Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 6.90%. Assuming the pure expectations theory is correct, what is the market's forecast for 1-year rates 1 year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places.
A. 7.16
B. 8.83
C. 6.63
D. 7.42
E. 8.04
Answer: B
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Which one of the following statements regarding internal control is true?
a. Companies can design a system of internal control that is foolproof. b. A well-designed internal control system is a luxury that few companies can afford. c. It is easier to implement an effective internal control system in a small company because of the limited number of employees. d. Large companies are able to devote a substantial amount of resources to internal control systems because these companies have the assets to justify the cost.
An invoice received from a supplier for $8,000 on January 1 with terms 1/15, n/30 means that the company should pay
a. $7,920 before the end of January. b. either $7,920 before January 16 or $8,000 before the end of the month. c. $8,000 between January 2 and January 16. d. $6,800 before January 16.
A manufacturing business pursuing cost leadership will likely
A. rely on experience effects to raise efficiency. B. use advertising to build brand image. C. focus on a narrow market segment. D. overemphasize product engineering.
Looking at Lewin’s basic change model, ______ requires explaining the rationale for change, breaking down the status quo, challenging existing beliefs, and understanding how starting on a new path is essential for the company’s survival.
A. transforming B. refreezing C. reconstructing D. unfreezing