Question

Your neighbor asks you to invest $500 in her new business. You want to invest but are concerned because your neighbor has not had any business experience. How can you offset your risk?
A. Ask for a high interest rate in exchange for the loan.
B. Invest your $500 in a certificate of deposit.
C. Use the $500 to open a savings account.
D. Lend you neighbor the $500 and keep your fingers crossed.

Answer 1

@EvonHowell
@Chooch146
@help123please.

Answer 2

well what can you get rid of right away?

Answer 3

lol def D and A?

Answer 4

Well we can get rid of you for starters!!!! LOL! im totally jk:P

Answer 5

omg chooch?? lol

Answer 6

lol sorry i just had to it was funny!!:D

Answer 7

and mean lol

Answer 8

but i need help:( i gotta pass

Answer 9

ahaha i was jk i dont even know him...and i think it is a but im not sure.

Answer 10

I'd say D but not sure about A . chooch was that for me or unicorn granted that was kinda funny still harsh LOL :)

Answer 11

^^^^^ lmao

Answer 12

Get rid of D!

Answer 13

lol i think mostly you....but im sorry i wasnt trying to be mean or anything:P

Answer 14

and b

Answer 15

yeah thats right chooch can be nice :O

Answer 16

A. You offset your risk by taking a higher interest rate on your loan.

Options B and C do not offset the risk; they avoid it completely. Option D does not offset the risk; it accepts it foolishly.

At least, that is the answer your instructor wants. I am very careful about the use of words, believing that words have precise meanings. I would not use the word, invest, to describe a business loan. When asked to invest in a business, I would consider it to mean taking an equity position. Although your investment portfolio may contain some loans, the loans are considered investments of your savings, but what part of your savings is invested in loans is not invested in businesses. That is to say, Your investment in a loan is akin to an investment in a CD, but from your friend's perspective you are not an investor, merely a creditor, no different from any other person to whom he owes debts.

Since the question is structured in a personal form with the use of pronouns asking about my preferences rather than general expectations, I, personally, would invest the $500 in an equity stake in the business and insist on the rights to participate in management decisions, to offer accounting and finance advice, and to demand a buy-or-sell option at any time.

Answer 17

It's alright yes get rid of B

So whats the logical answer Imma say A.

Answer 18

thanks!:P

Answer 19

The Answer is A.

Answer 20

yay!!!!!! thanks guys i thought a but i just wanted to checklol i do that alot :P i dont know how to give the medal too :(

Answer 21

Click best response. :)

Answer 22

Omg @Chooch146 You Googled that and posted.

Answer 23

lol

Answer 24

Oh geeze imma take that medal back lol

Answer 25

That's not allowed here.

Answer 26

lol yesh i did i was going to tell you!

Answer 27

its not!!!:OOO
i didnt know that...i guess i should read that policy again!

Answer 28

You should have actually told the source,This is Plagarism.

Answer 29

chooch lmao!

Answer 30

but i chose a in the first place anyways. well i have to go tty later guys bai!!!

Answer 31

*Shakes Head* @uri glad you noticed that cause I sure didn't.

Answer 32

Hey don't run from ambi's LOL

Answer 33

chooch left no more drama for her LMAO

Answer 34

fine here is the site full credit to the site!!
http://www.debtordebt.com/forum/your-neighbor-asks-you-to-invest-500-in-her-new-business-you-want-to-invest-but-are-concerned-because-your-t107163.html

Answer 35

i dont like drama!!:P

Answer 36

Plagiarism*

Answer 37

^^^^^Chooch ur awesome lol

Answer 38

Please close the question. :)

Answer 39

xD.

Answer 40

ok lol but thanks again guys

Answer 41

Your Welcome.

Answer 42

...is this still considered plagiarism...even if i put the site down?! o_O

Answer 43

No

Answer 44

:P ok good!

Answer 45

What does a mutual fund do?
A. invests the savings of many investors

B. makes loans to banks

C. borrows money to lend to its members

Answer 46

Joanie takes out a loan from a finance company in order to buy a new car. The following table shows the terms of the loan. What would happen if Joanie put the same amount of money in her savings account, at 2 percent interest, for 48 months?
A. She would save the same amount of money that she spends on the loan

B. She would earn less from her savings account than she spends on the loan.

C. She would earn more from her savings account than she paid on the loan.

D. She would owe more on her car and would not pay off the loan.