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What are the factors which impact the ability of a business to alter its debt-equity mix?
Well this is an interesting question. Debt and equity are diametrically opposed (i.e. the opposite) so they don't ever "mix". However the ratio of debt to equity (debt divided by equity) refers to the amount of cash risk a business carries relative to its ability to pay that cash back. If the goal is to reduce the debt/equity ratio (say to help a bank want to loan the business some money) then either debt must be reduced (paid back) OR equity (usually cash, inventory, and equipment) must be increased (Like actual profits from the sale of goods or services or like an investment in the business by someone that does not need the money back---ever.) Either way, the only way to improve (reduce) the debt to equity ratio is to actually make real money through increased sales or reduce costs while maintaining sales or getting an investment in the business that does not need to be paid back. Then with this additional money either paying back the debt or holding onto the money as cash or equipment with improve the businesses "mix". Hope that helps.
With the new world business ideas these days, if you have the opportunity and be convincing, one might try to capitalize a portion of your debt.
Second answer
I believe that this question refers to the capital structure of an organization; i.e., the extent to which it is financed by borrowed money (debt), as opposed to the extent to which is is financed by resources belonging to its owners/shareholders (equity). One factor that can affect a firm's ability to change its debt/equity ratio is the cost to the firm of of new borrowing (the interest rate that it will be charged), which will in turn be affected by the firm's credit rating as well as by the general rate of interest. The firm will be charged a rate that reflects not only the market rate of interest unadjusted for risk, but also the risk that the firm may not repay the borrowed funds.
What else can I help you with?
The owner's drawing and net loss are two factors that bring about a decrease in proprietorship?
The owner's drawing refers to the withdrawals made by the owner from the business for personal use, which reduces the equity in the proprietorship. Additionally, a net loss indicates that the business expenses exceed its revenues, further diminishing the owner's equity. Together, these factors contribute to a decrease in the overall value of the proprietorship, as they directly impact the owner's capital account. A sustained decrease in equity can affect the business's financial stability and its ability to invest in growth.
How Transaction Processing System impact organizations and business firms?
Transaction processing systems help businesses charge customers. If a business doesn't have a proper system money can get missing from the organization.
How is a business effected by unpaid accounts?
Unpaid accounts can significantly impact a business's cash flow, limiting its ability to meet operational expenses and invest in growth opportunities. This can lead to a strain on resources, potentially resulting in delayed payments to suppliers or employees. Additionally, persistent unpaid accounts may increase the cost of collections and could also harm customer relationships if aggressive collection tactics are employed. Overall, maintaining a healthy accounts receivable balance is crucial for a business's financial stability and long-term success.
Which value are assigned to a critical function as part of a business impact analysis?
recovery time objective and recovery point objective
What are the factors to be considered in multinational capital budgeting?
There are seven factors to consider in multinational capital budgeting. The factors are: Blocked Funds, Exchange Rate Fluctuations, Financing Arrangement, Impact of Project on Prevailing Cash Flows, Inflation, Real Options, and the Salvage value.
What are the internal and external factors in business environment?
Some internal factors that impact the business environment include competitors and business resources. External factors that affect the business environment barriers to entry and government regulations.
Who are the main participants of business and main activities and other factors have to impact on the conduct of business in the united sstates?
The main participants of business in the United States are entrepreneurs who seek to better themselves. The main activities and other factors that impact the conduct of business including sales, consumer interest, and the overall economic conditions.
Which enviromental factors do you think will have the most impact on your business and why?
It all depends on your type of business. Where your located at and etc. There can be numerous factors affecting it. You need to be alittle more specific with the question.
What factors economic social political or environmental impact on the Harvey Norman's business performance?
what political factors affect the retail industry in aystralia
What are the external factors that have impacted and will continue to impact on the qantas airlines business in the future?
Do your own assignment kid.
How does a micro - environment influence and affect a national business?
A micro-environment comprises factors close to a business that directly impact its operations and decision-making, such as suppliers, customers, competitors, and market trends. In a national context, these factors can influence pricing strategies, product offerings, and marketing approaches. For instance, changes in consumer preferences or competitive dynamics can affect demand for products, while supplier reliability can impact production costs. Ultimately, a business's ability to adapt to its micro-environment can determine its success or failure in the national market.
What are the business factors that underpin human resource planning in an organization?
There are many business factors that underpin human resource planning. some of them are mentioned below: Business growth business decline business change labour cost control changing nature of work impact of technology employee development etc.
Impact of demographic environment factors on business?
When demographic environmental factors change, businesses have to adjust. They have to make sure that their products are meeting the needs of the new market.
Examples of factors that affect one's reading ability?
Factors that can affect reading ability include cognitive abilities like language skills and working memory, environmental factors such as access to books and exposure to reading materials, as well as emotional factors like motivation and confidence. Other factors may include learning disabilities, visual impairments, and neurological differences that impact reading comprehension.
What factors impact your ability to react to a stimulus?
Factors that impact your ability to react to a stimulus include your level of alertness, the complexity of the task, previous experience with similar stimuli, the presence of distractions, and your emotional state. Additionally, factors such as fatigue, illness, and certain medications can also affect your reaction time.
What is business influence?
Business influence refers to the ability of a firm or organization to influence decisions, actions, and outcomes in its environment. This effect can manifest itself in several ways: Market Influence: The ability of a company to influence market trends, consumer behavior, and the competitive landscape. This could be through innovation, pricing strategies, or brand reputation. Legislative Influence: The ability of a business to apply policies and legislation. This may include lobbying efforts, contributions to political campaigns, or joining legislative business groups. Social Impact: How a business influences society’s norms, values, and behaviors. This could be corporate social responsibility (CSR) initiatives, sustainability efforts, or influence through advertising and media. Economic Impact: The impact of a company on the economy, including job creation, economic growth, and its role in the supply chain. Large projects can affect economic conditions locally, nationally, or even globally. Cultural Influence: The ability of a business to shape culture, whether through its products, services, or company characteristics. Technology companies, for example, have had a profound impact on today’s communication and work culture. Internal Impact: The impact a business has on its employees, shareholders, and stakeholders. This includes leadership styles, corporate governance, and decision-making processes that shape company dynamics. Specifically, performance impact relates to the ability and extent to which a firm can shape its environment, both internally and externally.
What factors should be considered when making an investment in capital goods for a business?
When making an investment in capital goods for a business, factors to consider include the cost of the investment, potential return on investment, impact on production efficiency, technological advancements, maintenance costs, and the overall impact on the business's long-term goals and strategies. It is important to conduct thorough research and analysis to make informed decisions that align with the business's objectives.
