At a meeting to announce a merger with another company, which of the following buzzwords is a business leader MOST likely to use to justify the decision?
A) accountability
B) bottom line
C) streamline
D) synergy
E) cooperative
D
Explanation: D) Although accountability, bottom line and streamlining could all be reasons for a merger, the buzzword most often used today to justify mergers is synergy. Synergy refers to the concept of two companies merging so that each company can achieve more than they could individually. It is often used to justify mergers and acquisitions because combined firms often succeed in lowering costs by reducing staff, sharing resources, and otherwise achieving economies of scale.
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Which of the following is correct regarding accrual accounting?
A) Adjusting the accounts is a technique used to accomplish accrual accounting. B) Revenues are recorded when received. C) Expenses are recorded when earned. D) Net income is the difference between cash receipts from customers and cash payments for expenses.
End dates and specific actions in a routine request message should be placed in the A) introduction
B) body. C) closing. D) enclosure notation.
Define rights arbitration
Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows: Year 1$375,000Year 2$350,000Year 3$285,000Year 4$230,000Year 5$185,000?What is the payback period?
A. 2.39 years B. 2.96 years C. 3.51 years D. 3.00 years