A compensating balance arrangement usually results in which of the following for a company?
a. Increase its interest income.
b. Increase the effective interest rate on corporate borrowing.
c. Decrease the effective interest rate on corporate borrowing.
d. Exhibit no change in the effective interest rate on corporate borrowing.
b
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In some cases, part performance of a contract for the sale of land takes the contract out of the coverage of the statute of frauds.
Answer the following statement true (T) or false (F)
Loyal Enterprises has sales revenue of $125,000 for 2014. Its product sells for $10 and has a 25 percent contribution margin. Fixed costs are $26,000. What is Loyal Enterprises' operating income for 2014?
A) $2,600 B) $26,000 C) $31,250 D) $5,250
Lebron, Michael, Nolan, and O'Neill combine to buy a professional basketball franchise. Their selected form of business organization is an investment group, which is also known as? A) a business trust
B) a joint stock company. C) a joint venture. D) a syndicate.
At what level of the pyramid of corporate social responsibility will firms do what is right, just, and fair and avoid harm?
A. economic B. philanthropic C. legal D. ethical E. moral