If the firm's actual debt-to-assets ratio is below its target level, expansion capital should be raised by issuing equity in order to preserve the firm's borrowing capacity

a. True
b. False
Indicate whether the statement is true or false


False

Business

You might also like to view...

Horizontal cooperative advertising agreements are most likely to involve two or more competing retailers

Indicate whether the statement is true or false

Business

The entering into of nondisclosure agreements is an unethical practice that should not be tolerated by a legally astute manager

a. True b. False Indicate whether the statement is true or false

Business

Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. The company has grown by over 150 percent in the past year. Dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify the social entrepreneurship model?

A. Provide free weekly catered meals for the homeless. B. Seek investments from venture capitalists. C. Launch a social media platform for food lovers. D. Buy out his closest competitors to ensure a competitive advantage.

Business

Which of the following is an advantage of the sole proprietorship?

a. ease of starting b. unlimited liability c. ability to raise capital d. stability e. charter

Business