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Two Independent Business Entities a and B Were Created in X0.They

Question 11

Multiple Choice

Two independent business entities A and B were created in X0.They are,today ,relatively similar in size and serve similar but separate markets.They report the following time series for their anticipated net cash flow from investing in both tangible and intangible investments (amounts expressed in CU) :
Two independent business entities A and B were created in X0.They are,today ,relatively similar in size and serve similar but separate markets.They report the following time series for their anticipated net cash flow from investing in both tangible and intangible investments (amounts expressed in CU) :   A)  Entity B appears to be intent on growing faster than entity A. B)  Entity B appears to offer a lower risk to investors than entity A. C)  Entity A appears to be intent on growing faster than entity B. D)  Entity A demonstrates a better ability to reimburse its long-term debt than entity B.


A) Entity B appears to be intent on growing faster than entity A.
B) Entity B appears to offer a lower risk to investors than entity A.
C) Entity A appears to be intent on growing faster than entity B.
D) Entity A demonstrates a better ability to reimburse its long-term debt than entity B.

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