Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
There are three main credit bureaus (also known as credit reporting agencies) servicing the United States: Trans Union, Equifax and Experian. Each bureau is independent and a competitor of each other. Because of this there could be differences between the reports of the three credit bureaus.
Answer:
The correct answer is Diversification.
Explanation:
Business diversification is the process by which an organization starts offering new products or entering new markets by acquiring other corporations or investing in new businesses. It is about growth and expansion strategies. This allows companies to attract new customers and expand their area of activity in the market.
In this way, a clothing store could expand its range of products also offering fashion accessories, such as shoes, bags or jewelry. Similarly, you could choose to enter other markets. How? Opening stores in other areas of the city, or looking for an audience with a different purchasing level. Adapting your products to the needs of new customers. To expand its scope, it would be best to open an ecommerce and sell online, with its subsequent home delivery.
The resource of production called <em>natural resources </em>includes mineral deposits underground. Only the things that man hasn't made himself, but which are given by nature, can be considered natural resources.
