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lawyer [7]
2 years ago
8

It is _______ for a company to issue equity than debt; it is ________ for an investor to buy equity in a company than debt in th

e same firm.
Business
1 answer:
viva [34]2 years ago
6 0

Answer:

It is <u>safer</u> for a company to issue equity than debt

It is <u>riskier</u> for an investor to buy equity in a company than debt in the same firm

Explanation:

If company issues debt that it has to make fixed interest payments, thus even if company is making losses, it has to pay interest which is not in case of equity. Hence, it is riskier option for the company to raise debt.

On the other, if investor in debt, then he will get fixed interest, thus debt option is relatively cheap than equity for investor

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What does Rose argue should be the last part of a presentation to the VEnture capitalist?
goldfiish [28.3K]

Answer:

Rose argues that the last part of a presentation should wrap it up and give the final pitch.  One should highlight the crucial points as to why a Venture Capitalist would want to invest in your business,

Explanation:

4 0
2 years ago
Tracing transactions through the information system relevant to financial reporting. inquiring of entity personnel. assessing in
borishaifa [10]

Tracing transactions through the information system relevant to financial reporting.

Financial reporting is the process of documenting and speaking monetary activities and performance over particular time intervals, usually on a quarterly or every year basis. corporations use monetary reports to prepare accounting data and document on contemporary economic status.

Financial reporting includes the subsequent: external economic statements (earnings announcement, statement of comprehensive earnings, balance sheet, declaration of coins flows, and declaration of stockholders' equity) The notes to the financial statements.

Financial reporting is crucial for management to make informed business decisions primarily based on information of the company's financial health. potential investors and banks may also use your enterprise's financial reporting to decide if they need to make investments or loan you money.

Learn more about Financial reporting here: brainly.com/question/28065899

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4 0
1 year ago
What is consumer vigilance? Select the best answer from the choices provided. A. being aware of risks to consumers B. being fear
Nimfa-mama [501]

Answer:

the right to be informed. the right to be safe. the right to choose. the right to be heard. avenues for redress ofconsumer grievances (e.g., state and federal agencies, consumer protection laws, private groups such as Common Cause, Better Business Bureau).

Explanation:

A. being aware of the risks to consumer

7 0
3 years ago
In response to accounting scandals and the collapse of Enron at the turn of the century, the U.S. Congress passed the Sarbanes-O
Klio2033 [76]

Answer:

  1. b. Financial scandals and corporate fraud.
  2. b. By legally requiring companies to certify the truth of their statements to investors.
  3. d. The cost and difficulties of compliance.

Explanation:

After the U.S. was rocked by the financial scandals and corporate fraud of companies like Enron and WorldCom, the U.S. Congress enacted the Sarbanes-Oxley Act to mitigate the risk of such ever occurring again.

The Act involves making the management personally liable for the accuracy of the statements by legally requiring companies to certify the truth in their statements to their investors.

While this seems easy enough, it requires a lot of information gathering which has left companies paying millions to comply.

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2 years ago
Most economists believe the principle of monetary neutrality is a. relevant to both the short and long run. b. mostly relevant t
Trava [24]

Answer:

d. mostly relevant to the long run.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

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I. Medium of exchange.

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III. Store of value.

The principle of monetary neutrality typically based on the idea that changes in any stock of money would affect only nominal variables such as exchange rate, wages and price in the economy of a particular country.

Most economists believe the principle of monetary neutrality is mostly relevant to the long run.

4 0
2 years ago
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