Robin plans to open a bar in a high-crime area. She had difficulty obtaining insurance for the business
She found an insurer willing to write the coverage, but only if Robin agreed to have a security alarm system in operation at all times when the business is closed. Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a
A) binder.
B) warranty.
C) waiver.
D) deductible.
Answer: B
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The decline in effectiveness of mass-media advertising has led marketers to shift efforts to:
A) using advertising agencies B) creating brand parity C) trade promotions D) micro-marketing
Which of the following is a disadvantage of using the historical cost-plus approach to arrive at a selling price?
A) It does not include the shipping and ancillary charges as part of a product's cost. B) It ignores demand and competitive conditions in the target markets. C) It fails to address the indirect manufacturing costs that a company is likely to incur. D) It cannot be used by companies that are new to exporting products.
Which of the following is not a generally accepted basis for inventory valuation?
a. net realizable value b. variable manufacturing cost c. replacement cost d. acquisition cost e. net realizable value reduced by a normal profit margin
Which of the following is not true regarding the presentation of cash on the balance sheet?
a. A company may invest its highly liquid cash in order to earn interest; these investments are called cash equivalents. b. Most companies present only a single cash amount on the balance sheet by combining all their bank and cash fund accounts. c. Cash is the most liquid asset, and it is therefore listed first under the property, plant, and equipment section of the balance sheet. d. Cash is the most liquid asset, and it is therefore listed first under the current assets section of the balance sheet.