A Disadvantage of Using Credit as a Source of Liquidity

question 73

Multiple Choice

A disadvantage of using credit as a source of liquidity is the

• A) inconvenience of using credit.
• B) potential cost of finance charges.
• C) acceptability of credit by creditors.
• D) poor records available after credit use.

Identify the roles and powers of a corporation's board of directors in setting stock prices, issuing shares, and declaring dividends.

Comprehend the importance and application of various types of tests (e.g., earned surplus test, net asset test) in determining a corporation's ability to issue dividends.

Distinguish between par value and no par value stocks and their implications for capital surplus.

Grasp the concepts and impacts of stock splits and stock options on shareholder value and corporate structure.

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Definitions:

Moral Atmosphere

The prevalent set of ethical standards or moral climate within a specific environment, like a workplace or school, that influences individuals' behaviors and decisions.

Hidden Curriculum

The unwritten, unofficial, and often unintended lessons, values, and perspectives that students learn in school.

Moral Atmosphere

Describes the climate of a social environment in terms of its influence on participants' moral reasoning and behavior.

Values Clarification

Helping people clarify their sense of their purpose in life and what is worth working for. Students are encouraged to define their own values and understand others’ values.