Author Question: The disadvantages of small businesses include all of the following except A) limited potential for ... (Read 74 times)

jace · **on:** Jul 14, 2018

The disadvantages of small businesses include all of the following except
A) limited potential for growth.
B) a high risk of failure.
C) no opportunity to support your family.
D) limited ability to raise capital.
E) limited advancement opportunities for employees.

Question 2

Which of the following statements is true?
A) Financial leverage should not be considered when a firm borrows money.
B) Under the right circumstances, the use of borrowed money can improve a firm's return on owners' equity.
C) There is no good reason for a firm to borrow money when it has cash to finance expansion.
D) The use of borrowed money always reduces a firm's return on owners' equity.
E) Return on owners' equity is not an important financial calculation.