Which of the following is not a downside of portfolio models used to assist a firm in balancing its portfolio of businesses?
A. Portfolio models rely on loose rules regarding resource allocation across the SBUs.
B. Portfolio models view each SBU as a stand-alone entity.
C. Portfolio models compare SBUs on only two dimensions under the assumption that these are the only factors that matter.
D. The evaluation process risks becoming mechanical and oversimplified.
Answer: A
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If cash is received from customers in payment for services that have not yet been performed, the business would record the cash receipt as:
A. A credit to accounts payable. B. A credit to an unearned revenue account. C. A debit to an unearned revenue account. D. A credit to a prepaid expense account. E. A debit to a prepaid expense account.
Inspired by his trip to Greece, the gentleman farmer decided he needed a Mykonos-style windmill pumping a pond for his sheep and orchard. His earned value table for the project appears below
At the end of June, what was the estimated time to completion and the estimated cumulative cost to completion? Activity Jan Feb Mar Apr May Jun Jul Plan % Complete Earned Value Grading 500 150 650 100% 650 Footings 200 150 350 100% 350 Foundation 800 300 1,100 80% 880 Masonry 300 300 200 800 70% 560 Interior 700 2,000 2,700 50% 1,350 Pump Install 3,000 3,000 40% 1,200 Painting 350 400 750 25% 188 Monthly Plan 500 350 950 600 1,000 2,550 3,400 9,350 5,178 Cumulative 500 850 1,800 2,400 3,400 5,950 9,350 Monthly Actual 600 400 900 800 800 2,800 0 Cumulative Actual 600 1,000 1,900 2,700 3,500 6,300
The first unit produced in a process takes 400 hours. As the number of units produced doubles, production time decreases by 20%. Using the arithmetic approach, calculate the production time for the 128th unit.
a. 84 hours b. 256 hours c. 105 hours d. 72 hours
ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat. After a few months, ABC begins to hear of injuries when riders crash into water or boats. In hopes of escaping liability, the president of ABC Company decides to discontinue business and sell all assets to XYZ Company. The president of XYZ Company is excited to purchase the assets at a bargain price and help
ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents. Which of the following is true in a majority of states applying the traditional successor liability rule? a. XYZ Company will not be held liable for the accidents so long as there is no contractual agreement by which it agrees to accept liability. b. XYZ Company will only be held liable if it continues to manufacture the same product lines as ABC. c. XYZ Company will only be held liable if it keeps the same tax number as ABC Company. d. XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.