Answer the following statements true (T) or false (F)
1. One advantage to an issuer of commercial paper is that the issuer eliminates the need for maintaining compensating balances and credit lines with a commercial bank.
2. Factoring accounts receivable, unlike pledging accounts receivable, typically passes the risk of loss on the accounts receivable to the buyer.
3. One major advantage of factoring accounts receivable is that the selling firm receives money from its accounts receivable faster than if it waited until the customers paid.
4. Eurodollar loans are similar to U.S. bank loans in that they are usually short-term to intermediate-term in nature.
5. A Eurodollar loan is a loan denominated in dollars and made by a foreign bank holding dollar deposits.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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All of the following are likely to be unforeseen events except for:
a. A sharp downturn in the economy attributed to something other than the typical economic cycle. b. A natural disaster causing the supply chain to be disrupted. c. The bankruptcy of an important supplier. d. The committed fixed costs for the upcoming year.
Performance management is a kind of compass that indicates a person's actual direction as well as a person's desired direction.
Answer the following statement true (T) or false (F)
Desmond is Cassandra's agent. Despite ethical concerns, Cassandra's legal duties to Desmond do not include
A. compensation. B. cooperation. C. loyalty. D. reimbursement.
The text identifies three methods for estimating the cost of common stock from retained earnings: the CAPM method, the DCF method, and the bond-yield-plus-risk-premium method. However, only the CAPM method always provides an accurate and reliable estimate.
Answer the following statement true (T) or false (F)