment where a group of people are working more and hard while the other group of people does not work much hours but still the compensation is on a similar level and sometimes when this compensation is varied with the group it is highly regarded as the inequality.

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Related Questions

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is: Multiple Choice Operating activities. Financing activities. Investing activities. In a note to the statement or in a separate schedule. Reconciliation of cash balance.

Answers

The purchase of land in exchange for common stock should be adequately reported in cash flows statement through the Schedule of Non-cash investing or financing activity.

Basically, the non-cash investing and financing activities entails use of some financial tools (not cash) to make an investment or purchase.

The examples of transaction reported as non-cash investing and financing activities is  taking out of loan or signing a note payable.

In conclusion, the purchase of land in exchange for common stock should be reported in the schedule of Non-cash investing or financing activity.

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The board of directors at Blaine Glassworks want their company's products to be of higher quality than the products of other companies in the market, and think that they are hitting this target. However, a recent survey found that customers rate the company's products as below average due to the inferior process design specifications in the company. This is an example of _____ in the GAP model.

Answers

When the survey found that customers rate the company's products as below average, this is an example of Gap 2 in the GAP model.

The Gaps model are used in the Service Delivery Process.

The Gaps model helps to understand customer satisfaction.

The Gap model are divided in GAP 1, GAP 2, GAP 3, GAP 4 and GAP 5.

The Gap 2 is one that deal with difference between the actual specification and management perception.

Hence, when the survey found that customers rate the company's products as below average, this is an example of Gap 2 in the GAP model.

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what advice is given by tom peters in the article customer first? analyse and summarize.​

Answers

Answer:

which article?

Explanation:

PLEASAE HELP ME YOU GUYS!!!!!!!!!!!!!!! 40 POINTS IF YOU ANWSER ALL!!!!

What do fear-based marketing messages and advertisements focus on? (Select the best answer.)

Question 1 options:

Threats to the company's business


The company's competitors and their prices


The bad things that will happen to people who don't buy the product


Negative changes in the market that have reduced demand for the product

Question 2 (1 point)
Jacob is a marketer at Gamer Way Video Games. He is currently working to develop four different color versions of their latest video game console. Which of the four Marketing Mix strategies is Jacob working on?

Question 2 options:

Product


Place


Price


Promotion

Question 3 (1 point)
If a product is difficult to find or only carried by high-end retailer, this adds to it's prestige. This always benefits your marketing message.

Question 3 options:
True
False
Question 4 (1 point)
Which of the following can help you evaluate the performance of your ads and other marketing strategies?

Question 4 options:

Sending out a press release multiple times


Collecting secondary data about your target market


Asking customers how they found out about your company or product


Asking competitors what they think of your advertising strategy

Answers

Answer:

1. threats to the company

2. is product

3.true

4. sending out press release

Calculate the present value of an asset worth $2,000 four years from now if the interest rate is 6 percent. Multiple Choice $2,480 $2,524.95 $1,520

Answers

The present value of the asset worth $2,000 four years from now is $1,584.19.

The formula for the present value is F*(1 + r)^-n

Given information

Future value = 2000

r = 6%

n = 4%

Present value = $2000*(1+6%)^-4

Present value = $2000*0.792094

Present value = $1584.187

Present value = $1,584.19

Hence, the present value of the asset worth $2,000 four years from now is $1,584.19.

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XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 44,000 shares for cash. On January 1, 2021, XYZ issued 16,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 6% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2021, XYZ paid the regular annual dividend on the preferred and common stock. Net income for the year was $270,000. Required: Calculate XYZ's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

Answers

The XYZ Company's basic earnings per share are $0.71, while the diluted earnings per share are $0.72.

