Expenses are recognized and matched against revenues on the basis of three principles. Which of the following is not one of these principles?

A) immediate consumption
B) associating cash flows
C) systematic and rational allocation over time
D) cause and effect


B

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Systems operation includes systems maintenance and ______________________________

Fill in the blank(s) with correct word

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________ competition can destroy entire product categories when a major innovation occurs, so it requires attention, especially for long-run planning

A) Product form B) Product category C) Generic D) Budget

Business

Which of the following is an advantage to using email to convey bad news?

A) Email allows the bad news to be referred instead of stated directly. B) Email allows the sender to sugarcoat the message. C) Email is more likely to be accurate and complete. D) Email is more likely to be used confidentially. E) Email is less likely to get a response than a face-to-face conversation.

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Sovereign Immunity. Tonoga, Ltd., doing business as Taconic Plastics, Ltd., is a manu-facturer incorporated in Ireland with its principal place of business in New York. In 1997, Taconic entered into a contract with a German construction company to

supply special material for a tent project designed to shelter religious pilgrims visiting holy sites in Saudi Arabia. Most of the material was made in, and shipped from, New York. The company did not pay Taconic and eventually filed for bankruptcy. Another German firm, Werner Voss Architects and Engineers, acting as an agent for the government of Saudi Arabia, guaranteed the payments due Taconic to induce it to complete the project. When Taconic received all but the final payment, the firm filed a suit in a federal district court against the government of Saudi Arabia, claiming a breach of the guaranty and seeking to collect, in part, about $3 million. The defendant filed a motion to dismiss based, in part, on the doctrine of sovereign immunity. Under what circumstances does this doctrine apply? What are its exceptions? Should this suit be dismissed under the "commercial activity" exception? Explain.

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