The risk added by financing is small and insignificant in relation to the inherent risk in most

Question:

The risk added by financing is small and insignificant in relation to the inherent risk in most businesses. Is that statement true or false? Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

See More Books

Question Posted: Sep 13, 2012 03:58 AM

See More Questions

True or False Your personal tolerance to risk should be understood if you are considering investments such as stocks, bonds, mutual funds, and real estate.
True or false a. Financing decisions are less easily reversed than investment decisions. b. Tests have shown that there is almost perfect negative correlation between successive price changes. c. The...
In Problem indicate true (T) or false (F) 157 Sy
When a parameter is changed, does this affect the argument that was passed into the parameter?
A comparison of k = 5 fertilizers is made in a randomized block design that incorporates b = 10 fields of com. Each field is partitioned into five equal areas, and the five fertilizers are randomly...
At Farmers Dairy, a machine is set to fill 32-ounce milk cartons. However, this machine does not put exactly 32 ounces of milk into each carton; the amount varies slightly from carton to carton. It...
Describe surrogacy and the legal and ethical issues that can arise.
Elaine Jackson just had a visit from her cousin Phil. He wanted to apologize. Last year he had regaled her with stories about a small company he had discovered that had just invented a high-tech...
The 7 Domains Model is a simplified framework that company owners may use to determine whether their concept has commercial potential. The approach breaks down your concept into seven categories...
Gerry Corporation would like to expand the production of one of its product lines to enter into a new geographic market. To provide sufficient capacity, Gerry will need to purchase a new machine at a...
Explain in words the ROCE test for the advisability of adding leverage. That is, what is the test really telling us? When will it indicate a company is doing the wrong thing?
Describe generally how leverage affects stock prices. What forces are at work, driven by what effects?
Why are customers increasingly vital in the creation of innovative new products and services? How has this come about?
You are the hired for the ABC, Inc. The production manager asked you to develop a Lean Manufacturing plan to be implemented in the company. You must describe the main points of the plan and the...
Briefly summarise the processes used by the organisation to manage sales, invoicing, purchasing, payments and receipts and give at least one detailed reason for each process to show why it is...
explain the framework that have been used for the research on paper titled 'Innovations for potential entrepreneurs in service quality and customer loyalty in the hospitality industry', and explain...
Never On Time airlines' flights have been constantly delayed lately. They received several complaints from their customers. They hired you as a consultant to determine the cause(s) of the problem by...
Prof. Sandra Minolta uses a quality tool that helps to visualize a list of problems in decreasing frequency of occurrence? What tool is she using? Pareto chart Normal distribution PDCA Fish-bone...
The three bay, one-story frame consists of beams pin connected to columns and column bases pinned to the foundation in Figure P3.36. The diagonal brace member CH is pinned at each end. Determine the...
Under what conditions is the following SQL statement valid?
What tasks do maintenance staff undertake?
Using the premium schedules provided in Exhibits. How much in annual premiums would a 25-year-old male have to pay for $100,000 of annual renewable term, level premium term, and whole life insurance?...
Lilia and Mateo Navarrete are a dual-career couples who just had their first child. Mateo, age 29, already has a group life insurance policy, but Lilias employer does not offer life insurance. A...
While at lunch with a group of coworkers, one of your friends mentions that he plans to buy a variable life insurance policy because it provides a good annual return and is a good way to build...
"Managing Away Bad Habits Team Assignment Organizational Behavior IILeadership Assigned is ashort case from the exercise Managing Away Bad Habits. The task is to develop a turnaround strategy for...
"Managing Away Bad Habits Team Assignment Organizational Behavior IILeadership Assigned is ashort case from the exercise Managing Away Bad Habits. The task is to develop a turnaround strategy for...
11 The APRN unit director is working at an agency that has a high incidence of medication errors, specifically with heparin. One recent error had a patient receive twice the prescribed dose. Which...

The risk added by financing is small and insignificant in relation to the inherent risk in most

Question:

Step by Step Answer:

The statement is generally true in good times because of viewing ...View the full answer

Practical financial management

Students also viewed these Corporate Finance questions