Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations.
A. Sales price variability.
B. The extent to which operating costs are fixed.
C. The extent to which interest rates on the firm's debt fluctuate.
D. Input price variability.
E. Demand variability.
Answer: C
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The total assets turnover ratio indicates
a. the sales generated from each dollar of assets. b. the portion of the sales dollar left over for the common shareholders after covering all operating costs and subtracting claims of creditors and preferred shareholders. c. the portion of the sales dollar left over for the preferred shareholders after covering all operating costs and subtracting claims of creditors and common shareholders. d. the proportion of total assets, or total financing, provided by common shareholders contrasted with the financing provided by creditors and preferred shareholders. e. the proportion of total assets, or total financing, provided by preferred shareholders contrasted with the financing provided by creditors and common shareholders.
What is the supreme law of the land in the United States?
A) Federal statutes B) The UCC C) The common law D) The U.S. Constitution
Jan Murphy is in her early 30s and would like some help choosing an investment that will grow over the next 10 years. Which of the following investments would you recommend for growth?
A. Savings accounts B. Corporate bonds C. Municipal bonds D. Common stock E. Government bonds
Starting to invest early for retirement increases the benefits of compound interest.
Answer the following statement true (T) or false (F)