Royal Caribbean Cruises would like to add an additional ship to ...

[skymedlock]

Royal Caribbean Cruises would like to add an additional ship to their fleet. A new ship will cost 1.4 billion to build. Royal Caribbean plans to use cash and a long-term loan to finance the production of the new ship. However, the current interest rate of a 900 million loan is 5, which Royal Caribbean feels is high. Which key consideration for choosing a form of financing does this example illustrate?
 A) Amount of financing
  B) Influence on company operations
  C) External factors
  D) Cost of financing
  E) Term of financing

Question 2

Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25-if the company does well. This form of compensation is classified as:
 A) a salary.
  B) an incentive.
  C) a benefit.
  D) a commission.
  E) a non-monetary form of compensation.

[josephsuarez]

Answer to Question 1

C

Answer to Question 2

B

[skymedlock]

TYSM

[parshano]

Excellent