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harina [27]
4 years ago
15

The more conservative a firm's management is, the higher its total debt to total capital ratio [measured as (Short-term debt Lon

g-term debt)/(Debt Preferred stock Common equity)] is likely to be. a. True b. False
Business
1 answer:
PtichkaEL [24]4 years ago
8 0

Answer:

False

Explanation:

The conservative approach is that the firm has greater level of working capital investment than the competitor or industry average. So to fund the higher level of working capital the company has a set of policy and targets related to the level of debt level which means the company will not be willing to borrow further money if their borrowing exceeds the set limit or benchmark. They might use the equity instruments (Preferred stock or Common equity) to fund the higher level of working capital.

So their no absolute argument whether the denominator will increase or the nominator will increase in the Total debt to capital ratio. Hence the statement is false.

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A business' last line of defense against risks that cannot be controlled or avoided by other risk management practices is this t
natima [27]

Answer: A business continuity plan

                           

Explanation: Business continuity planning refers to the procedure involved in creating a risk reduction and recovery scheme for a corporation from possible hazards.

The strategy helps to ensure the protection of management and resources and the ability to operate rapidly in the event of an emergency. The BCP is usually designed in ahead of time and includes insight from relevant parties and staff.

BCPs are an essential part of any undertaking. Threats and disturbances result in revenue shortfall and increased costs, resulting in a decline in productivity. And companies can not rely solely on insurance since it does not cover all the costs and the clients that move to the contest.

5 0
4 years ago
What does it mean when gylcogen is broken down to glucose molecules?
Makovka662 [10]
It means it has become sugar
3 0
3 years ago
If interest rate on 1-year unsecured loan is 4.5%p.a. The inflation rate is 3.2% this year. What is the real interest rate?
Alexeev081 [22]

Explanation:

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8 0
3 years ago
In 2010 the United States posted a current account deficit of -$471 billion. The bulk of the negative value came from: A. a good
Brut [27]

Answer:

A. a goods trade deficit

Explanation:

The current account represent the trade balance (export less import) plus

the net income (person receiving interest, rent or wages from aboard less person and companies paying foreingers) and

the direct payment. ( remittances from wroker to US)

As the US is one of the most open-economies in the world the mayority of this deficit comes from import of good and services from aboard.

Another factor, is that US company invest around the world thus, the net income should be positive.

And becuase the US economy is strong as opposite of Mexico or other Latin America countries, the average US employee abroard will not send their wages to support his family.

Thus, we should ensure the deficit comes from a negative trade deficit.

6 0
4 years ago
Which C of the four C’s of marketing associates with the promotion element of the marketing mix?
Alex17521 [72]

The 4 C's of the marketing mix are: consumer wants and needs/value, cost, convenience, and communication. Communication is the aspect that aligns with promotion when relating the 4 C's to the 4 P'S of marketing. When you promote a product you are using commication to get the product promoted to the consumer. You need to be able to reach your audience so that you can actively promote the production. To communicate you need to have your information together, know how to tailor your pitch, and make sure your audience connects with you and your product.

7 0
4 years ago
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