Firms can manipulate consumers to buy anything the company chooses to produce.
Answer the following statement true (T) or false (F)
False
The idea that firms can manipulate consumers to buy anything the company chooses to produce simply isn't true.
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Sawyer Corporation purchased land in 2009 for $490,000 . In 2015, it purchased a nearly identical parcel of land for $660,000 . In its 2015 balance sheet, Sawyer valued these two parcels of land at a combined value of $1,320,000 . By reporting the land in this manner, Sawyer Corporation has violated which of the following?
a. Going concern assumption b. Cost principle c. Monetary unit measure d. Time Period assumption
It is important to prevent the other party from becoming ________ as you then lose all the advantages of such a position.
Fill in the blank(s) with the appropriate word(s).
In conjoint analysis, ________ are utility functions that describe the utility consumers attach to the levels of each attribute
A) relative importance weights B) orthogonal arrays C) part-worth functions D) attribute levels
A company enters into an interest rate swap in order to hedge a $5,000,000 variable-rate loan. The loan is expected to be fully repaid this year on June 10 . The contract requires that if the interest rate on April 30 of next year is greater than 11%, the company receives the difference on a principal amount of $5,000,000 . Alternatively, if the interest rate is less than 11%, the company must
pay the difference. Which of the following statements is correct regarding this contract? a. The swap agreement effectively hedges the variable interest payments. b. The timing of the swap payment matches the timing of the interest payments and, therefore, the variable interest payments are hedged. c. The timing of the swap payment does not match the timing of the interest payments and, therefore, the variable interest payments are not hedged. d. This swap represents a fair value hedge.