Correspondence involving bad news such as a plant closing should buffer the problem by providing evidence that the situation is not a top priority for management

Indicate whether the statement is true or false


False

Business

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Which of the following is not true regarding the fair value option for marketable securities and derivatives?

a. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income. b. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows. c. Firms using the fair value option mark the carrying value of the asset to fair value each period. d. If the change in fair value of the derivative decreases carrying value, then the firm reports the amount of that decrease as a loss during the current period. e. If the change in fair value of the derivative decreases carrying value, then the cash flow from operations sections shows a subtraction for the loss.

Business

(Future tense) New employees ____ diversity training on June 1

A) complete B) completed C) will complete

Business

Which of the following pairs of terms are names for the same risk?

A. Market risk and unsystematic risk B. Market risk and relevant risk C. Firm-specific risk and nondiversifiable risk D. Firm-specific risk and systematic risk E. Firm-specific risk and market risk

Business

There are three equally likely states of nature (High, Medium, and Low demand). If the large factory will post profits of $50,000, $25,000, and - $10,000 under these states of nature, respectively, what is the EMV of the factory?

A) $50,000 B) $25,000 C) $28,333.33 D) $21,666.67 E) $65,000

Business