Why might a company’s board of directors decide tolease office space even though it would be more economical to purchase the property and finance it with along-term loan?

Q: Why don’t permanent lenders usually provide construction loans to developers? Do construction…

A: Permanent loans: Permanent loans are loans offered by the financial institution for a longer…

Q: What happens if economic engineers invest too much in assets?

A: Economic engineers always combine finance with engineering and develop various models to deal with…

Q: Why lenders assume no risk in granting loan to the government though the return of this type of loan…

A: Loans are raised by governments to meet the financing requirements of the country.

Q: What would happen to the standard of living if people lost faith in the safety of financial…

A: Financial institution is the institution which involve the financial activities such as investment,…

Q: Why has real estate often been a key factor in corporate restructuring?

A: It is a move made by the corporate component to modify on a very basic level either its capital…

Q: Which of the following is NOT an asset? Freehold premises Loan to Mamu Bank overdraft Machinery

A: Assets are the things which are owned by the person or company to get the benefits in the current…

Q: Companies invest in short term investments for safekeeping purposes. Right O Wrong

A: Short-term investments, otherwise called marketable securities or transitory ventures, are those…

Q: Do you think that removing the impediments to a nationwide banking system will be beneficial to the…

A: Nationwide banking system refers to the process of providing financial services to the customers of…

Q: Why Ethics matter in the financial investment industry and how to avoid ethical violence in finance

A: Introduction: The term ethics in general refers to integrity, truth, honesty, justice etc. Ethics…

Q: A common problem facing any business entity is the debt versus equity decision. When funds are…

A: 1. Prepare income statement that compare first year profitability for each of the two alternatives…

Q: Who will shoulder the costs of delinquency sale? issuing corporation lowest bidder highest bidder…

A: Delinquent Stock: If Unpaid subscription or balance thereof  are failed to  pay within 30 days from…

Q: If the book value of the liabilities exceed the market value of the assets, which of the following…

A: Book Value of the liabilities exceed the market value of assets It means assets are insufficient to…

Q: An analyst at a company notes that its cost of debt is far below that of equity. He concludes that…

A: The balance between equity and debt in a company's capital structure is a fundamental aspect of…

Q: why would a business lean towards a rights issue rather than pay for long-term loans?

A: When a company is selling shares to its employees, existing shareholders and parties related to the…

Q: Which of the statement is FALSE in financial decision making?      A. Large size of business needs a…

A: Under financial decision making, requirement of funds is an absolute necessity for any firm. Larger…

Q: Why might a company want to invest in a company rather than buy it outright? Wouldn't they have more…

A: The company want to invest in another company because it believes in maximizing its return over the…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: B)      Analyze why, despite employing various investment appraisal techniques, large investment…

A: Capital budgeting- refers to the formal process used for evaluating potential expenditures or…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: Why do business go bankrupt?

A: A business is described as an enterprise or enterprising entity engaged in commercial, industrial,…

Q: What is one potential impact of tax reforms on small businesses? a) Increased compliance costs b)…

A: The question is asking about the potential impact of tax reforms on small businesses. Tax reforms…

Q: If you're worried about infinite liability, what alternative forms of ownership arrangements for…

A: The Answer

Q: There are two significant benefits of obtaining a loan over investing capital: Select one: a. banks…

A: Loan is defined as the funds, which used to be given to some other party in an exchange regarding…

Q: What is Human Capital? A. Part of the country's current output and imports is not consumed or…

A: The objective of the question is to identify the correct definition of Human Capital from the given…

Q: Why bother with a technical evaluation, anyway? Explain its purpose, how it is used, and how it may…

A: Technical evaluation refers to the process which is used for determining whether the requirements…

Q: risks that an organisation can be exposed to when undertaking a new investment

A: Introduction: A company would enter into various types of investments and these investments would…

Q: True or False: When a company borrows money to finance the purchase of an asset to use in its…

A: Every organization's wants to achieve that much earing so that they can save amount after paying its…

Q: Much capital structure theory focusses upon minimising agency costs, taxes, and bankruptcy costs. It…

A: capital structure theory says that for any company or investment there is an optimal mix of debt and…

Q: Companies borrow because it is in their best interests financially.

A: The given statement is True..... Companies borrow because it is in their best interests…

Q: Explain why the value of an asset is its current market value and not what you paid for it? Why is…

A: There are two methods for valuing anything. The first method is the historical cost method.…

Q: e usage of financial intermediaries as middlemen for these transactions actually increased?

A: Financial intermediaries are those people  who act as middlemen for financial activities. Financial…

Q: what conflicts of interest and fiduciary responsibility can develop when investment bankers deal…

A: Approach to solving the question:Identify the inherent conflicts: Recognize that investment bankers…

Q: Explain the concept of asset financing in Islam. What is the concept of Musharakah? How is it…

A: (Answers of first 3 parts) 1.  Islamic finance refers to the banking and financial activities which…

Q: What are the different types of risks associated with businesses?

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: Critically discuss the effect of increasing the amount paid upfront when corporations make capital…

A: Capital purchases refer to the expenses a company makes for buying new equipments, improving long…