Author Question: If a firm's earnings should drop below the interest cost of borrowed money, the return on owners' ... (Read 136 times)

nevelica · **on:** Jul 14, 2018

If a firm's earnings should drop below the interest cost of borrowed money, the return on owners' equity will increase.

Indicate whether the statement is true or false

Question 2

Shawn Sine decides to start his own business. How likely is Shawn to still be operating a successful business in seven years?
A) It depends on whether it is an e-business or not.
B) It is very likely because most small businesses are successful.
C) It is likely because the chance of failure is nearly equal to the chance for success.
D) It is unlikely because over half of all new small businesses fail.
E) It is very unlikely because almost all new businesses fail within the first three years.