Data and Calculations:

Outstanding Common stock shares on Dec. 31, 2020 = 200,000 shares

July 1, 2021, Issuance of 44,000 shares

Total outstanding common stock

January 1, 2021, Issuance of 16,000 convertible preferred stock

Par value of preferred stock = $100 per share

The Dividend rate of preferred stock = 6%

Convertibility of preferred stock = 8 common shares

Net income = $270,000

Preferred dividend = $96,000 ($1,600,000 x 6%)

Earnings for common stockholders = $174,000 ($270,000 - $96,000)

Basic earnings per share = (Net income - Preferred Dividend)/244,000

= ($174,000)/244,000

= $0.71

Convertible Preferred into Common stock = 128,000 (16,000 x 8) shares

Total shares = 372,000 (244,000 + 128,000)

Diluted earnings per share = $270,000/372,000

= $0.73

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What is one way to earn more money through Social Security?
A. Work part time rather than full time.
B. Retire as soon as you can collect Social Security.
C. Delay retirement until age 70.
D. Start collecting Social Security at 62.

Answers

Answer:

The answer is C

Explanation:

The longer you wait to collect SSI the larger the amount will be due to the fact you have paid in more.

Answer:

c

Explanation:

In the long run, a. inputs that were fixed in the short run remain fixed. b. variable inputs are rarely used. c. inputs that were fixed in the short run become variable. d. inputs that were variable in the short run become fixed.

Answers

Eventually in the long run in a firm, the inputs that were fixed in the short run become variable.

In a firm production, the factor of production including (land, capital entrepreneurship) are fixed in short run whereas, only labor factor is variable in the period.

But when the firm is in long run, all factors of production and costs are already variable.

Hence, the Option C is correct because in the long run in a firm, the inputs that were fixed in the short run become variable.

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Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 5.00%, and the Federal Reserve wants to increase the money supply by $35.00 million, the Fed would need to make an open market purchase of $ __________ million. (Insert your answer in millions, and round to two decimal places.)
Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 5.00%, and the Federal Reserve wants to decrease the money supply by $75.00 million, the Fed would need to make an open market sale of $ _________ million. (Insert your answer in millions, and round to two decimal places.)
Suppose that banks decide to hold excess reserves. In order for the Federal Reserve to change the money supply by the same amounts as in parts 1 and 2, it would need to make
Choose one: ______
A. a smaller open market purchase but a larger open market sale.
B. a larger open market purchase and a larger open market sale.
C. a smaller open market purchase and a smaller open market sale.
D. a larger open market purchase but a smaller open market sale.

Answers

The Fed would need to make an open market purchase of $1.75 million.

The Fed would need to make an open market sale of $3.75 million.

If the banks hold excess reserves, the Federal Reserve would make a larger open market purchase but a smaller open market sale.

The policies undertaken by the Central Bank of a country is known as monetary policy.

Types of monetary policy

Expansionary monetary policy: these are policy steps taken to increase the supply of money in an economy. An example is an open market purchase.

Contractionary monetary policy: these are policy steps taken to decrease the supply of money in an economy. An example is an open market sale.

Amount of open market purchase = targeted increase in money supply / money multiplier

Money multiplier = 1 / reserve requirement

1/ 0.05 = 20

$35 million / 20 = $1.75 million

Amount of open market sale = $75 million / 20 = $3.75 million  

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A major advantage of the corporate form of ownership is ______. Multiple choice question. unlimited legal liability ease of formation limited life limited legal liability that corporate earnings aren't taxed until they are distributed to owners as dividends

Answers

The major advantage of the corporate form of ownership is limited legal liability which means that the owner is limited to liability up to the tune of the amount that he invested in the company.

The corporate form of ownership means a business/organization that is operating as a legal entity, that is, it is run separate from the parties who own it.

In other word, the corporation which operates as legal entity is created for purpose of operating for profit for individuals, stockholders, shareholders etc

Some advantages of corporation includes

Owners has limited liability.The easy transfer of ownership.The corporations usually lasts forever.

In conclusion, the major advantage of the corporate form of ownership is limited legal liability which means that the owner is limited to liability up to the tune of the amount that he invested in the company.

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Marcela heard her manager loud and clear: Marcela needed to be more careful in her work or she wouldn’t have a job. Marcela ______________ to her manager, saying, "I will definitely make fewer errors from now on."


a. selected a channel

b. decoded a message

c. gave feedback

Answers

Answer: Marcela decoded a message to her manager, saying, "I will definitely make  fewer errors from now on."

