Which of the following transactions would not be reported in the one of the three main activity sections of the statement of cash flows prepared under the indirect method?
a. A purchase of treasury stock
b. A purchase of an operational asset by issuing common stock
c. A loan made to another company
d. Patent amortization
e. A gain on the sale of a plant asset
B
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Research has consistently shown firms that achieve both cost and differentiation advantages tend to perform
A. higher than firms that achieve either a cost or a differentiation advantage. B. about the same as firms that are "stuck-in-the-middle." C. at about the same level as firms that achieve either cost or differentiation advantages. D. lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages.
Organizations are ________ systems, which means that they are affected by and in turn affect their external environments.
A. output B. closed C. open D. social E. input
The one factor that company executives need not worry about when their company is managing many diverse, unrelated firms is to
A. know what to do if a business unit stumbles. B. understand the true value of strategic investment proposals by business-unit managers. C. pick business-unit heads having the requisite combination of managerial skills and know-how to motivate people. D. "manage by the numbers"-that is, keep a close track on the financial and operating results of each subsidiary. E. stay abreast of what's happening in each industry and subsidiary.
A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 8 hours a day
The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6 hours a day. (a) What was their raw material and their labor productivity with the standard equipment? (b) What is their raw material and their labor productivity with the larger machine? (c) What is the change in each productivity measure?