The "business judgment rule" has been replaced by "good faith statutes" in most states
a. True
b. False
Indicate whether the statement is true or false
False
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Vast numbers of consumers are aware of your product. It is now your goal to enhance preference for your product. You plan to use nonpersonal communications through print media. This will include all of the following EXCEPT ________
A) newspapers B) magazines C) banner advertising D) flyers E) signs
The usual criterion for preparing consolidated financial statements is voting control in the form of majority ownership of common stock. However, for some entities common stock ownership does not indicate control because the common stock of the entity lacks one or more of the economic characteristics associated with equity. U. S. GAAP refers to such entities as a _____ entity
a. variable interest b. special interest c. thinly capitalized d. securitized financial e. nonsecuritized financial
List the three ways to analyze financial statements. State what each of these ways provides to investors and creditors
What will be an ideal response
Suppose the debt ratio is 50%, the interest rate on new debt is 8%, the current cost of equity is 16%, and the tax rate is 40%. An increase in the debt ratio to 60% would have to decrease the weighted average cost of capital (WACC).
Answer the following statement true (T) or false (F)