Consider the Following Scenario When Answering the Following Questions

question 4

Multiple Choice

Consider the following scenario when answering the following questions:
Your friend Jon is starting a new photography business that specializes in photographs of Central Park in New York City. Because his business is new and risky, he is unable to obtain a loan from the local bank. On June 21, 2017, you agree to pay a price of $4,000 for a bond from Jon. You will receive $5,000 in return on June 21, 2018.
-In the scenario,the date June 21,2018,is known as the

• A) par value.
• B) maturity date.
• C) real value.
• D) ending value.
• E) nominal value.

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Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced by the business, such as rent for a building.

Managerial Levers

Tools or methods used by managers to influence the performance and direction of their organization.

Large Lots

Refers to the practice of bulk buying or producing goods in significant quantities to achieve economies of scale.

Fixed Cost

Expenses that do not change with the level of goods or services produced over the short term.