Which of the following statements BEST describes a balloon payment?
A. A prepayment of principal made by the borrower of a fully amortized loan.
B. The final mortgage payment that is larger than the previous installment payments and repays the debt in full.
C. A prepayment penalty charged on a conventional loan.
D. The initial payment on a graduated payment loan.
Answer: B. The final mortgage payment that is larger than the previous installment payments and repays the debt in full.
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The global strategy that enables managers to "think globally but act locally" is called the:
A. International model B. Multinational model C. Global model D. Transnational model E. All of the above
Economic order quantity formulas seek to balance _____
a. stock levels and profits b. stock levels and sales c. order-processing and order-holding costs d. stock levels, sales, and stockouts