What is investment diversification?

Select an answer:

• The process of taking on riskier investments over time.

• The process of spreading out your investments in several places.

• The process of investing in stocks in a variety of countries.

You have the opportunity to buy a robotic order-picking machine for $100,000. Disregarding any increase in productivity, what has to be considered in making an investment?

Select an answer:

• the cash flows you will receive from the machine

• the opportunity cost of making another investment

• the value of the machine when you no longer need it

• the potential tax savings from depreciation of the machine

Which item is used to calculate Debt Ratio?

Select an answer:

• accounts payable

• inventory

• total liabilities

• leverage

Which action is the most prudent to ensure flexibility in your personal finances?

Select an answer:

• Keep fixed costs low.

• Keep variable costs high.

• Keep fixed costs high.

• Keep variable costs low.

Which indication does a balance sheet make?

Select an answer:

• a company's total assets along with its liabilities and owners' equity

• a company's assets plus the company's owners' equity

• a company's liabilities minus its owners' equity

• a company's total assets along with its current and long-term liabilities