Which One of the Following Is a Result of a Company

question 46

Multiple Choice

Which one of the following is a result of a company issuing common stock instead of debt to finance the purchase of property?

• A)Leverage will be more effective.
• B)The company will probably experience cash flow problems.
• C)It will have a lower debt/equity ratio.
• D)It will report a lower net income.

---

Definitions:

Design

The process of creating a plan or convention for the construction of an object, system, or measurable human interaction.

Form

A graphical interface in databases and applications where users can enter, modify, or view data fields.

Control Wizard

A feature in software development environments that assists users in creating complex controls by guiding them through the configuration process.

Report Wizard

A guided tool that simplifies the process of creating reports by walking the user through steps to select and format data.