Who has the responsibility for the evaluation of the quality of an investment?

What will be an ideal response?


The investor.

Business

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Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year:  Myrtle Laurel TotalSales$560,000 $336,000  $896,000Variable Costs 176,000  174,000   350,000Contribution Margin 384,000  162,000   546,000Fixed Costs (allocated) 284,375  170,625   455,000Profit Margin$99,625 $(8,625) $91,000What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable?

A. $384,000 profit B. $99,625 profit C. $91,000 profit D. $71,000 loss

Business

A check drawn on a bank is an order to pay a sum of money and an authorization to charge the amount to the drawer's account. The drawer may countermand this order by which of the following?

a. A canceled check. b. A stop payment order. c. A banker's acceptance. d. A time draft.

Business

What is the proper treatment of a loss on disposal of equipment when using the indirect method to complete the cash flows from operating activities section?

A. Subtract the loss from net income. B. Disregard the loss because it relates to an investing activity. C. Disregard the loss because it relates to a financing activity. D. Add the loss to net income.

Business

The study of personal finance involves how people _____ their financial resources

a. spend b. save c. invest d. All of these.

Business