When Considering How to Finance the Acquisition of an Asset,which

question 50

Multiple Choice

When considering how to finance the acquisition of an asset,which of the following statements is true?

• A)The amount borrowed should be larger than the cost of the assets acquired.
• B)The cash flows generated by the assets should dictate the type of note (noninterest bearing,installment,etc)the company uses to finance the asset.
• C)The cash flow required by the type of note used should dictate the type of asset acquired.
• D)In order to minimize debt the company should not borrow unless there is no cash to fund the acquisition of the asset.

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Definitions:

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, or the greatest happiness for the greatest number of people.

Beneficence

The ethical principle that requires actions to promote good and benefit others, often guiding healthcare professionals.

Autonomy

The capability of a person to make an informed, uncoerced decision about their own life and actions.

Brain Injury

Damage to the brain, whether traumatic or non-traumatic, that impairs its function and is caused by an external physical force or internal factors.