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
dusya [7]
4 years ago
15

Identify the statement that is incorrect. Multiple Choice Higher financial leverage involves higher risk. Risk is higher if a co

mpany has more liabilities. Risk is higher if a company has more assets. The debt ratio is one measure of financial risk. Lower financial leverage involves lower risk.
Business
1 answer:
Irina-Kira [14]4 years ago
8 0

Answer:

Risk is higher if a company has more assets.

Explanation:

All of the following statements are true and correct;

1. Higher financial leverage involves higher risk.

2. Risk is higher if a company has more liabilities.

3. The debt ratio is one measure of financial risk.

4. Lower financial leverage involves lower risk.

However, it is false and an absolutely incorrect to say risk is higher if a company has more assets.

A company having more assets would have a debt ratio less than one (1) because it has many assets to fund it's business. Thus, the company would have little or no debts and as such, it's risk portfolio is very low.

Hence, risk is lower if a company has more assets.  

You might be interested in
Willis Rusch recently purchased a 5-pound box of treats for his dog. The total purchase price was $4.87.What was the price per p
krek1111 [17]

Answer

The cost of the one pound of the box is $0.974.

Explanation:

As given

Willis Rusch recently purchased a 5-pound box of treats for his dog.

The total purchase price was $4.87 .

i.e

Cost of 5- pound box = $4.87

Thus

Price\ per\ pound = \frac{Total\ cost\ of\ 5\ pound\ box}{Total\ box}

Putting the values in the above

Price\ per\ pound = \frac{\$ 4.87}{5}

                                     = $ 0.974

Therefore the cost of the one pound of the bos is $0.974.

8 0
3 years ago
Brad has a comparative advantage in the production of a. wheat and Theresa has a comparative advantage in the production of beef
Flura [38]

Complete/Correct Question:

Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.

Minutes Needed to Make

1 Bushel of Wheat

Brad: 10

Theresa: 6

1 Pound of Beef

Brad: 12

Theresa: 10

Brad has a comparative advantage in the production of

a. wheat and Theresa has a comparative advantage in the production of beef.

b. beef and Theresa has a comparative advantage in the production of wheat.

c. both goods and Theresa has a comparative advantage in the production of neither good.

d. neither good and Theresa has a comparative advantage in the production of both goods.

Answer:

B, beef and Theresa has a comparative advantage in the production of wheat.

Explanation:

Firstly, let's define comparative advantage.

Comparative advantage can be said to be the ability to produce a product at a far lesser rate than is obtainable.

From the above question, it can be deduced that Theresa has a comparative advantage in the production of wheat going by the huge difference in the time needed to produce wheat.

On the other hand, Brad has a comparative advantage in the production of beef. This is because the time difference in the production time of wheat isn't the same with beef and as such Brad has some advantage in this regard.

Cheers.

3 0
3 years ago
Faced with a wide variety of computers to choose from, mary first eliminated all models that would not fit comfortably on her de
Marina CMI [18]
She looks for computer as ordinary home appliance. So she used standard model of choosing the things needed for everyday home use.
6 0
4 years ago
Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,800,000 shares issued; Additional Paid-i
Fittoniya [83]

Answer:

Total Stockholder's Equity is $26,276,000.

Explanation:

                Stockholders’ equity section of the balance sheet

Common Stock @ $1          $1,800,000

Additional Paid-in Capital, $1,6200,000

Retained Earnings,             $9200,000

Less: Treasury Stock          <u>$924,000</u>

Total Shareholders Equity $26,276,000

As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.

6 0
4 years ago
Which food is better?<br><br> Toast?<br><br> Jelly?<br><br> Hint: Don't choose the other...
Allisa [31]
Toast because jelly belongs on something
5 0
3 years ago
Other questions:
  • In​ 2010, domino's launched a new advertising campaign admitting that its pizzas had not tasted very​ good, but claiming that th
    9·1 answer
  • Groups perform better than individuals on a wide range of demonstrable tasks. what is a key reason why groups outperform individ
    9·1 answer
  • Consider the following hypothetical transactions of the Balance of Payments of Country A: 1. Country A's firms export to Country
    8·1 answer
  • Ted earned $150,000 during the current year. He paid Alice, his former wife, $75,000 in alimony. The couple divorced in 2016. Un
    7·1 answer
  • Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it
    7·1 answer
  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation’s Apri
    10·1 answer
  • Carpenter Inc. had a balance of $95,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Ca
    5·1 answer
  • Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Co
    14·1 answer
  • Flack Corporation, a merchandiser, provides the following information for its December budgeting process: The November 30 invent
    12·1 answer
  • If a product's demand rises as income rises, ceteris paribus, the product is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!