Large businesses should not have working capital problems. It is easy for them to borrow large sums

Question:

Large businesses should not have working capital problems. It is easy for them to borrow large sums on a long-term basis. The problem for large businesses is not working capital; it is excessive gearing. Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Understanding And Practice

ISBN: 9780077139131

4th Edition

Authors: Robert Perks

See More Books

Question Posted: May 14, 2024 06:02 AM

See More Questions

Question: What as the average weekly safety inventory level of refined sugar from the beginning January 2022 to the end of July 2022? A. 512,465.9691 metric tons per week B. 316,002.1474 metric tons...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Suppose the money supply is $250 million dollars and the demand for money is given by Qm D = 400 - 40i, where Qm D is in millions of dollars. A. What is the equilibrium interest rate in this economy?...
According to Mrs. Randolph's will, each of her great-grandchildren living in Georgia received $700 more than each of her great-grandchildren living in Florida. In all, $206,100 was divided between 36...
Based on Exhibits A and B, the best estimate of the average remaining useful life of the companys plant and equipment at the end of 2009 is: A. 20.75 years. B. 24.25 years. C. 30.00 years. Melanie...
Conduct a detailed search for literature to identify those studies
Contemporary Trends sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Baltimore. Although the company has been very profitable over the years, management...
Question B4 Jamie and Janey have been comparing their tax bills and are confused why they both earn 105,000 salary yet Jamie has a reduced personal allowance, whilst Janey receives the full 12,500...
Discuss the effects on just in time of increasing proportions of manufacturing (for the UK) taking place in Eastern Europe, Africa and Asia.
Many small businesses may be seen as overtrading. Accountants are too conservative about such things. To be successful, a rapidly expanding small business needs to sail close to the wind. Discuss...
Verify (by substitution) that the given function is a solution of the PDE. Sketch or graph the solution as a surface in space. Wave Equation (1) with suitable c u = sin t sin bx
Use the ID3 algorithm to build the full decision tree for the data set given in Section 10.9.2. 10.9.2 Example We will start with the training data given below: Film Country of origin Big star Genre...
Implement the nearest neighbor algorithm in the programming language of your choice. The algorithm should work with vectors of up to 10 integer values and allow up to 10 integer classifications. By...
Use the operators described in Section 16.2.4 and the STRIPS method to solve the block world planning problem shown in Figure 16.11. The first state shown is the start state and the second state is...
Implement a Bayesian belief network in the programming language of your choice to represent a subject in which you are interested (for example, you might use it to diagnose medical conditions from...
Researchers have measured the acceleration of racing greyhounds as a function of their speed; a simplified version of their results is shown in Figure P4.67. The acceleration at low speeds is...
Without making any computations, indicate which of each pair has a higher interest rate? a. $100 doubles to $200 in 5 years or 7 years. b. $500 increases in 4 years to $750 or to $800. c. $300...
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
Identify and describe three categones into which insurance coverages may ranked by priority (hint : indicate the nature of the exposures or risk to each category applies)
Builtrite Furniture has calculated the average weekly payroll to be $18,000 with a standard deviation of $4,000. The Tempe store manager will get into trouble if he allows wages to get too high. For...
Process or Sell Product T is produced for $3.58 per pound. Product T can be sold without additional processing for $4.1 per pound or processed further into Product U at an additional cost of $0.42...

Large businesses should not have working capital problems. It is easy for them to borrow large sums

Question:

Step by Step Answer:

Large businesses have advantages in securing funding However working capital issues can still be a challenge even for them Lets break it down Why Larg...View the full answer

Accounting Understanding And Practice

Students also viewed these Business questions