Lance Is Trying to Decide Whether to Purchase a New

question 105

Multiple Choice

Lance is trying to decide whether to purchase a new bulldozer to expand his business.He is confident he has enough work to keep the bulldozer busy and that repaying the loan will not be a problem.What advice would you give Lance?

• A)If the interest rate on the loan is less than the return on assets for the dozer,buy.
• B)If the return on this asset is more than the return on his equity,don't buy.
• C)If his current return on equity is greater than the return on this asset,buy.
• D)If his total asset turnover rate is greater than one,don't buy.

---

Definitions:

Transmitters

In a biological context, substances like neurotransmitters that transmit nerve impulses across synapses. In technology, devices that send signals or data.

Receptors

Biological molecules or structures which bind to specific substances, allowing them to have an effect within an organism, or components in technology designed to receive signals.

Hearing

Hearing is the sensory process that involves the perception of sound waves through the ears, enabling individuals to recognize and interpret sounds in their environment.

Franchisee Phone Calls

Communication interactions between franchisees and franchisors, crucial for operational support and resolving business issues.