Because salespeople are an expense to the company, yet they are the ones who generate revenues for the company, management must strive to achieve optimality in the size of its sales force.
Answer the following statement true (T) or false (F)
True
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Sam Mueller and Geoffrey Robinson enter into a limited partnership in which Sam is the general partner and Geoffrey is the limited partner. They borrow $50,000 to start a business
Keeping all rules of naming their businesses in mind, they start a law firm named Robinson-Mueller Legal Associates. Martin Humphrey joins them after eleven months as a general partner but does not include his surname in the name of the business. If the business fails, which of the following is true? A) Only Sam, being the sole general partner is liable to the creditor. B) Martin has unlimited personal liability for not including his surname in the name of the business. C) Geoffrey is liable as a general partner as he included his surname in the business with full knowledge. D) All three partners are equally liable to the creditor, irrespective of including their surname in the title of the business.
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $87,000. The cab has an expected salvage value of $36,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 69,000 miles the first year and 99,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.)
A. $25,245 and $8160 B. $25,245 and $44,160 C. $43,065 and $13,920 D. $43,065 and -$22,080
3-D televisions are new products in the U.S. market. They are in the ________ stage of the product life cycle.
A. market growth B. sales decline C. market introduction D. market maturity
The percent-of-sales method to prepare a pro forma income statement assumes a firm has no fixed costs. Therefore, the use of the past cost and expense ratios generally tends to ________ profits when sales are increasing
A) accurately predict B) overstate C) understate D) have no effect on