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
Which financial component is a mandatory deduction from your gross pay? A. sales tax B. social security tax C. health insurance
mamaluj [8]

Employers are required to take a deduction for social security taxes.

3 0
3 years ago
Read 2 more answers
A firm will find it profitable to hire workers up to the point at which their:
patriot [66]

Answer:

A

Explanation:

marginal resource cost is equal to their MRP.

7 0
3 years ago
An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers compensatio
Mariana [72]

An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans

<h3>What is Self-Insurance?</h3>

This refers to the type of insurance for oneself or one's interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.

Hence, we can see that An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans

Read more about self-insurance here:

brainly.com/question/13678242

#SPJ1

6 0
2 years ago
Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry mad
HACTEHA [7]

Answer:

Dr Cash $92,811

Cr Notes Payables $92,811

(Being the proceeds and issuance of note

Explanation:

Annual rate = 12%

Interest for 9 months will be:

9/12 x 12% = 9%

So disbursal is 9% x $92,811

= $8,353

Principal (borrowed money) is $92,811.

The loan was disbursed on January 1. So it's only the proceeds from the loan which will be recorded on this date. Repayment will start at later date.

Therefore, The entry made by Guarantee Company on January 1 will be:

January 1

Dr Cash $92,811

Cr Notes Payables $92,811

(Being the proceeds and issuance of note)

4 0
3 years ago
Darin was promoted, but it meant leaving the bustling city life he loved and moving to a different state in a quiet part of the
Papessa [141]
A is The answer

Hopefully this help
4 0
3 years ago
Other questions:
  • ​Finishing the construction of a home two days after the contract called for completion (no injury occurs) most likely will be c
    10·1 answer
  • Sb-33 what does a regulatory buoy with a diamond symbol indicate
    9·2 answers
  • Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a r
    14·1 answer
  • In preparing closing entries
    15·2 answers
  • The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations
    8·1 answer
  • Please follow my channel on y0utube
    5·1 answer
  • Centrifuge is a device used to separate solid components .true or false​
    15·1 answer
  • Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $75 a share with an annual dividend of $6.00 a sha
    15·1 answer
  • Please, help, I will award brainliest!
    13·1 answer
  • Question 6 of 10
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!