Question

borrowing more money generally: increases equity always increases assets but decreases liabilities has no effect on equity decreases equity question 2 1 pts opportunity cost of capital means: the interest rate on a loan the cost of borrowing money the profit made on every sale the return you give up by choosing one investment over another question 3 1 pts the break - even point is where: revenue = expenses assets = liabilities profit = 10% cash = credit

Explanation:

• For Question 1: When borrowing more money, liabilities increase. Since equity = assets - liabilities, an increase in liabilities (assuming assets remain the same or change in a way that doesn't offset the liability - increase) leads to a decrease in equity.
• For Question 2: Opportunity cost is the value of the next - best alternative forgone. In the context of capital, it's the return given up by choosing one investment over another.
• For Question 3: The break - even point in business is the point where total revenue equals total expenses, resulting in zero profit.

Answer:

Question 1: Decreases equity
Question 2: The return you give up by choosing one investment over another
Question 3: Revenue = Expenses