How does the use of current liabilities enhance profitability and also increase the firm's risk of default on its
financial obligations?
What will be an ideal response?
Other things remaining the same, the greater the firm's reliance on short-term debt or current liabilities in financing its
assets, the greater the risk of illiquidity. However, the use of current liabilities offers some very real advantages in that
they can be less costly than long-term financing, and they provide the firm with a flexible means of financing its
fluctuating needs for assets. A firm can reduce its risk of illiquidity through the use of long-term debt at the expense of
a reduction in its return on invested funds. Once again we see that the risk-return trade-off involves an increased risk
of illiquidity versus increased profitability.
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In the Activities and Achievements section of the résumé, what types of activities or achievements should generally be included?
A) Membership in political organizations B) Activities that indicate leadership and teamwork C) Activities for religious organizations D) Activities that include personal data E) All volunteer efforts
In the context of the business buying decision process, what is a buying center? Explain why it presents a major marketing challenge
What will be an ideal response?
In order for eHarmony to understand what its clients want, both in a service provider and in a mate, the company uses metrics such as the bounce rate.
Answer the following statement true (T) or false (F)
Which of the following is an advantage of leasing office equipment?
A. Leased office equipment is frequently less costly over a period of time than is purchased equipment. B. The lesser is generally responsible for equipment maintenance and repairs. C. Leasing equipment enables an organization to use its resources more effectively. D. Lease payments are always tax deductible.