Organized stock exchanges provide the benefits of a continuous market, fair security pricing, and
helping businesses raise new capital.
Indicate whether the statement is true or false
TRUE
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The entry to record the declaration of a cash dividend will
a. not affect working capital. b. reduce working capital. c. not affect total stockholders' equity. d. increase total stockholders' equity.
A common criticism of the marketing system is that intermediaries ________
A) are too few in number B) mark up prices beyond the value of their services C) provide only essential services D) undervalue their service costs E) are overly protective of manufacturers' interests
A supplier has just been awarded a large contract by your company. As an employee in purchasing, you were largely responsible for awarding that supplier the contract. The supplier's sales representative has just called and would like to take you to lunch to thank you for the support. Going to lunch with the sale representative does not present any ethical problems
Indicate whether the statement is true or false
Which one of the following statements is TRUE?
A. A corporate golf club membership is an example of a nonpecuniary benefit B. Firms borrowing money have greater flexibility to use that money when there are debt covenants. C. When lenders protect themselves from the risk of asset switching by raising the interest rate, the firm's WACC can decrease. D. A lender calling in a corporate loan and then lending the funds out to a safer borrower is an example of asset switching. E. A supplier substituting a lower-quality raw material without approval is an example of asset switching.