A threat to bring a civil lawsuit unless someone enters into a contract constitutes duress
Indicate whether the statement is true or false
TRUE
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The balance sheet is a statement that summarizes revenues and expenses for a period
a. True b. False Indicate whether the statement is true or false
Tweedle Corporation's most recent balance sheet and income statement appear below:Balance SheetDecember 31, Year 2 and Year 1(in thousands of dollars)AssetsYear 2Year 1Current assets: Cash$140 $130 Accounts receivable, net 200 210 Inventory 150 180 Prepaid expenses 20 20 Total current assets 510 540 Plant and equipment, net 950 910 Total assets$ 1,460 $ 1,450 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$130 $150 Accrued liabilities 70 70 Notes payable, short term 70 60 Total current liabilities 270 280 Bonds payable 170 190 Total liabilities 440 470 Stockholders' equity: Common stock, $1 par value 200 200
Additional paid-in capital 320 320 Retained earnings 500 460 Total stockholders' equity 1,020 980 Total liabilities & stockholders' equity$ 1,460 $ 1,450 Income StatementFor the Year Ended December 31, Year 2(in thousands of dollars)Sales (all on account)$1,190 Cost of goods sold 710 Gross margin 480 Selling and administrative expense 226 Net operating income 254 Interest expense 25 Net income before taxes 229 Income taxes (30%) 69 Net income$ 160 The times interest earned ratio for Year 2 is closest to: A. 10.16 B. 14.51 C. 9.16 D. 6.40
To be a close corporation, the business must be small, with no more than 20 owners and no more than $500,000 in gross annual income.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. If their maturities and other characteristics were the same, a 5% coupon bond would have more interest rate price risk than a 10% coupon bond. B. A 10-year coupon bond would have more reinvestment rate risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of reinvestment rate risk. C. A 10-year coupon bond would have more interest rate price risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of interest rate price risk. D. If their maturities and other characteristics were the same, a 5% coupon bond would have less interest rate price risk than a 10% coupon bond. E. A zero coupon bond of any maturity will have more interest rate price risk than any coupon bond, even a perpetuity.