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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.  

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In an international transaction involving a bank as a third party, the exporter ships the product after:
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Answer: the bank promises to pay on the importer’s behalf

Explanation:

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Albert decided that it was time to invest his money. he was quite excited and told his friends about his new financial venture.
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Financial venture. even his wife was supportive. albert liked a number of riskier company
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Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construct
Rzqust [24]

Answer:

COMMERCIAL TRANSACTIONS for the sale of and payment for goods.        

Explanation:

In simple words, The Uniform Commercial Code (UCC), originally released in 1952, is among a series of Uniform Laws developed as legislation with the aim of harmonising selling as well as other business activity rules throughout the United States by some of the implementation of UCC by all of the 50 states , the District of Columbia, as well as the American Territories.                        

3 0
3 years ago
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Elza [17]

Answer:

Amount of underapplied or overapplied overhead cost for the year

$97000 - Underapplied

Schedule of cost of goods manufactured for the year

Direct Material                                3885000

Direct Labor                                      60000

Overheads                                       376000

Total Manufacturing Costs             4321000

Add Opening Inventory WIP           400000

Less Closing Inventory WIP            (700000)

Cost of Goods Manufactured         4021000

Explanation:

Amount of underapplied or overapplied overhead cost for the year

Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead

$473000-$376000= $ 97000

Schedule of cost of goods manufactured for the year

<em>Direct Materials  Calculation  </em>                                  

Opening                                                      200000

Add Purchases                                         4000000

Available                                                    4200000

Less Closing Material                                 300000

Materials Consumed                                  3900000

Less Indirect Materials                                 15000

Direct Materials Consumed                       3885000

8 0
3 years ago
Read 2 more answers
What are the marketing objectives when a product is at the introduction stage?
Ede4ka [16]

Answer:

C. to create awareness, organize customer trials, and develop a market for the product

Explanation:

The introduction stage is the first one in the product life cycle. At this stage, the product has just been launched in the market. The sales growth rate is low as customers are not aware of the commodity. The business incurs losses by having the product in the market.

The marketing goal at this stage is to create awareness about this product. The business makes efforts to create demand through promotions and awareness creation. The stage is associated with heavy advertisements as the business tries to popularize and establish a market share for the product.

5 0
2 years ago
Read 2 more answers
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