Which is more favorable for a business - huge debts or small debts? Justify your position

Q: what factors will influence an owners decision concerning how to raise finance to establish a new…

A: Raising finance means raising capital for running the business and initiating its operations.…

Q: What is net income? What is a net loss? Why are owners interested in the income statement? Why are…

A: (Note: Since you have posted a multi-part question, we will solve the first three sub-parts for you.…

Q: What interpretation can be made from this equity figure? a.It is a negative figure, so…

A: Here discuss about the details of the decision to make whether the business entity are in the…

Q: an you think of certain types of businesses/industries wherein a high amount of debt is typical and…

A: Introduction : In simple words, debt refers to the form of capital in which the company issues fixed…

Q: Can a business survive without a business plan?

A: In today's world of economy we would likely to know how important a business in our society.  Most…

Q: If Firm A's business is to obtain savings from individuals and then invest them in financial assets…

A: Financial intermediary: It is a firm that goes about as the agent between two parties in financial…

Q: Being an entrepreneur, which non- banking financial institutions help is required to run the…

A: Non - banking financial institutions are the companies that have many functions similar to that of…

Q: Stockholders can best be defined as which of the following? investors who lend money to a business…

A: Stockholders are those investors which purchase common and preferred stock of the company which…

Q: Which is related to accepting deposits and lending money for business and personal needs to earn…

A: A commercial bank is one of the financial institutions. It performs the activities of accepting…

Q: Owners equity is not cash; it is not a liability: and it generally is not equal to the current worth…

A: Owners’ equity generally referred to as shareholders equity, it is the net amount that the equity…

Q: What is meant by owners’ equity?

A: Owner's Equity is the amount contributed to the business by the owners with no obligation of…

Q: Is it possible for a new business venture to be profitable and yet have financial trouble?

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: What is finance, and why is it important to understand finance to run a successful business?

A: Finance is a phrase for issues concerning cash and investment the board, advancement, and research.…

Q: What are the benefits of credit management brings on the economic aspect of a company?

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: How can a small-business owner or corporate manager use financial leverage to improve the firm’s…

A: A business decides its capital structure in a way that gives less cost of capital.

Q: What can be stated about a business with negative owner equity? How did this scenario get to be this…

A: Investors utilize owner equity to assess the financial health of a firm. The amount that…

Q: Something that has value or the power to earn money for a business is a current liabilitie. True…

A: Current Liabilities: Current liabilities are the short- term liability which is to be paid within a…

Q: starting a business, is it okay to start with having debt during the early stages? What dictates the

A: Answer A company needs a financial capital to operate its business. For that many companies,…

Q: why would a business lean towards a rights issue rather than pay for long-term loans?

A: When a company is selling shares to its employees, existing shareholders and parties related to the…

Q: about a business wo

A: Before making a loan to a borrower, banks examine the firm's key financial figures. To establish the…

Q: hat is preferable from the point of view of an investor? a. To value the business using the Asset…

A: An investor's share is represented via equity in a company, while total assets are represent as both…

Q: Creditors are: Multiple Choice people or organizations to whom a business owes money. shareholders…

A: Definition of Creditors: The people or companies extended credit to business. These are interested…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: Which of the following is a Long Term Source of Finance? a. Customer Advances b. Equity Shares c.…

A: Financial instruments are instruments that have some monetary value and are created due to the…

Q: Liabilities Are things of value used by the business in its operation. O a. b. Are future economic…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Can a business earn a gross profit but incur a net loss? Explain.

A: Gross Profit: Gross profit represents the revenue after the deduction of cost of goods sold from the…

Q: explain the meaning of the old Wall Street saying if you engage in financial market activity you…

A: If you engage in financial market trading you either sleep     well or you eat well.…

Q: Which is related to accepting deposits and lending money for business and personal needs to earn…

A: Financial Accounting:- Financial accounting is considered as the process of recording, summarizing…

Q: The owner’s equity will reduce when ________ i. A business obtains net profit ii. A business incur…

A: Owner's Equity also known as Shareholder's Fund is the amount contributed by the shareholders in a…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: of businesses/industries wherein a high amount of debt is typical and considered a

A: Many business or institution have high debt due to nature of business.

Q: Which of the following can impose serious economic consequences on a businessman? O a. Having more…

A: Sole proprietor or businessman has a disadvantage of unlimited liability under sole proprietorship…

Q: What may be stated about a business whose equity is negative? How did such a scenario arise?

A: Investors use shareholders' equity, which is shown on a company's balance sheet, to assess a…

Q: Which of the following is related to the Time value principles of money and banking? a. Loan…

A: Time value principle of money states that money's worth decreases with time. Money's worth today is…

Q: Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of…

A:

Q: Sources of financing a business include:  Group of answer choices Raising capital owners Both…

A: Source of financing a business includes Both

Q: Can a business earn a gross profit but incur a net loss?

A: Gross Profit is computed by deducting cost of goods sold from the sales revenue of the business. And…

Q: I want to do Finance for my business how do I do it

A: To start or continue the business, funds are required for smoothly functioning. Finance means…

Q: Selling equity in the business provides both the opportunity to repurchase and the obligation to…

A: A business is started with the capital of the owner(s). The contribution made by owners are used to…

Q: Financial statement users assess a business liquidity and solvency to see whether a business is…

A: Solution Concept Liquidity               The term liquidity means how quickly can the assets be…

Q: What is the difference between finance and financing?

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Is debt good for a company? Why or Why not?

A: In terms of finance, debt can be defined as the borrowed money on which the borrower of the fund is…

Q: Assume that you are the owner of a successful small-to-medium-sized business. You want to grow your…

A: Assuming  i am the owner of the small and medium sized business. To expand my business firstly i…

Q: What business record shows the results of the proprietorship’s borrowing assets from the business,…

A: Proprietor’s Withdrawals: An owner's withdrawal, also known as a distribution, is a transfer of cash…

Q: What type of income o profit does an investor expect to receive in exchange for providing financial…

A: Income is defined as the top line revenue or an most important revenue, which is calculated by…