The arbitrary approach to setting an advertising budget often results in inappropriate spending of the firm's resources.
Answer the following statement true (T) or false (F)
True
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Last year Rosenberg Corp. had $195,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?
A. 4.36% B. 4.57% C. 4.80% D. 5.04% E. 5.30%
During the time that the Glass-Steagall Act was in effect, which banking authority wanted to allow banks to be able to engage in more nonbanking activities through operating subsidiaries?
A. The Federal Reserve B. The Office of Comptroller of the Currency C. The U.S. Treasury Department D. The Federal Deposit Insurance Corporation
Managerial Skills (Scenario)Adam, Brenda, Carl, and Dan are employees in the same organization. Adam is the shift manager, Brenda is the district manager, Carl is the regional manager and Dan is the project leader. Adam manages the employees who produce the organization's product. After noticing his excellent work, he is promoted to division manager. Carl on the other hand, after a disciplinary proceeding is assigned to the post of office manager. Ethan is the managing director of the same organization.Which of the following is true for Adam before his promotion?
A. His technical skills are of the utmost priority. B. His conceptual skills are of the utmost priority. C. He need not possess any human skills. D. He need not have any empirical skills
Adrianne may form a limited liability company by filing articles of organization in a designated state office, even if she is the only member of the company
Indicate whether the statement is true or false