Willam expects his new business to support him and his family. This means his asset and financing requirements will
Question 7 options:
1. increase.
2. decrease.
3. remain the same.
4. depend on the size of his family.
This question doesn't make much sense.
Do you mean that "his asset and financing requirements will HAVE TO ..."?
Just because he expects his new business to support him and his family, doesn't mean it's going to happen. It also doesn't tell us anything about his finances before he bought the new business.
Its how the question was stated. I want to say 2 or 4 but I am not sure
Then I'd say 4.
It is NOT 3. Remain the same. ( Just answered it).
To determine whether Willam's asset and financing requirements will increase, decrease, remain the same, or depend on the size of his family, we need to understand what "supporting his family" entails.
If Willam's new business is expected to generate enough income to cover the financial needs of his family, it is likely that his asset and financing requirements will increase. This is because he will need to invest in resources, equipment, inventory, and potentially additional staff to meet the demand and ensure the success of his business. Moreover, he may require additional financing to cover the initial start-up costs and ongoing expenses.
However, if by "supporting his family" we mean that the income generated by his business is sufficient to cover their basic living expenses and he does not plan to expand or grow his business significantly, then his asset and financing requirements may remain the same or even decrease, as he may not need to invest heavily in expanding or acquiring additional assets.
It is important to note that the size of his family may have an impact on his personal financial needs, such as housing, education, healthcare, etc., but it does not directly determine Willam's asset and financing requirements for his business.