Answer:
The correct answer is: the costs.
Explanation:
Debt financing is money borrowed to be repaid over a period of time usually as forms of credits or loans from financial institutions such as banks. The benefit of debt financing is that an organization could turn a small amount of money into a large sum. The drawback is that the money borrowed requires payment with interest regardless the organization had revenues or not.
Equity capital is the financing method of a company through stocks. The funds must not be repaid but the organization gives part to its ownership to the investors who profit from dividends.
<em>The cost of equity is higher than the cost of debt</em> because equity financing is a greater risk to the investor since stockholders eventually can take over the ownership of a firm, something that does not happen with debt financing.
Answer:
Substitute goods
Explanation:
Substitutes goods are products that can be used in place of one another. Consumers will be happy consuming either of the substitute goods. Therefore, substitute goods are similar and offer solutions to similar customer problems. Examples of substitute goods are tea and coffee.
If the price of one substitute good decreases, its demand will rise. Customers will prefer consuming that product over its substitutes due to its lower prices. The demand for other substitute goods will decrease as customers prefer the more affordable options.
Recreational boaters travelling on such water should give a wide berth and keep away from the water areas where the hunters are carrying out their activities; the boaters should be safety conscious and alert. This is necessary in order to avoid accident.
Answer:
The correct answer is (B) Income Summary
Explanation:
The income summary is a procedure that allows us to glimpse, globally, all the entries that existed in a period. It provides very valuable generalized information, which lets you know how business, work or some investment is going.
To ensure that our results are accurate, we must close all income and expense accounts, and take stock to obtain our conclusions. If the results have not been favorable, we must make the necessary adjustments so that in the next income summary we can obtain better results.
Answer:
B. Capital Rationing
Explanation:
Capital rationing is a technique used by organizations and companies whereby restrictions are placed on the projects that the organization or company can undertake or limitations on the capital that can be invested by the organization or company. This limitations are placed because the organization or company aim is directed at choosing only the most profitable investment for capital investment decision or carrying out only the most profitable projects. It involves choosing amongst alternative investment.