The blend or mix of capital components that provide the firm with funds to invest in projects at any point in time is its capital structure
Indicate whether the statement is true or false
True
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Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
A. Direct activities. B. Indirect activities. C. Financing activities. D. Operating activities. E. Investing activities.
According to Karen Dillon, author of the HBR Guide to Office Politics, we have a tendency to surround themselves by people who ______.
A. think like we do B. think differently than we do C. are both similar to and different from us D. have different value structures than we have
Sprinter Airlines (Sprinter) needs additional aircraft to expand internationally, and it could borrow the needed funds and purchase the aircraft. This arrangement places additional debt on the balance sheet. Instead, Sprinter signs an lease agreement in which it agrees to pay the owner of the aircraft certain amounts each year for 12 years. The aircraft has an estimated service life of 18 years
Sprinter paints its name on the aircraft, uses the aircraft in operations, and makes the required lease payments. Which of the following is not true? a. Sprinter receives benefits when it uses the aircraft, not when it initially signs the lease. b. Sprinter has future benefits, not past or current benefits. c. Sprinter obtains financing for its flight equipment without showing a liability on the balance sheet. d. Sprinter has entered into an operating lease that is an executory contract. e. Sprinter has entered into an financing lease that is recorded as an asset purchase and financing transaction.
Steven Wong was an ace financial advisor. He placed millions of dollars on behalf of his clients into certain debentures of Tippett Holdings Ltd
He did not inform his clients that he received hundreds of thousands in commissions from Tippett for obtaining all this investment. On the other hand, all of his clients made money on their Tippett holdings. Can any of his clients sue Wong? A) No. They have not suffered any financial loss B) No. Wong has not given negligent professional advice C) No. Wong has not placed his own interests above those of his clients D) Yes. Wong has committed a breach of fiduciary duty E) Both A and B