Marcela selected a channel to her manager, saying, "I will definitely make fewer errors from now on."

Marcela gave feedback to her manager, saying, "I will definitely make fewer errors from now on."

Explanation: The one that sounds better in the sentence is the correct answer the ones that sound like it doesn't fit in the sentence is incorrect.

Differentiate between Cloud computing
and Grid computing.

Answers

Answer:

Cloud computing is based on a Client-Server model. Cloud computing is a highly accessible service that utilizes centralized resources. Cloud computing is a pay-as-you-go model, which implies that customers pay for the service they get.

The second one, is a distributed computer model known as Grid Computing. Users in grid computing do not have to pay for the usage of resources in a collaborative manner.

Examples of differences between the two:Cloud computing is a client-server computing architecture, while Cloud Computing is a distributed computing architecture.Cloud computing is a centralized executive, while Grid Computing is a decentralized executive.In Cloud Computing, resources are used in centralized pattern. While in Grid Computing, resources are used in collaborative, shared pattern.Cloud Computing is more flexible than Grid ComputingIn Cloud Computing, the users pay for the use. Vice versa that is not the case.Cloud Computing is a high accessible service, while Grid Computing is a low accessible service.Cloud Computing can be accessed through standard web protocols, white Grid Computing is accessible through grid middleware.

Beacon Petroleum purchased an operational oil well for $8 million and expects to extract 16 million barrels over the 10-year life of the
well. Beacon estimated the well's salvage value to be zero. What is the firm's cost of goods sold for year 1 if it extracts 2.5 million
barrels of oil and sells 2.0 million barrels of oil?
O $1.00 million
O $1.25 million
O $0.25 million
O $2.25 million

Answers

Answer:1.00 million

Explanation:

A manufacturer of fine pens produces in two plants. The total cost of producing in
the first plant is given by
T C1 = y12 + 100.
The total cost of producing in the second plant is given by
TC2=y23 +200. 3
In these cost functions, y1 corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm is producing 60 fine pens. If the firm is minimizing costs, how many pens is it producing in the first plant?

Answers

If the manufacturer of the fine pens is minimizing costs, it will produce the 60 pens at the first plant, incurring a total cost of $3,900, which is detailed as follows:

Variable costs = $3,600 (60 x 60)

Fixed costs at first plant = $100

Fixed costs at second plant (opportunity costs) = $200

Data and Calculations:

Total production cost in first plant = TC1 =  y₁²+ 100.

Total production cost in second plant = TC2=y₂³ +200

Where:

y₁ = number of pens produced in the first plant

y₂ = number of pens produced in the second plant

Total cost of producing at the first plant = $3,900 (60² + 100) + 200

Total cost of producing at the second plant =  $216,200 (60³ + 200)

Thus, if the firm produces 60 fine pens, and wants to minimize costs, it will produce the 60 fine pens at the first plant with a total cost of $3,900 (60² + 100) + 200, instead of producing the 60 fine pens at the second plant with a total cost of $216,200 (60³ + 200) or even any part of the fine pens.

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Since graduating college, you have worked in the promotion department at the headquarters of a national hospital chain. Because of your excellent record, you’ve now been given a high-profile, challenging new job: manager of promotion for Mercy Health, an old city hospital extensively renovated and upgraded to compete with suburban health care institutions. It won’t be easy, as your budget is tight. Moreover, you’ve learned that patient and revenue numbers at Mercy haven’t increased despite months of advertising its state-of-the-art acute care facilities as well as its innovative, award-winning Wellness Center.
Right off the bat, you must make a fundamental and tricky choice: What is the correct promotion objective? Your past experience has been with brand-new hospitals, which clearly need promotion to build awareness that they exist. But this institution isn’t new, so you could reasonably focus either on stimulating demand, or on encouraging trial.
Demand stimulation might be appropriate if prospective patients—or referring physicians—aren’t clear about how Mercy Health stacks up against competition. You must think about the feedback from previous advertising: Did it succeed in differentiating your product?
Encouraging trial would be the better choice if people know how Mercy compares to alternatives but must be nudged to act on that knowledge. Dr. Wills, your medical advisor, reminds you that this approach could be particularly effective with physicians who routinely refer patients to other hospitals and need some incentive to change their habits.
Which objective should you choose?
Encouraging trial
OR
Stimulating demand

