The Owners of a Company Change Their Decision to Finance

question 21

Multiple Choice

The owners of a company change their decision to finance by issuing more shares.Instead,they take out a long-term note with their bank.What will be the repercussions of this change in decision?

• A) return on assets will increase
• B) return on assets will be unaffected
• C) financial risk will be lower
• D) financial risk will be unaffected

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Definitions:

Environmental Degradation

The deterioration of the environment through the depletion of resources, destruction of ecosystems, and extinction of wildlife.

Advantaged

Refers to individuals or groups that have a superior position in terms of resources or opportunities compared to others.

Disadvantaged

Refers to individuals or groups that face social, economic, or political barriers that prevent them from achieving the same success as others in society.

Scientific Principles

Foundational concepts and laws that serve as the basis for scientific inquiry, underlying the behavior of the natural world.