In a Quarterly Meeting,Rand,a Financial Manager at InVest Inc

question 13

Multiple Choice

In a quarterly meeting,Rand,a financial manager at InVest Inc. ,states that the company will benefit in the long term by utilizing a mix of debentures than focusing only on issuing shares.He states that this strategy will give his company a positive _____,which will increase the rate of return of the firm.

• A)risk-return trade-off
• B)leverage
• C)hedge fund advantage
• D)divestiture

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Definitions:

Income

Money received, especially on a regular basis, for work, through investments, or from business activities.

Management Of Variance Analysis

The process of investigating the differences between actual financial results and budgeted or expected results, with the aim of understanding the reasons behind these variances to manage and improve financial performance.

Flexible Budget Amounts

Budgeted figures that can adjust based on changes in activity levels or other factors, unlike a static budget.

Variable Costs

Expenses that change in proportion to the volume of production or sales, including components like raw materials and direct labor costs.