Discuss at least three external control mechanisms.
What will be an ideal response?
Several external governance control mechanisms that have developed in most modern economies. These include the market for corporate control, auditors, governmental regulatory bodies, banks and analysts, media, and public activists.
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The most recent balance sheet and income statement of Oldaker Corporation appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$31 $29 Accounts receivable 73 79 Inventory 44 45 Property, plant and equipment 728 590 Less accumulated depreciation 253 242 Total assets$ 623 $ 501 Liabilities and stockholders' equity: Accounts payable$56 $63 Accrued liabilities 21 22 Income taxes payable 26 28 Bonds payable 121 110 Common stock 33 30 Retained earnings 366 248 Total liabilities and stockholders' equity$ 623 $ 501 Income StatementSales$ 921Cost of goods sold 575Gross margin346Selling and administrative expense 117Net operating income229Income taxes 69Net
income$ 160The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was: A. $(138) B. $138 C. $127 D. $(127)
Which set of multiplicities correctly shows the relationship between the Cash Receipts table and the Sale table for an organization that allows customers to buy on credit and pay in multiple installments?
A. Cash Receipts (0..N) - Sale (1..1). B. Cash Receipts (1..1) - Sale (N..M). C. Cash Receipts (1..1) - Sale (1..1). D. Cash Receipts (1..N) - Sale (0..N).
According to Henry Shue, firms are not in the business of protecting the interests of their workers, except when this is a means to accomplish the organizational objectives
a. True b. False
Under a traditional indemnity plan, most of your expenses are already covered and don't need to be reimbursed, but you're limited to receiving health care from a specified group of participating providers
Indicate whether this statement is true or false.