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NEW QUESTION: 1
Which of the following would provide the important input during the planning phase for an audit on the implementation of a bring your own device (BYOD) program?
A. Policies including BYOD acceptable use statements
B. An inventory of personal devices to be connected to the corporate network
C. Findings from prior audits
D. Results of a risk assessment
Answer: A
NEW QUESTION: 2
Huawei HiCloud platform is designed based on the mainstream microservice architecture in the industry and supports fast iteration and elastic scaling.
A. True
B. False
Answer: A
NEW QUESTION: 3
Suppose changes in corporate law make it more difficult for debt holders to force companies into bankruptcies. This will cause firms to:
A. increase their debt-to-equity ratios.
B. either increase or decrease their debt levels.
C. decrease their debt-to-equity ratios.
D. raise more equity capital through retained earnings.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
It is tempting to assume that lower probability of bankruptcy will entice firms into borrowing more. However, remember that debt holders are not entirely stupid! They will factor in this change in the law and demand a higher yield and stricter covenants on corporate debt to compensate for the lower recourse they have against the firms. Depending on whether they actually underestimate or overestimate the effect and also depending on whether the firms perceive that the debt holders have under- or overestimated the effect, companies could increase or decrease their debt levels.
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