Answers

The ideal objective, analyzing the scenario of the question, is to encourage trial, because in this way the consumer could use Mercy health's services and generate their own perception about the benefits of the hospital in relation to its competitors.

This strategy is more efficient when Mercy knows what the differentials are, as this way potential customers are also able to perceive the benefits of Mercy's installations and prove the institution's differentials from real experience.

Therefore, in this case, stimulating demand would not be an effective approach, as a previous publicity of the company that did not achieve the necessary achievements has already been carried out, that is, it was unable to differentiate its product and increase the number of patients and revenues of the company.

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If an economy's GDP falls, then it must be the case that the economy's a. income and saving both fall. b. income falls and expenditure rises. c. income and expenditure both fall. d. income falls and saving rises.

Answers

When the income and expenditure both fall, then, it is likely that the economy's GDP will falls.

Basically, the economy's GDP refers to the total of all value added created in an economy in a particular period,

So, when income and expenditure of an economy falls, then, it is likely that the economy's GDP will falls consequently.

Therefore, the Option B is correct because it is likely that the economy's GDP will falls.

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The type of leadership most appropriate when major changes are needed in an organization would be: Group of answer choices transactional transformational path-goal managerial grid task-centered

Answers

The name which is given to the type of leadership which is most appropriate when major changes are needed in an organization would be transformational leadership.

According to the given question, we are asked to state the type of leadership which would be best suited when there is a need to effect major changes in an organization.

As a result of this, we can see that the name of this type of leadership is the transformational leadership as the leader pushes the workers to go beyond their self interests to see a change.

The other options are not appropriate for major changes as they are more concerned with the satisfaction of the workers rather than getting major changes.

Therefore, the correct answer is option A

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Suppose that in a country with a closed economy, income is 256, consumption is 149, investment is 63, taxes are 78, and transfer payments are 23. What is the value of public savings

Answers

The value of public savings is 55

Public savings is government revenue less government spending. Government revenue source is usually taxes. Government spending includes transfer payments and amounts expended on public projects.

Public savings = taxes - transfer savings

78 - 23 = 55

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Simko Company issued $680,000, 5-year, 5 percent bonds on January 1, 2021. The bonds were issued for $620,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2021, and (b) the payment of interest on December 31, 2021.

Answers

The Simko Company's Journal Entries to record the following transactions are as follows:

a) Bond Issuance on January 1, 2021:

Debit Cash $620,000

Debit Bonds Discount $60,000

Credit Bonds Payable $680,000

To record the issuance of bonds at a discount.

b) Payment of Interest on December 31, 2021:

Debit Interest Expense $46,000

Credit Discount Amortization $12,000

Credit Cash $34,000

To record the payment of interest and amortization of discount.

Data and Calculations:

Bonds Face value = $680,000

Bonds Proceeds = $620,000

Bonds Discounts = $60,000 ($680,000 - $620,000)

Maturity period = 5 years

Coupon interest rate = 5%

Interest payment = annually on December 31

Amortization method = straight-line

Annual amortization = $12,000 ($60,000/5)

December 31, 2021:

Cash payment = $34,000 ($680,000 x 5%)

Discount amortization = $12,000

Interest Expense = $46,000 ($34,000 + $12,000)

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Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $400,000, 6%, 8-year installment note to the seller. Payments of $5,257 are required at the end of each month over the life of the 8-year loan. Each monthly payment of $5,257 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.
Required: 1. Complete the first three rows of an amortization schedule.
Required 2&3. Record the purchase of land with the issuance of a long-term note payable on November 1, 2022, and the first two payments on November 30, 2022, and December 31, 2022, and calculate the remaining balance of the note payable as of December 31, 2022. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) then record the balance
Required 4. The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $40574. How would the remaining balance of the note payable be reported in the balance sheet as of December 31, 2022?

