Tutor profile: Palak M.
Subject: Corporate Finance
What would a potential investor prefer? a. Shares b. Debentures
The answer depends on the priority of the individual. If one is looking for constant source of income, unless amount has been recovered then he/she shall invest in debenture (as they have constant returns). If one is concentrated towards the end result and have patience then he/she shall invest in shares.
What would one prefer? a. Good Income and more debt b. Less Income and less debt
An entrepreneur would prefer good income and good deb, if the firm has been observed to make huge profits. Or else, one would prefer the firm to incur less debt so that the earned profit belongs to the company, instead of outsiders.
What an employee prefers? a. Good Salary b. Good Working Environment
If an individual looks for the job for first, he/she will be looking for good pay. Though, once the employee gets in to the working environment, he/she understands the importance for having a good working environment. Employees build the future of the company. Good working environment and management can keep employees happy and encourage them for enhanced productivity. On the other hand, good pay can buy an employee's loyalty, only for short term. Hence, option b is the correct answer.
needs and palak will reply soon.