1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ddd [48]
3 years ago
7

Leverage implies that a company a.contains debt financing. b.has a high current ratio. c.has a high earnings per share. d.contai

ns equity financing.
Business
2 answers:
andrey2020 [161]3 years ago
7 0

Answer:

The correct answer is letter "A": contains debt financing.

Explanation:

Leverage is when an investor or business makes use of borrowed money in an attempt to increase an investment's rate of return. Leverage often is used by businesses and individual investors to boost the profits they can make. Leverage is calculated best by using the debt to equity ratio (total debt by total equity).

Juliette [100K]3 years ago
5 0

Answer:

a.contains debt financing

Explanation:

Company activities are sponsored through two sources namely;Equity and debt. Equity is the fund available to the business from the owners of the business while debt refers to fund from 3rd parties.

A company is said to be geared when it has some element of debt financing. This is the same as leverage. Hence Leverage implies that a company contains debt financing

You might be interested in
Look at the graph. The retailer decreased the price of green glass ornaments to $10. Which of these would occur?
elena55 [62]
B.. I might be wrong tho. Lol 
6 0
4 years ago
Read 2 more answers
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as neede
bezimeni [28]

Answer:

1. 20%

2. 25.20%

3. 24.00%

Explanation:

1. The computation of return on investment is shown below:-

Return on investment = Operating income ÷ Average operating assets

= $70,000 ÷ $350,000

= 20%

2. The computation of return on investment (ROI) is shown below:-

Return on investment = Operating income ÷ Average operating assets

= ($70,000 + $18,200) ÷ $350,000

= $88,200 ÷ $350,000

= 25.20%

3. The computation of return on investment (ROI) is shown below:-

Return on investment = Operating income ÷ Average operating assets

= ($70,000 + $14,000) ÷ $350,000

= $84,000 ÷ $350,000

= 24.00%

So, we have applied the above formula.

7 0
3 years ago
It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial pol
Nesterboy [21]

Answer:

Countries by and large use export appropriations to build up their specific industry particularly the one where they believe they have a similar favourable position. The instance of Japan is the same since it likewise utilized appropriations to its recently created microchip industry which was not being grown anyplace else on the planet. A specific mechanical approach is a fruitful when the modern development is expanded and the business generally turns into a develop one because of exchange and rivalry.  

Another important condition for the mechanical arrangement to be effective is that the business can create benefits in the territory in which the nation has a relative bit of leeway. Japan experienced development of its microchip industry so the primary condition was satisfied however the last condition was not on the grounds that different nations on the planet began utilizing microchip as a ware that drastically marked down its cost and expanded rivalry so the endeavour stayed a low benefit one. This suggests the legislature must have adequate data about the Industry that it will build the benefit of the segment wherein the nation has a relative favourable position.

4 0
3 years ago
explain why a business that is small enough to be managed by one or a few people and does not require a large amount of capital
koban [17]

A business that is small enough to be run by one or a few people and does not require a large amount of capital would be good for a sole proprietorship.

This type of business structure has less bureaucracy and does not require a lot of formality to be managed, making it an ideal setting for family businesses, such as grocery stores and clothing stores.

Therefore, in a sole proprietorship, the owner is responsible for the risks inherent in the business, with greater freedom and flexibility.

Learn more about sole proprietorship here:

brainly.com/question/4442710

4 0
3 years ago
There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices? a. Tick
Papessa [141]

Answer:

b. Ticket prices will be higher because each team is a monopoly in the city. 

Explanation:

A monopoly is when there is only one firm operating in an industry. Monopoly usually have market power. They have the ability to set market prices. They usually earn economic profit in the long and short run.

Monopolies are not faced with any competition because they are the only firms operating in an industry.

Because there are usually only one major league in each town, the teams are monopolies, they have the ability to set high prices and do not face competition.

I hope my answer helps you

8 0
4 years ago
Other questions:
  • The distinction between a company mission statement and a strategic vision is that a mission statement addresses "how we are try
    15·1 answer
  • Discount loans to healthy banks, who may borrow as much as they wish from the Fed, are called:
    14·1 answer
  • PLEASE ANSWER MY QUESTION!
    15·1 answer
  • Suppose you deposit ​$1 comma 2001,200 cash into your checking account. By how much will the total money supply increase as a re
    14·1 answer
  • A common law standard known as _____ requires that the seller deliver goods in conformity with the terms of the contract, right
    9·2 answers
  • An outside supplier has offered to produce and sell the part to the company for $30.80 each. If this offer is accepted, the supe
    10·1 answer
  • Average fixed cost​ (AFC) A. rises as output rises. B. falls as output falls. C. is always fixed across all output ranges for th
    13·1 answer
  • Stockholders' equity as reported on the firm’s balance sheet = $2 billion, price/earnings ratio = 14.5, common shares outstandin
    9·1 answer
  • Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose in
    9·1 answer
  • T account charts must always have what?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!