Answers

1. The completion of the first three rows of a monthly amortization schedule is as follows:

Monthly Amortization Schedule  

           Beginning            Interest         Principal       Ending

            Balance             Payment      Repayment      Balance

1      $400,000.00      $2,000.00      $3,257.00      $396,743

2      $396,743.00        $1,984.00      $3,273.00      $393,470

3      $393,470.00        $1,967.00      $3,290.00      $390,180

2&3. Journal Entries:

November 1, 2022:

Debit Land $400,000

Credit Note Payable $400,000

To record the issuance of the note payable for the purchase of the land.

November 30, 2022:

Debit Interest Expense $2,000

Debit Note Payable $3,257

Credit Cash $5,257

To record the first interest payment.

December 31, 2022:

Debit Interest Expense $1,984

Debit Note Payable $3,273

Credit Cash $5,257

To record the second interest payment.

3. The remaining balance of the note payable as of December 31, 2022, is $393,470.

4. In the balance sheet as of December 31, 2022, the remaining balance of the note payable ($393,470) will be reported under Current Liabilities of $40,574 and Long-term Liabilities of $352,896.

Data and Calculations:

Note payable = $400,000

Interest rate = 6% per annum

Maturity period = 8 years

Monthly installmental payment  (interest and principal inclusive) = $5,257

Bal;ance of the Note Payable

November 1, 2022: Note Payable                $400,000

First two repayments in Nov and Dec. 2022 = 6,530 ($3,257 + $3,273)

Balance as of December 21, 2022                393,470

Repayments from Jan. 1 to Dec. 2023            40,574

Balance as of December, 2023                    352,896

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he following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour $ 0.50​
Actual variable overhead $ 96,000​
Budgeted variable overhead rate per machine hour $ 4.00​
Actual fixed overhead $ 15,000​
Budgeted hours allowed for actual output achieved 41,000​
Based on this information, the total overhead variance is:
a $5500 unfavorable.
b $73,500 unfavorable.
c $73,500 favorable.
d $68,000 favorable.
e $5500 favorable.

Answers

Answer:

A) $2,000 favorable

Explanation:

Actual total variable overhead = $ 73,000

Actual total fixed overhead = $ 17,000

Budgeted variable overhead rate per machine hour = $ 2.50

Budgeted total fixed overhead = $ 15,000

Budgeted machine hours allowed for actual output = 30,000

Budgeted variable overhead = $ 2.50 x 30,000 = $ 75,000

Variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Variable overhead variance = $ 75,000 - $ 73,000 = $ 2,000

Since the actual value is under the budgeted value, the variable overhead variance is $2,000 favorable.

A retirement account in which investments are not tax-deferred but can be
withdrawn tax-free is called a
A. 401(k)
B. Roth IRA
O C. SEP IRA
O D. traditional IRA

Answers

Answer:

Roth IRA

Explanation:

A Roth IRA is a form of a retirement plan that does not permit assets to grow tax-deferred but permits tax-free withdrawals. Therefore, the correct answer is option b. Roth IRA.

With its tax-free growth and withdrawals, increased flexibility, and potential for higher profits, a Roth IRA is an effective tool for retirement savings. A Roth IRA's tax-free growth and withdrawals are one of its main advantages, which can be a big plus for investors who anticipate being in a higher tax band in retirement.

Investors have more freedom and control over their retirement funds because Roth IRAs do not have mandatory minimum withdrawals. They are free to keep their funds in the account indefinitely.

The fact that Roth IRAs do not have the same income restrictions as standard IRAs is another benefit of them. This makes Roth IRAs an appealing alternative for high-earners who might not be qualified for other types of retirement accounts because investors can contribute to one regardless of their income level.

Therefore, the correct answer is option b. Roth IRA.

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Lewis is responsible for all installation activities at a large utility company. He would be considered a _______ manager.

