Lesedi Is Trying to Decide Between the Use of Debt

question 109

Multiple Choice

Lesedi is trying to decide between the use of debt and the use of equity to finance her young business.She should remember that:

• A)her return on assets will be less if she uses debt financing.
• B)using other people's money to finance one's business is seldom a good idea.
• C)the lender will have partial control of the business.
• D)debt must be repaid even if the company does not make a profit.

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Definitions:

CRM System

A set of information technology tools used to help companies stay connected to customers and prospects, streamline processes, and improve profitability.

CLV System

Customer Lifetime Value system, a metric that estimates the total revenue a business can expect from a single customer account throughout the business relationship.

FAB Method

A sales technique that focuses on features, advantages, and benefits of a product or service to the customer.

CRM Systems

Customer Relationship Management systems; technology platforms that help businesses manage communications and relationships with current and potential customers.