When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as
a. an increase in the investment account.
b. a deduction from the investment account.
c. dividend revenue.
d. a deduction from the investor's share of the investee's profits.
B
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The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.
A. tangibles B. reliability C. assurance D. empathy E. responsiveness
Which of the following statements about a salesperson's role is true?
A. The salesperson only aims to sell the customer. B. The salesperson rarely serves as a link between the firm and its customers. C. The salesperson represents the customer back inside the selling firm. D. A salesperson is seldom responsible for negotiating prices or diagnosing technical problems. E. The salesperson also holds titles such as management specialist and chief engineer.
Which of the following is a risk of outsourcing information systems (IS)/information technology (IT) functions?
A) It is easier to end an agreement between a vendor and an organization that hired the vendor. B) It provides the hiring organization with too many choices. C) It involves the potential loss of intellectual capital. D) It invariably results in diseconomies of scale.
The cost of equity for RJ Corporation is 8.4 percent and the debt-equity ratio is .6. The expected return on the market is 10.4 percent and the risk-free rate is 3.8 percent. Using the common assumption for the debt beta, what is the asset beta?
A) .70 B) .44 C) .62 D) .67 E) .59