Current accounting standards require that the discount rate used for pension plans be:
A. the average market rate since the beginning of the plan.
B. estimated future average market rates.
C. current market rate for the year.
D. the rates at which the pension benefits could effectively be settled.
Answer: D
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Jones contracts to buy a computer from Martin for $1500 . The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software. Is this contract covered by the UCC or common law?
For a corporation such as AT&T, what are the two primary advantages of equity financing?
A. It never has to be paid back and flotation costs are low. B. There is no obligation to pay dividends or to repay the money obtained from the sale of stock. C. Interest payments are less than debt financing and principal does not have to be repaid. D. Ownership is spread among many individuals and no interest payments are required. E. Investors pay top dollar for stock issues and the corporation has higher ongoing expenses.
An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain _____ in the firm.
a. a minority interest b. a majority interest c. either a minority or a majority interest d. minority dependence