Over-capitalization can be defined as situation, when: ( ) a business entity has got more long term capital resources than it is needed. ( ) a business entity has got more short term capital resources than it is needed. ( ) a business entity has got more of total capital resources than it is able to be spent. ( ) a business entity has got more current liabilities than it is needed.   To the group of factors influencing the scope and amount of company´s property does not belong ( ) level of capital structure dynamics ( ) level of property employment ( ) price of property ( ) scope of production   Debts are ( ) always long term ( ) influencing the management of company because debtors have the right to manage the company ( ) mostly cheaper than equity ( ) provided only in order to cover current assets       Capital structure is also called as ( ) assets structure ( ) financial structure ( ) property structure ( ) resulting structure The main function of capital of a company is ( ) to  assure investments at the minimal average cost of capital acquisition ( ) to assure maximal profitability ( ) to assure minimal cost of equity ( ) to assure optimal capital structure Altman Z-score is ( ) combined model for predicting bankruptcy and financial standing ( ) model  for predicting bankruptcy ( ) model for predicting financial standing ( ) model for predicting profitability   "Double taxation" of profit is related to ( ) businesses of individuals ( ) capital companies ( ) personal companies ( ) public dompanies   Unuseful fixed cost ( ) are also called overheads ( ) are arising from increasing scope of production at unchanged fixed costs ( ) are arising from unemployed production capacities ( ) are calculated as difference between fixed and variable costs In relation to a dependence on the scope of production, costs are classified ( ) according to the accounting definition ( ) according to the purpose of their consumption ( ) as direct and overhead ( ) as fixed and variable Recommended values of indicators of liquidity are based on                       ( ) amount of financial assets ( ) cash-flow from financial activities ( ) financial strategy of business entity ( ) level of risk on the side of owners           On the second level of Du Pont Analysis, return on equity is evaluated as a function of indicators ( ) of current ratio and total assets turnover ( ) of net return on sales, total assets turnover and financial leverage ( ) of net return on sales, total assets turnover and ratio of total assets and equity  ( ) of production power and current assets turnover

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 8E
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  • Over-capitalization can be defined as situation, when:

( ) a business entity has got more long term capital resources than it is needed.

( ) a business entity has got more short term capital resources than it is needed.

( ) a business entity has got more of total capital resources than it is able to be spent.

( ) a business entity has got more current liabilities than it is needed.

 

  • To the group of factors influencing the scope and amount of company´s property does not belong

( ) level of capital structure dynamics

( ) level of property employment

( ) price of property

( ) scope of production

 

  • Debts are

( ) always long term

( ) influencing the management of company because debtors have the right to manage the company

( ) mostly cheaper than equity

( ) provided only in order to cover current assets

 

 

 

  • Capital structure is also called as

( ) assets structure

( ) financial structure

( ) property structure

( ) resulting structure

  • The main function of capital of a company is

( ) to  assure investments at the minimal average cost of capital acquisition

( ) to assure maximal profitability

( ) to assure minimal cost of equity

( ) to assure optimal capital structure

  • Altman Z-score is

( ) combined model for predicting bankruptcy and financial standing

( ) model  for predicting bankruptcy

( ) model for predicting financial standing

( ) model for predicting profitability

 

  • "Double taxation" of profit is related to

( ) businesses of individuals

( ) capital companies

( ) personal companies

( ) public dompanies

 

  • Unuseful fixed cost

( ) are also called overheads

( ) are arising from increasing scope of production at unchanged fixed costs

( ) are arising from unemployed production capacities

( ) are calculated as difference between fixed and variable costs

  • In relation to a dependence on the scope of production, costs are classified

( ) according to the accounting definition

( ) according to the purpose of their consumption

( ) as direct and overhead

( ) as fixed and variable

  • Recommended values of indicators of liquidity are based on                      

( ) amount of financial assets

( ) cash-flow from financial activities

( ) financial strategy of business entity

( ) level of risk on the side of owners

 

 

 

 

 

  • On the second level of Du Pont Analysis, return on equity is evaluated as a function of indicators

( ) of current ratio and total assets turnover

( ) of net return on sales, total assets turnover and financial leverage

( ) of net return on sales, total assets turnover and ratio of total assets and equity

 ( ) of production power and current assets turnover

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