SOPHIA PATHWAYS Introduction to Business Milestone 4. Complete with Answers

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SOPHIA PATHWAYS Introduction to Business Milestone 4. Complete with Answers.20 questions were answered correctly. 1- Which of the following is true about retained earnings? ● Lower retained earnin... gs makes a company more attractive to investors. ● Lower retained earnings cause a decrease in the stock price. ● Higher retained earnings means investors receive lower dividends. ● Higher retained earnings means investors receive higher dividends. CONCEPT Equity Financing 2- Which of the following does a low current ratio indicate about a business? ● The business will exceed its financial goals. ● The business will increase its spending power. ● The business will accept low levels of risk. ● The business will have difficulty repaying debts. CONCEPT Budgeting 3- Which of the types of short term loans below requires the borrower to pay a specific amount of money to the lender on a specific date? ● Mortgage bond ● Debenture bond ● Trade credit ● Promissory note CONCEPT Trade Credit and Promissory Notes 4- Which of the following is true, regarding the risk return relationship? ● A conservative investment is the riskiest type of investment. ● An aggressive investment is less likely to involve a lot of risk. ● A conservative investment is more likely to have the highest return. ● An aggressive investment is likely to have the highest return. CONCEPT Investors and Private Placement 5- Which of the following is true regarding risk management? ● Large companies are more likely to require risk management plans. ● Speculative risks are usually associated with natural disasters. ● Large and small companies need to manage issues with speculative risks. ● Pure risk typically results in potential gains for an organization [Show More]

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