Interest-rate risk refers to the potential decline in a security's price as interest rates rise
Indicate whether the statement is true or false.
TRUE
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_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.
A. One-part pricing B. Price lining C. Flexible pricing D. Price skimming
Nelly Company sold its cattle ranching component on June 30, 2016, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 35%. How should Nelly report the income and the sale on its income statement?
A) as $300,000 operating income and a $1,000,000 gain on sale of component B) as a $1,300,000 gain in operating income C) as a net of tax gain of $845,000 after income from continuing operations D) as $195,000 operating income and a $650,000 gain on sale of the component
Many automobile dealerships employ a non-negotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopted this pricing policy because
A. women have an intense dislike of price negotiation, yet still want to buy a car. B. the industry was discussing the abandonment of self-regulation practices. C. women distrust men in general and car salesmen in particular. D. many recent immigrants into the United States are not accustomed to negotiation. E. a sluggish economy guarantees that negotiations would produce negative profit per vehicle.
The most useful information derived from a cost-volume-profit chart is the
a. amount of sales revenue needed to cover enterprise variable costs. b. amount of sales revenue needed to cover enterprise fixed costs. c. relationship among revenues, variable costs, and fixed costs at various levels of activity. d. volume or output level at which the enterprise breaks even.