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Question 10 3 pts Happiness business is going to host a pizza dinner for clients in its meeting room. There are two alternatives: Alternative 1:
Question 10 3 pts Happiness business is going to host a pizza dinner for clients in its meeting room. There are two alternatives: Alternative 1: The business just bought an oven for $1,000 a few months ago for the company kitchen, so can make pizzas in the oven. Or Alternative 2: The business can buy pizzas from a Pizza Hut shop. In addition, the business is planning to decorate the meeting room just for the dinner and put aside $300 costs for the decoration. When the business is making a decision whether to make pizzas in the company kitchen or buy pizzas from the Pizza Hut shop, which of the following options is correct? The business should not consider the cost of decoration in the decision-making process. The business should consider the cost of the oven in the decision-making process. All of the other options are correct. The business should consider the cost of decoration in the decision-making process. Question 5 3 pts Why might management prefer debt financing to equity financing? Debt has to be repaid. Debt is less risky. Interest is a tax-deductible expense. Debt decreases the effects of financial leverage
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