Which of the following observations concerning debt financing is FALSE?
A. The greater the risk that the lender takes on, the greater the interest rate charge will be.
B. Most commercial banks are conservative.
C. The impact of interest charges on prices is negligible.
D. It might involve a loan from a commercial bank or the use of corporate bonds.
E. The cost of borrowing money can be a real financial burden.
Answer: C
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Case 1-1Darlene is studying Aristotle's rhetorical triangle in her communication class. Please answer the questions below. Aristotle diagrammed the effectiveness of speakers in a triangle, which he called the rhetorical triangle. Rhetor means "____" in Greek.
A. voice B. public speaking C. words D. speaker
The current ratio of a firm would equal its quick ratio whenever
A) the firm's current ratio is equal to one. B) the firm's inventory is equal to its current liabilities. C) the firm has no inventory. D) the firm's inventory is equal to its other current assets.
Discount Retail Corporation may be engaging in conduct that violates the Sherman Act. To bring an action against the firm requires that its conduct have a significant impact on? A) international commerce
B) Internet commerce. C) interstate commerce. D) intrastate commerce.
Which of the following is not a requirement of Sarbanes-Oxley?
A) Code of ethics B) Ethics hotline (anonymous) C) Ethics officer D) Both a and c