Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A) Financial leverage should not be considered when a firm borrows money.
• B) Under the right circumstances, the use of borrowed money can improve a firm's return on owners' equity.
• C) There is no good reason for a firm to borrow money when it has cash to finance expansion.
• D) The use of borrowed money always reduces a firm's return on owners' equity.
• E) Return on owners' equity is not an important financial calculation.

Differentiate between various roles in the contract process, including offerors and offerees.

Understand the concept of present intent to contract and its implications for offer validity.

Learn about the enforceability of contracts under the UCC when actions imply acceptance.

Identify the differences between auctions with and without reserve in terms of offer and acceptance.

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Definitions:

Nutrition Labeling and Education Act

A U.S. law aimed at improving consumer access to nutritional information on food labels, facilitating healthier food choices.

Food Labels

Information provided on packaging that includes ingredients, nutritional facts, and allergen information.

Telephone Consumer Protection Act of 1991

A U.S. law enacted to protect consumers from unwanted telemarketing calls, faxes, and SMS messages by restricting methods and times of direct marketing communications.

Unsolicited Faxes

Unsolicited faxes refer to the practice of sending fax messages, often advertisements, without the recipient's prior consent, which is regulated in many jurisdictions.