If the Firm's Rate of Return on Its Assets Is

question 2

Multiple Choice

If the firm's rate of return on its assets is _____ than the cost of borrowing, then the owners' rate of return on equity will _____ as the firm uses _____ debt

• A) greater, increase, less
• B) greater, decrease, more
• C) greater, increase, more
• D) less, increase, more

Grasp the importance of cash flow from assets and its components.

Recognize the types of costs associated with a firm and their impact on financial statements.

Understand the financial statements and their purposes within a firm.

Gain knowledge on depreciation, capital cost allowance (CCA), and their effects on a firm’s finances.

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Definitions:

Article 9

A provision of the Uniform Commercial Code that governs secured transactions involving personal property.

Real Property

Land and anything permanently attached to it, such as buildings and trees, as opposed to personal property.

UCC

The Uniform Commercial Code consists of regulations governing sales and commercial activities across the United States.

Consumer Goods

Products bought for consumption by the average consumer, typically including items such as food, clothing, and household goods.