8. A business has a debt to equity ratio of 4.5 : 1. They plan to expand the business interstate by purchasing another business that is one of its competitors. Which source of funding would best suit their plans for expansion? (a) Banks (b) External (c) Internal (d) Short term

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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8. A business has a debt to equity ratio of 4.5 : 1. They plan to expand the business interstate by purchasing another business that is one of its competitors. Which source of funding would best suit their plans for expansion?

(a) Banks

(b) External

(c) Internal

(d) Short term

9. Which is the main piece(s) of legislation that a marketing department would have to comply with when advertising and promoting a product?

(a) Competition and Consumer Act 2010.

(b) The Fair Trading Act(NSW) 1987

(c) Anti-Discrimination Act (d) (a) and (b)

10. Which of the following would improve the financial position of a business?

(a) Lower current ratio and lower accounts receivable turnover ratio

(b) Higher current ratio and lower accounts receivable turnover ratio

(c) Lower current ratio and higher accounts receivable turnover ratio

(d) Higher current ratio and higher accounts receivable turnover ratio

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