A new small business, Underwater Wildlife, has opened to sell tours of underwater sites around the country and in South America. However, money has to be paid up front by the Underwater staff to book hotels and other travel arrangements before its clients have paid for the tours. That means Underwater is facing a potential

A. insurance difficulty.
B. cash-flow problem.
C. inventory-flow problem.
D. business plan crunch.
E. employee expansion task.


Answer: B

Business

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Colorful, Inc. was incorporated on January 1, 2016. Colorful issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with a 12% dividend rate. Colorful has not paid any dividends yet. In 2019, Colorful had its first profitable year, and on December 31, 2019, Colorful declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders?

A) $9600 B) $38,400 C) $5600 D) $44,000

Business

When the price of a product is set at a level where demand and supply are the same, a state of _____ has been achieved

a. price equilibrium b. stability c. inelastic demand d. symmetry

Business

Current ratio provides a firm's ability to meet its long-term obligations

Indicate whether the statement is true or false

Business

Which of the following companies is involved in foreign licensing?

A. An American electronics company that establishes a subsidiary in Asia to cut down its cost of production B. A European company that grants a company in Asia the rights to produce and sell its products C. An African company that starts a new business venture by working together with an Asian company D. A North American company that buys a small African company and uses it to manufacture its products

Business