Lance Is Trying to Decide Whether to Purchase a New

question 105

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 assets for the dozer,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:

Eccentric

Someone or something that deviates from conventional or accepted behaviors or characteristics; often considered quirky or odd.

Odd Collections

Unusual or unique assortments of items that people gather, often driven by a hobby or personal interest.

Antisocial

pertains to behaviors that go against social norms and laws, often harming or disregarding the rights of others.

Avoidant Personality

A personality disorder characterized by social inhibition, feelings of inadequacy, and a hypersensitivity to negative evaluation.