What is the best way to assess solvency? Explain
Evaluating leverage best assesses solvency. A company should earn a profit that is greater than the cost of capital. This can be assessed by evaluating the debt-to-equity ratio to determine the company's ability to repay principal, the times interest earned ratio to determine the company's ability to pay interest, and the debt service coverage ratio, which evaluates the company's ability to pay both interest and principal.
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Which of the following statements regarding investment centers is incorrect?
A. A manager of an investment center should be accountable for assets, liabilities, and earnings. B. A manager of an investment center is responsible for the investment of capital, but not revenues or expenses. C. Investment centers are commonly found at the higher levels of an organization chart. D. Return on investment and residual income are tools used to assess managers of an investment center.
Managers of nonprofit organizations measure their success by ______.
A. the number of volunteers recruited within a fiscal year B. increasing the organization’s resources C. expanding services D. achieving the mission within financial limits
Answer the following statements true (T) or false (F)
1. While case law surrounding labor relations issues is relatively dynamic, actual statutory laws (e.g., NLRA, Landrum-Griffin) have changed little since they were originally passed. 2. The NLRB's decision in Wright Line lays out a 3 part test to determine whether an employee was disciplined or discharged for legitimate reasons, rather than as retaliation or coercion for union activities. 3. Under the NLRA, changes in the context of employee relations or differences in the specifics of a particular case have little effect on the balance between company property rights and worker labor rights. 4. Because U.S. labor law has remained largely unchanged since the Landrum-Griffin Act of 1959, the decisions of the NLRB are predictable and generally insulated from political influence.
Turtle World orders 200 small sea turtles from Reptile World. After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World, the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free. Under this scenario
a. Turtle World cannot successfully sue because the contract is void. b. Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved. c. Turtle World can successfully sue for specific performance because sea turtles are everywhere. d. Turtle World is entitled to a judgment for compensatory damages, but not consequential damages.