In general, long-term unsecured debts are less costly than long-term secured debts for a particular firm.?

Answer the following statement true (T) or false (F)


False

Long-term unsecured debts are more risky than secured debts. Therefore, long-term unsecured debts are more costly than long-term secured debts for a particular firm as their interest rates are higher. See 6-1: Characteristics and Types of Debt

Business

You might also like to view...

The entry to record payment of a $1,500 purchase within the 2 percent discount period would include a(n)

a. decrease to Accounts Payable for $1,470. b. increase to Purchases Discounts for $30. c. increase to Accounts Payable for $1,500. d. increase to Cash for $1,500.

Business

The "hierarchy of needs" model suggests that most products must fill more than one need at the same time.

Answer the following statement true (T) or false (F)

Business

Which of the following is a core activity according to the value chain model?

A) human resource activities B) technology development C) operations and manufacturing D) administrative activities E) infrastructure activities

Business

Discuss how a seller's cost influences a customer's profit and how a seller's service impacts a customer's revenue

Business