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Questions and Answers
What is a key factor in making a financing decision?
What is a key factor in making a financing decision?
- The weather on the day of the decision
- The color of the office furniture
- The number of employees in the company
- Interest rates and terms of the loan (correct)
What role does risk assessment play in financing decisions?
What role does risk assessment play in financing decisions?
- It predicts the stock market performance
- It helps in evaluating the likelihood of investment success or failure (correct)
- It determines the company's logo design
- It identifies the most popular social media platform
Why is understanding cash flow important in financing decisions?
Why is understanding cash flow important in financing decisions?
- It forecasts the price of gold
- It determines the company's holiday schedule
- It indicates the ability to repay debt (correct)
- It predicts the winner of a sports event
