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]
3 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]3 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
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working a
dalvyx [7]

Answer:

b. She receives $10,000

Explanation:

Taxes owed = (1/4 of income) - $15,000.

Taxes owed = (1/4 x 20,000) - $15,000.

= 5,000 - 15,000 => -10,000

Hence, she receives $10,000 from the government.

A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.

8 0
3 years ago
The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of th
skad [1K]

Answer:

a. 480

Explanation:

The computation of the economic order quantity is given below:

EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}}  \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }

= 480 units

The carrying cost could be determined below:

= $4 × 25%

= $1

hence, the carrying cost is $1

Therefore the economic order quantity is 480

Thus, the correct option is a.

7 0
2 years ago
Checking account A charges a monthly service fee of $20 and a wire transfer fee of $3, while checking account B charges a monthl
natali 33 [55]
 the answer should be  
D. 10 
3 0
3 years ago
Read 2 more answers
One of the most widely followed stock indexes in the united states is the dow jones industrial average. this index represents
OleMash [197]
<span>Dow Jones Industrial Average (DJIA) is the widely followed and best known stock index because it is composed of companies that are under the industrial and consumer industry. The price of the stock under the Dow Jones Industrial Average is divided by divisors which are used in this index.</span>
5 0
3 years ago
2.Think of two investment opportunities and compare them to each other. Give a brief outline of what they are, how they work, an
Eddi Din [679]
So lets say we have two investment opportunities. A new convenient store in your neighborhood or a new shopping center more than 5 miles away from where you live... What would you invest in well lets look at the pros and cons of each investment. So even though the new convenient store is right around the corner from you and prices are low the new shopping center has better products, warranty and higher prices unlike the convenient store closer to you. So we have an investment budget of $1000 dollars and want to spend it wisely we need to access what has a better chance of being successful with what you put into it. So the convenient store will reach less people has a bargain price but also doesn't have security cameras. Even though the shopping center has great employees, top-of-the-line products, high security, and a great establishment but also has flaws. What are you gonna invest in,  will you take risks? My personal opinion is that I would invest in the shopping center because more people would be attracted to it because of the quality of service and products. So it would have a better probability in success and good use of my money. 
4 0
3 years ago
Other questions:
  • Where do most banks get the text to explain their calculations of interest?
    7·1 answer
  • The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated De
    11·1 answer
  • Potatoes cost Janice $1.25 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she fe
    12·1 answer
  • Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $ 450.00 and
    10·1 answer
  • Peter is a manager at a fast-food restaurant. He wants to introduce a kid's meal into the restaurant's menu. He wants to convinc
    14·1 answer
  • _______ believed that quality stemmed from "constancy of purpose," and that managers should stress teamwork,be helpful rather th
    6·1 answer
  • Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other
    6·1 answer
  • Tropical Tours reported revenue of $400,000 for its year ended December 31, Year2. Accounts receivable at December 31, Year1 and
    11·1 answer
  • Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target capital structure that is 55% debt
    10·1 answer
  • Differentiate between micro hydro power and hydro power. ​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!