Answer the following statements true (T) or false (F)
1. For the vertical analysis of the balance sheet, the base amount is also the total of liabilities and
stockholders' equity.
2. A common-size statement reports the same percentages that appear in a vertical analysis.
3. Dollar value bias is the bias one sees from comparing numbers in relative (dollars) rather than
absolute (percentage) terms.
4. Benchmarking is the practice of comparing a company with other leading companies.
5. Benchmarking is the comparison of a company's current year results with a previous year's
performance.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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One way to understand rights is to identify them with a person's wants. Rights protect these wants even though, objectively, they may conflict with what is really good for a person.
Answer the following statement true (T) or false (F)
Certain federal guidelines significantly constrain and often prohibit mergers that could result from a purchase of assets
Indicate whether the statement is true or false
Very Big Corporation provides tire sales, tire and rim services, auto maintenance, and sells auto parts and accessories. It is the most diverse vehicle parts and repair business in Denver, Colorado. The company has twenty-five employees at its Denver location. T and R Business only sells, installs, and repairs tires and rims-it has four employees. AM Business services vehicles and has three employees. APA Business sells auto parts and accessories-it has twelve employees. What is the likelihood that these small businesses are capable of competing against Very Big Corporation?
A. A number of small firms, each competing in its own particular area and its own particular way, together have the desired competitive effect to challenge large firms. B. Small firms cannot compete with larger firms. C. Large businesses that provide a one-stop approach to goods and services make it impossible for small firms to compete. D. Small firms challenge larger established firm causing them to cut costs.
An example of the "selecting a vendor" stage of the buying process is visiting the manufacturer's Web site to gather information or arrange an exchange for a purchase you already made.
Answer the following statement true (T) or false (F)