Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed. Which phrase best describes this misfortune?
A. Some sacrifices are necessary for the greater good.
B. You've got to give a little to get a little.
C. What goes around comes around.
D. It's possible to score points in the wrong game.
Answer: D
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Mohr Company purchases a machine at the beginning of the year at a cost of $30,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 8 years with a $4000 salvage value. Depreciation expense in year 2 is:
A. $3750. B. $0. C. $3250. D. $7500. E. $26,000.
The cigarette industry is subject to litigation for health hazards posed by its products. The industry has been in an ongoing process of negotiating a settlement of these claims with state and federal governments. As the CFO for Altria Group, the parent
company of Philip Morris, one of the larger firms in the industry, what information would you report to investors in the annual report on the firm's litigation risks? How would you assess whether the firm should record a liability for this risk, and if so, what approach would you use to assess the value of this liability? As a financial analyst following Philip Morris, what questions would you raise with the CEO over the firm's litigation liability?
The general belief of social media providers is that the users wouldn't mind the "small" loss of privacy if they got the service for free.
Answer the following statement true (T) or false (F)
Firms always adopt and use new technology.
Answer the following statement true (T) or false (F)