When a firm finances long-term assets with short-term sources of funding, it:
A. improves the leverage ratio.
B. violates the principle of matched maturities.
C. will generally have lower interest expense.
D. reduces the risk of cash shortage.
Answer: B
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Trevor is excited because he is earning extra compensation from Ford to push its newest model of Ford trucks. He plans to use some of this money toward a down payment on a house. This money is referred to as a
A. buy-back allowance. B. merchandise allowance. C. sales contest. D. premium. E. dealer loader.
The separate corporation created abroad and controlled by a company is:
a. a branch. b. a joint venture. c. a division. d. a subsidiary.
A small-scale consulting firm in Hawaii was struggling financially because it was unable to generate enough capital to run its business transactions. To generate capital, the firm decided to use web technologies and digital resources to build long-term associations with current customers and to reach out to new customers. In this scenario, the firm is using concepts that primarily originated in the _____ of American business history.
A. entrepreneurship era B. relationship era C. production era D. industrial era
Who should be involved in designing a compensation survey?
What will be an ideal response?