Because a futures contract deals with very large trading units, even a modest price change in the price of the underlying commodity can have a large impact on the market value of the contract
Indicate whether the statement is true or false.
Answer: TRUE
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U.S. GAAP requires firms holding debt and equity securities, as well as derivatives, as trading securities to value the securities on the balance sheet after acquisition at
a. an amount based on acquisition cost. b. market value, with changes in market value of securities held at the end of the accounting period reported each period in income. c. market value, with changes in market value of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities. d. present value of future cash flows, with changes in present value of future cash flows of securities held at the end of the accounting period reported each period in income. e. present value of future cash flows, with changes in present value of future cash flows of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities.
When conducting a training-needs assessment, Lako Systems found that a more flexible set of competencies is needed for performance. This finding would have occurred in the task analysis step of the assessment.
Answer the following statement true (T) or false (F)
A true statement about horizontal investments is that:
A. they are rated as high risk because foreign governments see them as providing fewer benefits to the country and greater benefits to a multinational company than other investments. B. they are unlikely to be takeover targets because these investments typically are made with an eye toward satisfying the host country's market demands. C. they run the risk of being taken over by the government because they are export-oriented, and governments like a business that helps them generate foreign capital. D. they are high-risk investments in which goods or services produced are dissimilar to those produced at home.
Publicity is usually perceived as being sponsored by a company.
Answer the following statement true (T) or false (F)