The possibility that a business may not be able to repay a bank loan because of an economic downturn is referred to as

A) materiality risk.
B) information risk.
C) interest rate risk.
D) business risk.

D

Business

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Each X requires 2 of component Y and 1 of part W. Each Y requires 10 of Z. Each W requires 3 of Q and 2 of R. Lead times are X = 1 week, Y = 1 week, W = 2 weeks, R = 1 week, Z = 3 weeks, and Q = 3 weeks. Construct the time-phased product structure

What will be an ideal response?

Business

Optimal capital structure, or debt capacity, is the debt-equity mix that:

A) puts the firm at the EBIT-EPS breakeven point. B) maximizes shareholder control. C) minimizes the amount of debt held by the firm. D) maximizes the value of the firm's common equity.

Business