If a financial manager must sell a product in the? future that is currently being manufactured, that individual may reduce the risk of loss from a price decline by 1. entering a futures contract to sell the good 2. entering a futures contract to buy the good 3. establishing a short position 4. establishing a long position
A. ?1 and 3
B. 1 and 4
C. 2 and 3
D. ?2 and 4
Answer: A
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How do the tests of controls affect substantive tests?
Mega Skateboard Supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. Its gross margin ratio equals:
A. 56%. B. 57%. C. 43%. D. 32%. E. 175%.
What is the key to all conditional clauses?
a. If a condition in a contract does not occur, public policy will require only substantial performance by the party for whom the condition failed. b. If a contract contains a conditional clause, the requirement of good faith will be eliminated. c. If a condition in a contract does not occur, one party will probably be discharged without having to perform his or her obligations under the contract. d. If a contract contains a conditional clause, it must be expressly written with specific language.
If your pension fund contained a provision that allowed employees who were leaving the company to retain and transfer any pension benefits earned to another pension plan, it would be said to have
A) transference. B) releasability. C) transportance. D) portability. E) none of the above.