Business firms can stimulate innovation by:
a. hiring employees with low risk tolerance.
b. telling employees that they have the freedom to fail.
c. using micromanagement techniques.
d. curbing research activities.
ANSWER: b
To foster innovation, companies can let their employees know that they have the freedom to fail.
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Blanton Corporation purchased 35% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives from Worton Corporation?
A) debit Investment in Worton Corporation; credit Cash B) debit Cash; credit Dividend Revenue C) debit Investment in Worton Corporation; credit Income of Worton Corporation D) debit Cash; credit Investment in Worton Corporation
Xtra Company purchased goodwill from Argus for $144,000. Argus had developed the goodwill over 6 years. How much would Xtra amortize the goodwill for its first year?
A) $8,640 B) $24,000 C) Goodwill is not amortized. D) Not enough information.
The first step in the marketing research process is
A. data analysis. B. problem definition. C. taking action. D. data collection. E. plan development.
A sample of 100 items is randomly selected from a shipment of incoming materials. AQL and LTPD have been established at 0.01 and 0.07, respectively. When four or more defective items are found in a sample, the shipment is rejected
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