Emily runs a children's clothing boutique which takes in local homemade items on a consignment basis. Her standard form contract indicates that Emily has the right to put items on sale without prior approval, but does not specify what effect the sale has on the consignor's payment percentage. Her intent is to keep the same profit she would have had without the sale. She is using ambiguity in her
contract to increase her sales and profit.
a. True
b. False
Indicate whether the statement is true or false
False
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A review of the assets of a bank may indicate that the bank has a substantial investment in long-term bonds. Such an investment could reflect substantial risk if interest rates increase
Indicate whether the statement is true or false
Perkins commits a battery against Connors. If the government brings a criminal action against Perkins, Connors cannot bring a civil tort action against Perkins for the same battery because this would constitute double jeopardy
a. True b. False Indicate whether the statement is true or false
The discount rate that should be used in the net present value calculation to compensate for risk is ________. (See Table 11.7)
A) 6 percent B) 15 percent C) 18 percent D) 24 percent
The balance sheet for Jim's Hardware has the following items listed. Current Liabilities, $25,345;
Long-Term Debt, $100,000; Total Liabilities, $125,345; Total Assets, $325,490. What is the Debt to Equity Ratio for this company? A) 0.499 B) 0.626 C) 0.385 D) 0.198 E) 0.307