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low in recessions and lets them increase in economic "boom" times

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13y ago

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What is meant by financial gearing?

Financial gearing tells you the relationship between a company's level of debt and equity shareholdings. The higher the level of gearing the higher the risk of liquidisation, therefore not a good company to invest in, as you probably won't receive any dividends because interest needs to be paid first.


True or false Financial managers prefer to choose the same debt level no matter which industry they operate in?

False, equity has its advantages as well (like paying dividends are not required, but paying interest on debt is), so the debt level can vary widely between industries and even between companies in the same industry.


Why would you want a credit card with no annual fee but a high interest rate?

You wouldn't want a high interest rate, necessarily. However, if you had a choice between a credit card with an annual fee and one without, you would need to see how the interest rates compared. A person with a very low level of debt, such as one who paid out the credit card balance monthly, the high interest rate might not be a deciding factor compared to the annual fee. Remember, the annual fee will also have interest charged on it.


What would most likely lead to a higher level of interest rates in the economy?

the level of inflation begins to decline


How can a certified financial planner help you keep the investment risk to a level that is comfortable for you?

A certified financial planner can definitely help you keep the investment risk to a level that you are comfortable with. Just brainstorm and discuss levels your threshold levels.

Related Questions

The real strength and power of a national party is at what level?

Its strength lies at the state level.


What is meant by financial gearing?

Financial gearing tells you the relationship between a company's level of debt and equity shareholdings. The higher the level of gearing the higher the risk of liquidisation, therefore not a good company to invest in, as you probably won't receive any dividends because interest needs to be paid first.


What does faible mean in french?

"Faible" in French can mean weak, feeble, or lacking strength. It can also be used to describe a low level of intensity or interest in something.


How can i Know whether current account provide same interest like saving account in UAE?

A current account is an account where the level of activity is far more than savings. It is often referred to as a check in account and is made to do frequent transactions as a result most of the times it does not have balance in it. In such cases, current account in banks in does not offer any interest on the account balance . They are 0 interest accounts.


What are Mezzanine level items in balance sheet?

Mezzanine level items would typically be items between Equity and Liability. Some items that might fall in this category are Auction Preferred Shares (in mutual funds) or noncontrolling interest in subsidiaries. As noncontrolling interest does not meet FASB definition for Liabilities and are not part of Equity.


What level of knowledge should users of financial statements have?

What level of knowledge should users of financial statements have?


What is minimum balance?

The minimum amount a bank or other financial institution requires a customer to maintain in his or her account. The institution can set a minimum balance level for any of its accounts, and this amount will vary by institution. Usually, if the required minimum balance is not maintained, the customer is charged various fees for failing to meet the requirements.


What is the meaning of financial statement level risk?

Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.


Which level can you hit 14 with rune scimitar without strength pot in runescape?

Strength potion only boosts your strength by 10 or so levels.You hits also depends on your gear, so I will do it based on Runescape Scimitar, then Rune Scimitar With Strength Amulet.-Non Members-Rune scimitar + strength amulet = Level 63 Strength.Rune Scimitar = 69 Strength.-Members-Rune Scimitar + Amulet of Fury = Level 64 Strength.Rune scimitar + Berserker Necklace = Level 65 Strength.


What is the difference between fiscal policy and financial policy?

Not being trained in this field I would venture the following from some experience: Firstly, both are about resources of the money kind. Fiscal policy could be confined to a financial year (or policy for a 12 month period) or policies applied to financial years. Whislt Financial policy could be generic for any policy involving money


How do you know if you are a level 2 strength on webkinz world?

Go to the kinzville academy and click on your report card. It will display your level and how many more classes you have until level 3 strength


What games are on Wii sports?

Wii Sports has tennis, Baseball, Bowling, golf, and boxing. You can also play training modes to improve your skills and a Wii fitness test to see your skill level. The Wii fitness test shows your stamina, balance, and strength.