Answer the following statement(s) true (T) or false (F)
An entrepreneur does not need to know how to calculate the value of a competitor's operation.
ANSWER: False
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How does a firm use a market opportunity to reach a particular target market?
What will be an ideal response?
Which one of the following statements is TRUE?
A. When lenders protect themselves from the risk of asset switching, the firm's WACC can increase. B. An example of an agency cost is when the board of directors pays a dividend to shareholders. C. An example of an agency cost is when an attorney hires an expert witness for a trial. D. An example of asset switching is an option to exchange one piece of real estate for another. E. Lenders can't legally prevent a firm from engaging in asset switching.
Banks are very hesitant to engage in fronting loans because of the low probability of repayment and thus their risk exposure up to a 100% loss
Indicate whether the statement is true or false.
Indicate whether each of the following statements regarding internal controls is true or false. ________ a) Cash receipts should be deposited in a bank when they reach a predetermined level of materiality.________ b) To improve operating efficiency, a company should make most of its disbursements using cash.________ c) Supporting documents should be reviewed by the check signer prior to signing the check.________ d) Supporting documentation should not be marked "paid" until the check clears the bank.________ e) All spoiled and voided checks should be shredded.
What will be an ideal response?