The entrepreneur who has to choose a successor with potential to develop the attributes necessary to run the business should consider which of the following aspects of the potential successor over the others?
a. drive and resourcefulness
b. age
c. education
d. gender
ANSWER: a
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________ is the practice of either directly or indirectly naming competitors in an ad and measuring the similarity or dissimilarity of one or more specific attributes.
A. Two-sided advertising B. Slice-of-life advertising C. Comparative advertising D. Verbal appealing E. Refutation advertising
a. ROA focuses on both statements because it is a ratio of net income (from the income statement) divided by total assets (from the balance sheet). b. EVA is not more comprehensive than ROA. They both contain exactly the same inputs (net income and total assets). EVA also contains the weighted average cost of capital explicitly in the formula. But to implement ROA, each division's ROA must be compared to its weighted average cost of capital (wacc). Just because two divisions have the same ROA does not mean they are performing the same if they have different wacc (because their risk factors differ). c. Disagree. EVA and ROA can be applied to each case once the appropriate wacc is set. Both metrics are short-run to the extent that accounting earnings measure last year's earnings; they do
not capture future growth opportunities. For example, R&D expenditures reduce current accounting earnings, but are expected to produce future growth. Both EVA and ROA create incentives for managers to cut R&D spending to boost current ROA and EVA. However, these incentives are reduced if R&D is treated as a capital asset and not deducted from earnings. This adjustment can be made to accounting earnings and assets for both ROA and EVA. Finally, providing long-run incentives can be accomplished by the choice of performance rewards such as stock, options, and deferred compensation. What transfer price should be set for Pepsi transferred from the soft drink division of PepsiCo to a PepsiCo restaurant such as Taco Bell? Justify your answer.
Samantha is beginning her final year of college and is beginning her job search. What should she do first?
A) Research salary, benefits, and job stability in a chosen field. B) Update her résumé to send to prospective employers. C) Locate a specific job opening at a desirable company. D) Analyze her interests and goals and evaluate her qualifications.
A Chapter 13 personal bankruptcy is characterized by all of the following except
A) you continue to pay at least a portion of most of your debts. B) you maintain title and possession of your assets. C) your creditors vote on restructuring your debt repayments. D) a new debt repayment schedule is determined. E) you get relief from harassment by bill collectors.