All Things Being Otherwise Equal,when a Business Entity Is Created,choosing

question 18

Multiple Choice

All things being otherwise equal,when a business entity is created,choosing a significantly higher financial leverage ratio (than the rule of the three thirds would command) will generally lead to (compared to a lower leverage ratio) :

• A) Larger earnings and larger earnings per share
• B) Lower earnings and higher ROE
• C) Higher earnings and lower ROE
• D) Lower earnings and lower earnings per share

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Definitions:

Selling Products Globally

The process of marketing and distributing goods or services outside of the company's home country, often involving considerations of cultural differences, legal requirements, and logistics.

Multi-business-unit Companies

Organizations that operate across different industries or markets, managing a portfolio of businesses as separate units under one overarching corporate umbrella.

Economies of Scope

Refers to efficiency gains derived from the diversification of products or services, allowing for shared resources and capabilities across offerings.

Intellectual Property

Legal rights given to individuals or organizations over their creations, inventions, and ideas, such as patents, copyrights, trademarks, and trade secrets.