An increase in marginal cost of capital and the capital rationing are two arising complications of __________?
Amaximum capital budget
Bminimum capital budget
Cgreater capital budget
Doptimal capital budget
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Correct answer
D. optimal capital budget
Explanation
optimal capital budget is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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D. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
Explanation
Bond ratings represent an independent assessment of the credit-worthiness of bonds. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. relatively lower
Explanation
relatively lower is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. Partnership
Explanation
Having more than 2 owners of a business entity is called “Partnership”. Having more than seven owners of a business entity is called corporation..
Correct answer
B. Sole-proprietorship
Explanation
Sole-proprietorship is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
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C. Investing activity
Explanation
Investing activities – changes in investments and long-term assets Cash inflows: From sale of property, plant, and equipment. From sale of investments in debt or equity securities of other entities. From collection of principal on loans to other entities. Cash outflows: To purchase property, plant, and equipment. To purchase investments in debt or equity securities of other entities. To make loans to other entities..
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A. Semiannual compounding
Explanation
Semiannual compounding is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Rs. 800,000
Explanation
Assets = Liabilities + Owner’s Equity = 300,000 + 500,000 = 800,000
Correct answer
B. general obligation bonds
Explanation
general obligation bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Multiple
Explanation
Multiple is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.