In 2016, ____________ Was(were) the Least Significant Liability(ies) of U

question 10

Multiple Choice

In 2016, ____________ was(were) the least significant liability(ies) of U.S. nonfinancial businesses in terms of total value.

• A) bonds and mortgages
• B) bank loans
• C) inventories
• D) trade debt
• E) marketable securities

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Definitions:

Cost Of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.

Capital Structure

The composition of a company's liabilities and equity, describing how it finances its overall operations and growth.

Earnings Per Share

A financial ratio that divides a company's net earnings available to common shareholders by the number of outstanding shares, indicating the profitability on a per-share basis.

Debt

Money owed by one party to another under the condition that it is to be repaid, often with interest, at a later date.