Discuss the custody of investments and intangible assets.
What will be an ideal response?
Custody of investments and intangible assets depend on the nature of the asset. Negotiable certificates
represent some investments such as bonds. The actual certificate may be kept by a third party such as a
stock broker or a bank. In such cases, the custody rests with the official who is authorized to buy or sell
the instrument. Some instruments may also be in the custody or possession of the actual company. If they
are kept by the company, they should be locked away in a safety deposit box or a safe. Only high-ranking
officials should have access to them.
Other types of investments do not have formal certificates. In such cases, custody may take the form of
formal responsibility over the transactions in that area. In examples such as patents, trademarks, and the
like, the legal documents such as contracts may be the only evidence of existence. Custody of these
intangibles may be in the hands of the accountant who calculates them and the amortization on them.
Company managers may be assigned responsibility to protect the exclusive rights granted by the various
intangibles.
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Abbel Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which statement is true about Abbel Inc.?
A. It is a customer-friendly firm. B. It gives the least importance to profits. C. It considers its employees as resources. D. It helps employees find higher-paying jobs. E. It tries to keep its labor costs minimal.
Answer the following statement(s) true (T) or false (F)
1. Drop shippers physically deliver products directly to customers but offer limited services and require cash payments. 2. A sales branch is a manufacturer-owned wholesaler and is basically a sales force owned by the manufacturer. 3. Agents and brokers are actually wholesalers who do not take title to the products outright. 4. Retailers sell products to wholesalers. 5. Discount stores offer a wide assortment of products but keep services to a minimum.
How are descriptive analytics methods different from the other two types?
A) They answer "what-if?" queries, not "how many?" queries. B) They answer "what-is?" queries, not "what will be?" queries. C) They answer "what to do?" queries, not "what-if?" queries. D) They answer "what will be?" queries, not "what to do?" queries.
Partners Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. An offer to lend you the $50,000 also comes from Community Bank, but it will charge 6.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?
A. 1.56% B. 1.30% C. 1.09% D. 0.91% E. 0.72%