Question Details

The inventory turnover ratio and days sales outstanding (DSO) are two ratios 



 True/False 
____ 1. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to encourage the use of debt financing by corporations. 
____ 2. According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stock's contribution to the riskiness of a well-diversified portfolio. 
____ 3. The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. 
____ 4. Midway through the life of an amortized loan, the percentage of the payment that represents interest is equal to the percentage that represents principal repayment. This is true regardless of the original life of the loan. 
____ 5. The inventory turnover ratio and days sales outstanding (DSO) are two ratios that are used to assess how effectively a firm is managing its assets.


Business Assignment Help, Business Homework help, Business Study Help, Business Course Help