A Business Will Be Likely to Borrow to Fund Projects

question 274

Multiple Choice

A business will be likely to borrow to fund projects if the:

• A) rate of return on the project is less than the interest rate on the loan.
• B) project will produce a good or service that is in high demand.
• C) rate of return on the project is at least as high as the interest rate on the loan.
• D) minimum efficient scale will be attained.

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Definitions:

Objective-Subjective Continuum

A spectrum that represents the range from objective, fact-based perspectives to subjective, personal interpretations.

Material Phenomena

Events or occurrences that are tangible and can be observed or measured in the physical world.

George Ritzer

A renowned sociologist best known for his work on the McDonaldization of society, which critiques consumer culture and the homogenization of everyday life.

Macro-Micro Continuum

The spectrum of analysis in sociology that ranges from large-scale social structures and processes (macro) to individual behaviors and interactions (micro).