CRT-261 Practice Questions

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NEW QUESTION: 1
Successful use of financial leverage would be illustrated when:
A. Rate of return on assets exceeds the cost of debt
B. Rate of return on assets (ROA) exceeds the rate of return on stockholder's equity
C. Rate of return on sales exceeds the cost of debt
Answer: A
Explanation:
Successful use of leverage is evident when more income can be generated from the use of borrowed funds (the new assets) than it costs to actually borrow the funds.

NEW QUESTION: 2

A. Option C
B. Option D
C. Option A
D. Option B
Answer: D

NEW QUESTION: 3
What does an organization FIRST review to assure compliance with privacy requirements?
A. Legal and regulatory mandates
B. Employee's compliance to policies and standards
C. Best practices
D. Business objectives
Answer: A