Lance Is Trying to Decide Whether to Purchase a New

question 60

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 this asset, 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.

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Definitions:

Communication

The process of exchanging information, ideas, thoughts, and feelings between two or more parties through verbal, written, or non-verbal methods.

Nonverbal Communication

The process of conveying a message without the use of words, through body language, facial expressions, and other visual cues.

Cultural Differences

The distinct variations in beliefs, behaviors, practices, and values across different societies or cultural groups.

Multi-national Group

An organization or collection of individuals from multiple countries who work together toward a common goal or are part of the same corporation operating in various nations.