Answer:
True
Explanation:
Once the company starts taking loans to fund its investment their financial risk starts growing which is only beared by the Shareholders not by the bond holders. This additional risk faced by the ordinary share investors means that now they will require additional return. Remember the financial risk only exist if their is the use of leverage or we can say if the financial leverage increases then the financial risk increase. And if the financial risk increases then this additional risk is only beared by the ordinary share investors. Now additional risk beared is the reason why ordinary shareholders means that this has increased the riskiness of their equity investment.
Answer:
The correct answer is Variable Cost.
Explanation:
As its name implies, the variable cost is the one that undergoes constant changes as a consequence of the production process itself, represented in the behavior of demand. Its increase is directly related to the production of more raw material, which can happen at certain times. Otherwise, due to external conditions, decreases occur in order to serve the market effectively.
Answer:
D. every type of business in every industry.