Question

Which of the following best describes the risk associated with companies in an emerging industry? A....

Which of the following best describes the risk associated with companies in an emerging industry?

A. They have less risk because they do not yet have a substantial investment in equity.
B. They have less risk because they have less access to financing.

C. They have more risk because the industry's limited track record adds uncertainty.
D. They have more risk because borrowers have less assets to pledge as collateral.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

C. They have more risk because the industry's limited track record adds uncertainty.

Please do rate me and mention doubts in the comments section.

Add a comment
Know the answer?
Add Answer to:
Which of the following best describes the risk associated with companies in an emerging industry? A....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 3) Indicate which of the following statements best describes HDL and which best describes LDL cholesterol....

    3) Indicate which of the following statements best describes HDL and which best describes LDL cholesterol. • Removes cholesterol from the cells and returns it to the liver for elimination or recycling A) HDL B) LDL • Associated with an increased risk of heart disease A) HDL B) LDL • Delivers cholesterol to the cells A) HDL B) LDL • Can be increased through exercise A) HDL B) LDL 7)  Your mom wants to lose weight and is asking about what...

  • Which of the following statements are false (check all that apply)? Group of answer choices: A> Debt holders have lim...

    Which of the following statements are false (check all that apply)? Group of answer choices: A> Debt holders have limited upside. B> Equity providers limit their downside by securing their investment with assets as collateral. C> Lenders have more involvement in a business in order to protect their capital. D> Debt is less risky to the business because the cost of capital is lower.

  • Which of the following statements describes a "Capacity' strength or weakness for a company in the...

    Which of the following statements describes a "Capacity' strength or weakness for a company in the 5 Cs of credit framework? There are assets available to secure the loan in the event of a default. The net profit margin ratio is high. There is a large potential customer base in this industry. OOO The company has sufficient equity to withstand a downturn. Which of the following tools or methods is used to assess the general business environment? MAST framework PEST...

  • Which of the following best describes the condition that leads to a natural monopoly? The firm takes anti-compe...

    Which of the following best describes the condition that leads to a natural monopoly? The firm takes anti-competitive actions to keep other firms out. Economies of scale are large relative to quantity demanded in a market. The government prohibits entry into an industry A single firm controls an industry because there are very few customers in the industry occurs when the price of a good changes and consumers have an incentive to consume less of the good with a higher...

  • public health Question 39 Which of the following best describes how the United Kingdom's healthcare system...

    public health Question 39 Which of the following best describes how the United Kingdom's healthcare system is more focused on social justice than the healthcare system in the United States? Not yet Por out of 1.00 Flag question Select one: O A. Privately owned and administered hospitals provide premium services for selected individuals. O B. Healthcare insurance coverage is universal and comprehensive with little cost sharing involved O C. There are no financial incentives for general practitioners or physicians. OD....

  • Which of the following best describes the benefits to the borrower of selling asset-backed securities? Due...

    Which of the following best describes the benefits to the borrower of selling asset-backed securities? Due to the portfolio effect, the borrower can package up low-quality accounts receivable and sell them for a premium price. The borrower trades future cash flows for current cash flows. The asset-backed security is likely to carry a high credit rating of AA or better. The borrower trades future cash flows for current cash flows and the asset-backed security is likely to carry a high...

  • QUESTION 1 Which of the following best describes the "economic" definition of operations? The purpose of...

    QUESTION 1 Which of the following best describes the "economic" definition of operations? The purpose of operations is to make money The purpose of operations is to add value for customers The purpose of operations is to transform inputs into outputs that exceed the number of inputs The  purpose of operations is to achieve and then extend the efficient frontier QUESTION 2 Which of the following terms best describes foreign direct investment? Direct investing in, controlling, and managing value added activities...

  • Which of the following describes equity securities, rather than debt securities or derivatives? a) They are...

    Which of the following describes equity securities, rather than debt securities or derivatives? a) They are best for hedging against changes in currency exchange rates. b) They offer a fixed rate of return. c) They typically generate the highest returns of the three types of marketable securities. d) They carry more risk than debt securities, but less than derivatives. Place the following steps for developing a credit policy in the correct order of process: A: The company decides that it...

  • john c hull risk management 1.4 What is the difference between systematic and nonsystematic risk? Which...

    john c hull risk management 1.4 What is the difference between systematic and nonsystematic risk? Which is more important to an equity investor? Which can lead to the bankruptcy of a corporation? 1.5 Outline the arguments leading to the conclusion that all investors should choose the same portfolio of risky investments. What are the key assumptions? 1.6 The expected return on the market portfolio is 12% and the risk-free rate is 6%. What is the expected return on an investment...

  • Cost of capital Summary In 2010 the Federal Reserve Board (the Fed) reported that nonfinancial companies...

    Cost of capital Summary In 2010 the Federal Reserve Board (the Fed) reported that nonfinancial companies in the United States had around $2 trillion in cash and short-term liquid assets. As the U.S economy was still struggling, consumer spending remained low, and companies resisted in investing in new projects that would create value for their stakeholders Based on your understanding of the concept of cost of capital, which of the following statements are valid? Check all that apply. As the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT