Using Lower Cost Borrowed Funds and Earning a Higher Rate

question 32

Multiple Choice

Using lower cost borrowed funds and earning a higher rate of return on those funds than their cost

• A)increases the return to the common shareholders.
• B)is a phenomenon called financial leverage.
• C)requires the common shareholders to take on more risk in their investment.
• D)all of the above
• E)none of the above

Learn the registration process and legal structures for protecting intellectual property and business operations.

Understand the implications of misclassifying employees as contractors and the legal structures determining workers' rights and benefits.

Understand IRS record-keeping requirements for employment taxes.

Recognize the impact of business size on the obligation to offer family leave, medical leave, or health insurance.

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Definitions:

Nonbillable Hours

Time spent by professionals, like lawyers or consultants, on activities that cannot be directly charged to a client.

Maximize

To increase something to its greatest potential or highest possible level.

Regulatory Authority

A governmental agency or body responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.

State Supreme Court

The highest court in a U.S. state, with the ultimate judicial authority to interpret state laws and constitution.