In Making Business Decisions,Ridgeline Utility Service Company and Other Corporations

question 11

Multiple Choice

In making business decisions,Ridgeline Utility Service Company and other corporations should strive to be "good citizens" by evaluating

• A)the legal implications of each decision.
• B)the public relations impact.
• C)the safety risks for consumers and employees.
• D)all of the choices.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of losing some or all of the original investment.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, amplifying both potential gains and losses.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and interest.

Debt Financing

A method of raising capital through the sale of bonds, bills, or notes to individual and/or institutional investors, in return for lending the company money.