When a Business Borrows Money from a Bank, the Immediate

question 105

True/False

When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or equity.

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Definitions:

Organisational Strategy

It outlines the long-term objectives of an organization and the plans devised to achieve these goals effectively.

Global Environment

Refers to the external, international factors that influence organizations and their operations, including economic, political, and cultural dynamics.

Conceptual Skills

The ability to understand complex ideas and apply strategic thinking for problem-solving and planning.

Decisional Roles

Roles associated with making choices and decisions that affect the direction and operation of an organization.