Discuss one advantage of issuing bonds versus borrowing money from a bank.
What will be an ideal response?
Bonds usually have longer terms than notes issued to banks. While typical bank loan terms range from 2 to 5 years, bonds normally have 20-year terms to maturity. Longer terms to maturity allow companies to implement long-term strategic plans without having to worry about frequent refinancing arrangements. In addition, bond interest rates may be lower than bank interest rates. By issuing bonds directly to the public, companies can pay lower interest costs.
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Managerial functions include important duties such as being in charge of and responsible for various goals and functions in an organization, while leadership functions include _________________ followers as opposed to subordinates.
a. influencing and guiding b. being in charge and delegating tasks to c. speaking in front of d. having the job title of manager or supervisor in charge of the
Under the cash-flow-based valuation approach, free cash flows can be used instead of dividends as the expected future payoffs to the investor in the numerator of the general valuation model because:
a. this approach focuses on earnings as a measure of the capital that a firm creates. b. over the life of the firm, the free cash flows into the firm and cash flows paid out of the firm in dividends to shareholders will be equivalent. c. over the life of the firm, the free cash flows out of the firm for investments and cash flows paid into the firm in dividends from these investments will be equivalent. d. this approach focuses on wealth distribution to shareholders.
The periodicity assumption recognizes that
a. the company may continue indefinitely. b. all financial statements should cover a fiscal year. c. it is useful to estimate the business's net income in terms of accounting periods. d. the value of an asset may vary from month to month.
The definition of culture includes ______.
A. it is shared by roughly half of the group B. older members create and archive the culture C. it shapes behavior or structures one’s perception of the world D. it is shared by 100% of the group