Why is a company's owners' equity important for investors and lenders?
A) Owners' equity indicates potential profit.
B) Owners' equity determines how quickly liabilities will increase.
C) Owners' equity determines how much will be paid out as dividends.
D) Owners' equity indicates how much the owner has invested in the company
E) Owners' equity indicates the level of security.
Answer: E
Explanation: E) Before lending money to owners, for example, lenders want to know the amount of owners' equity in a business. A larger owners' equity indicates greater security for lenders.
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The right-to-cure period for residential property is 110 to 125 days.
a. true b. false
Which of the following activities best illustrates the use of marginal analysis?
A) Finding the future value of a savings deposit B) Finding the opportunity cost of not going to college C) Buying a dozen oranges a week because they are priced at $1.00 a dozen instead of $0.10 each D) Buying eight oranges a week because the extra satisfaction from four extra oranges is not worth $0.20 to you