?Assuming other things are held constant, which of the following is true of bonds?
A. ?A bond's sensitivity to the change in price from a change in the interest rate increases as its maturity increases.
B. ?For a given bond of any maturity, a given percentage point increase in the interest rate causes a larger dollar capital loss than the capital gain stemming from an identical decrease in the interest rate.
C. ?For any given maturity, a given percentage point decrease in the interest rate causes a smaller dollar capital loss than the capital gain stemming from an identical decrease in the interest rate.
D. ?In the year of purchase of bonds, an investor gets a deduction for the difference in the market value of bonds purchased at a premium and the face value of the bonds.
E. ?A 20-year bond has more interest rate reinvestment risk than a 2-year bond.
Answer: A
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Inadequate disclosure generally occurs through misrepresentations about the nature and products of the company through which means?
a. Board of Directors discussion b. top management conferences c. disclosures during employee recruitment d. news reports
In ________ control, instead of waiting for results and comparing them with goals, a manager or employees can exert control by limiting activities in advance.
A. feedback B. feedforward C. forward D. concurrent E. internal
On December 1, 2016, Sebastian University received cash of $30,000 and a pledge for another $60,000 to be paid in 2017. The amounts are to establish a permanent endowment to provide scholarships for music majors. How should this event be recorded on December 31, 2016, assuming Sebastian is a public university?
A.
| Restricted Cash | 30,000 | |
| Contributions receivable | 60,000 | |
| Nonoperating - Additions to permanent endowment | 30,000 | |
| Deferred Revenues | 60,000 |
B.
| Restricted Cash | 30,000 | |
| Nonoperating - Additions to permanent endowment | 30,000 |
C.
| Restricted Cash | 30,000 | |
| Contributions receivable | 60,000 | |
| Operating - Additions to permanent endowment | 90,000 |
D.
| Restricted Cash | 30,000 | |
| Contributions receivable | 60,000 | |
| Nonoperating - Additions to permanent endowment | 90,000 |
A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how the characteristic of _____ can work to slow the adoption process.
A. relative advantage B. observability C. trialability D. complexity E. compatibility