Scenario 16.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves
over 1.9 million bank accounts. Refer to Scenario 16.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2% of its total annual sales to advertising. However, one problem with this method is that
A. it makes the bookkeeping too difficult.
B. it is tied too closely to sales forecasts.
C. a sales decline leads to an increase in the advertising appropriation.
D. a drop in sales would cause a drop in the advertising budget.
E. competitors may have different advertising objectives.
Answer: D
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Which of the following highlights the upcoming section of the presentation?
A) Presentation outline B) Program details C) Navigation slides D) Title slides E) Handouts
Landmark Corp. buys $350,000 of Schroeter Company's 8%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. The journal entry to record the purchase should include:
A. A debit to Short-Term Investments-AFS $350,000. B. A debit to Debt Investments-AFS $350,000. C. A debit to Cash $350,000. D. A debit to Short-Term Investments-Trading $350,000. E. A debit to Debt Investments-HTM $350,000.
One of the employees at Seyall Industries was continually harassing coworkers. Those coworkers feel that Seyall Industries should have learned more about that individual's background before the employee was hired. They have brought a(n) __________ lawsuit against the company.
A. negligent hiring B. psychological hiring C. arbitration D. peer review
Assume that the current yield curve is upward sloping or normal. This implies that?
A. ?short-term interest rates are more volatile than long-term rates. B. ?inflation is expected to subside in the future. C. ?the economy is at the trough of a business cycle. D. ?long-term bonds are less attractive to investors than short-term bonds. E. ?short-term interest rates are lower than the long-term interest rates.