Which of the following financing tactics would most likely help an MNE avoid bankruptcy?
A) integrating e-commerce opportunities with domestic sales in order to maintain a steady balance of income and expenditures
B) agreeing to forward contracts with customers and hedging purchases and sales on future currency rates
C) organizing the capital structure so that the amount of debt financing is twice the level of equity financing
D) keeping the percentage of debt in the capital structure to a level that can be managed even during difficult business conditions
D) keeping the percentage of debt in the capital structure to a level that can be managed even during difficult business conditions
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Which is of the following statements is correct?
A. If demand decreases, then price will decrease. B. If price decreases, then demand will decrease. C. If demand increases, then price will decrease. D. If price increases, then demand will decrease.
After John's income rose by 8 percent, the amount of chicken he consumed fell by 2 percent. This means that
a. his income elasticity for chicken is positive b. chicken is a normal good for John c. his demand curve for chicken shifted to the left d. his demand curve for chicken shifted to the right e. John is spending more of his income on chicken than before
A pest attack destroys half of the California navel orange crop. Simultaneously, the price of kiwi fruit, a substitute for navel oranges, falls. How would you expect these two events to affect the equilibrium in the California navel orange market?
a. The demand for navel oranges would decrease but the supply would remain unchanged, resulting in a lower market equilibrium price and quantity. b. The supply would decrease and the demand would increase, resulting in a higher market equilibrium price and an indeterminate change in market equilibrium quantity. c. Both supply and demand would decrease, resulting in a decrease in equilibrium quantity and an indeterminate change in price. d. Both supply and demand would increase, resulting in an increase in equilibrium quantity and an indeterminate change in price.
Which of the following transactions would be recorded if using the accrual basis of accounting but not if using the cash basis of? accounting?
A. Purchasing inventory on account B. Collecting customer payments C. Paying off loans D. Borrowing money