Is it in the best interests of the company to borrow money?

Q: Which of the following is defined as art and science of managing money? a. Finance O b. Investment…

A: finance is defined as the art and science of managing money. finance is considered about decision…

Q: How to incease profitability in a service company if Operating cash does not cover debt?

A: operating cash flows -  cash flows from the operations of the business are known as operating cash…

Q: How does the financial system function?

A: Financial system function  has from starting gathering of funds This funds are used for capital…

Q: Is it financial expediency for firms to borrow?

A: The acquisition of debt funds by businesses is far more convenient than any form of funds and far…

Q: Why is an analysis of the company’s cash balance important?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What's the difference between a cash business and cash accounting?

A: A business that runs primarily on cash transactions is known as a cash business. The business may…

Q: What is free cash flow? If you were an investor, why might you be more interested in free cash flow…

A: Answer:   Free cash flows are the residual amount of cash remains with the company after the meeting…

Q: Would it ever be rational for a firm to borrow money in order to pay cash dividends? Explain.

A: The dividends can be paid by company on following  these rules: 1. Out of profits of the company…

Q: What are financial intermediaries, and what economic functions do theyperform?

A: Financial intermediaries connect the borrowers and lenders in the financial market. The financial…

Q: What is underpricing? What is leaving money on the table?

A: Underpricing: Underpricing is a concept in a finance where a corporation, going for IPO (initial…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

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: Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

A: Definition:   Investing cash flow: The amount of cash disbursed or received in investing activity in…

Q: creditors assess risk when lending funds

A: Assessment of risks when lending funds means evaluating the credit worthiness of the company in…

Q: What does it mean to have "free cash flow"? What may make free cash flow more important to an…

A: Introduction: The residual amount of cash that remains with the company after all operational…

Q: How sources of finance allow business to build?explain

A: Finance is required in conducting every business, no business conducts its business activity…

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: What is the impact of deferred annuities in consideration to business matter?

A: The legal contract between any entity and an insurance company is a deferred annuity contract. The…

Q: Accountancy is a field that deals with money. What ideas and words are used there?

A: Accountancy is the field that deals to identify, measure, record, and communicate the monetary…

Q: Who are financial intermediaries?

A: Introduction: Financial intermediaries play an important role in financial markets & offer a…

Q: What are the problems encountered by the financial system? What is/ are assessment to these…

A: The group of institutions like banks, insurance companies, mutual funds, stock exchanges, etc. that…

Q: What is the significance of Financial Management? What are the advantages and disadvantages of…

A: Financial management: It is the process of organizing, collecting, managing, and distributing funds…

Q: Why is it appropriate to use cash basis accounting in yourpersonal life but not in the business…

A:

Q: ring and explain its advantages and disadvantages. Why might a bank be interested in a company’s…

A: Gearing : In simple words, gearing refers to the ratio of the company debt to equity. It depicts how…

Q: Why do companies offer a cash discount?

A:

Q: Companies borrow because it is in their best interests financially.

A: The given statement is True..... Companies borrow because it is in their best interests…

Q: what factors determine the need cash in the firm's operations?

A: The following are the factors: 1. Purchase and Sale Terms 2. Receivables Collection Period 3. The…

Q: Why might a business invest cash in temporary investments?

A:

Q: The main reason why there should be cash in a company is for speculation.   False or true?

A: The question is related to True or False.

Q: Is revenue earned the same as cash collected?  Why or why not?

A: Introduction: Cash basis accounting: Only cash transactions are recorded. No credit transactions are…

Q: How does a firm’s ability to borrow affect its optimal holdings of cash and securities?

A: In a regular course of business, every business entity enjoys benefit of credit from each other…

Q: How can the use of debt serve to discipline managers?

A: A debt in a capital structure is a liability for the company on which company is bound to earn as…

Q: How does the financial system function and why does a financial crisis occur ?

A: Financial system is a full mechanism of movement of funds. Investors invest their money in firms and…

Q: How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’…

A: Securitization is a method in which assets are converted in securities by using financial tools.…

Q: What factors determine the need for cash in a firm's operation?

A: It would be desirable on the part of the management to provide for sufficiently large amount of cash…

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: How can the financial markets provide liquidity for savers who hold financial instruments but are in…

A: Financial markets A financial market is a place where financial securities like stocks and bonds are…

Q: How do I manage money

A: It is essential for individuals to manage finances and ensures sufficient funds are available…

Q: What are the difficulties associated with the financial system and how these challenges can be…

A: Financial system is undergoing a significant change with the advancement of technology. It has…