David Is Trying to Decide Whether to Add Capital Through

question 138

Multiple Choice

David is trying to decide whether to add capital through investing more of his own money or through borrowing money from the bank.To help him decide,you remind him that ss long as his firm's rate of return on its assets is greater than the cost of the debt,his rate of return on equity will _____ as the firm uses more debt.

• A)decrease
• B)increase
• C)remain the same
• D)fluctuate

Analyze the conditions under which employers are directly liable for the actions or non-actions of their employees and nonemployee agents.

Recognize the importance of the scope of employment in determining liability and how intentional acts influence this scope.

Explain the process and rationale behind determining direct versus vicarious liability.

Distinguish between liabilities arising out of negligent hiring versus actions within the scope of employment.

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Definitions:

Atomic Components

The fundamental parts that make up a molecule or substance, typically referring to atoms in chemistry.

Symbolic Notation

A system of symbols used to represent numbers, operations, relationships, or ideas efficiently.

Atomic Components

The basic parts that make up an atom, including protons, neutrons, and electrons.

Symbolic Notation

the use of symbols and signs in a structured manner to represent information, commonly found in mathematics, science, and technology.