Answers

Based on the job description of Lewis, we can infer that he is a staff manager for the company.

A staff manager:

Oversees the activities of a unit of the business Is in charge of a team or department that maintains company services

Installing various tools and equipment for utilities is an activity that supports a utility company and Lewis is in charge of the department that does this. He therefore fits the definition of a staff manager.

In conclusion, Lewis is a staff manager.

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It is better to go to banks instead of family and friends for business loans because ______. (Select all that apply)

Answers

It is better to go to banks instead of family and friends for business loans because;

Banks can assist the business in analyzing problems.

Loans from family can hurt family relationships.

One of the primary reasons why financial institutions such as banks are established is to grant loans to its customers.

Banks assist people make sound financial decisions whilst also analysing their business needs such that the loan borrowed would be properly utilized.

loans from family can hurt relationships because such loans are based on trust and once the borrower is not able to payback as at when due, then such could hurt family relationships.

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the current price of a stock is 200 if a coll option on this stock has a strike price of 201 the call is

Answers

The call in this scenario is known as Out of the money (OTM).

Out of the money is when an option has no intrinsic value but rather, has an extrinsic value.

Here, the current stock price is below the strike price of 201,then, we say that the call is out of money.

A call option is called Out of the money when the underlying price is trading below the strike price of the call.

Hence, the call in this scenario is known as Out of the money (OTM)

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what happen when unity is not there?​

Answers

if there is no unity in a shared system, then diversity can become chaos.

Answer:

without unity there's no growth no integrity no freedom and definitely no patriotism

TB MC Qu. 11-59 (Static) A limitation of the internal rate of return... A limitation of the internal rate of return method is that it:

Answers

Limitations of the internal rate of return are:

A project can have more than one internal rate of return.It fails to reflect varying levels of risk over a project's life.

The internal rate of return is a capital budgeting method.  It is the discount rate that equates the after-tax cash flows from an investment to the amount invested.  

If the internal rate of return is greater than the required return of the project, the project should be accepted. If this is not the case, the project should be rejected.

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Homework help

The acronym used for the process of setting goals is..

O ACHIEVE
O OUTCOME
O GOAL
O SMART

Answers

Answer:

SMART

Explanation:

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Since the features and functions of complex products like CRM or ERP are not easy to identify, ________ is a major task when implementing enterprise systems.

Answers

Since the features and functions of complex products like CRM or ERP are not easy to identify, gap identification is a major task when implementing enterprise systems.

Subprime lending is thought to be a contributing factor to the recent housing bubble. Which is an example of subprime lending

Answers

Considering the recent housing bubble analysis, the example of subprime lending is Bradley is a first-time homebuyer who does not have enough money for the usual 20% required for a down payment. Nonetheless, a bank offers Bradley a loan because his income is sufficient and home prices have increased.

This is because subprime lending is a type of lending whereby the lender lends money to borrowers with low credit ratings.

Also, it should be noted that Above-average interest rates characterize subprime lending.

Given that Bradley can not afford the usual 20% required for a down payment, this shows he is a borrower with low credit ratings.

Hence, in this case, it is concluded that the correct answer is option A.

The available options are the following:

A. Bradley is a first-time homebuyer who does not enough money for the usual 20% required for a down payment. Nonetheless, a bank offers Bradley a loan because his income is sufficient and home prices have historically increased.

B. Jurgen wants to purchase a home and is hoping to minimize his monthly mortgage payments. The bank offers Jurgen an adjustable rate loan which has a lower initial rate but will potentially increase in the future.

C. Chris is a real estate tycoon. He owns many homes and apartment complexes. Because he owns so many properties, he is particularly vulnerable to fluctuations in the real estate market. His bank is willing to loan him more money despite this risk.

D. Vincenzo does not have sufficient income to afford the payments on the mortgage for which he is applying. However, Vincenzo\'s older and wealthier girl friend has agreed to co-sign the loan. The bank agrees to loan Vincenzo more than he can afford to repay because of existence of his co-signer.

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