Answer the following statements true (T) or false (F)
1. Debt is a relatively inexpensive source of capital because lenders take the least risk among the long-term contributors of capital.
2. Debt capital is less risky than equity capital because a firm is legally obligated to pay interest to bondholders but they are not legally obligated to pay dividends to preferred or common stockholders.
3. Due to its secondary position relative to equity, suppliers of debt capital face greater risk and therefore must be compensated with higher expected returns than suppliers of equity capital.
4. All items on the right-hand side of a firm's balance sheet, excluding current liabilities are sources of capital
5. Generally, the greater a firm's times interest earned ratio, the less able it is to meet payments as they come due.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Discuss six approaches that are used by companies now to stimulate innovation
What will be an ideal response?
________ is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need it.
A. Industrial information exchange B. Intellectual property protection C. Knowledge management D. Repository management E. Business process reengineering
The use of cash-out combinations has raised questions concerning both their purpose and their fairness to minority shareholders. In this context, fairness includes:
a. fair dealing. b. fair price. c. both (a) and (b). d. tender.
Starbucks Loyalty RewardsThe First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history, Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and customers came. Recently consumer quality perception of the Starbucks brand has started to fall. Starbucks started a consumer-response blog to learn more about what consumers expect from Starbucks. One of the most frequent requests was for a customer rewards program. In response Starbucks has started the Starbuckscard rewards which offers free refills on brewed coffee, free beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put coupons in a
national newspaper for those consumers who love coupons and created a new brew of coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will restore customers' loyalty and confidence.Refer to Starbucks. The creation of a consumer-response blog is an example of _____. A. how to increase sales B. technology at its best C. relationship marketing D. good training E. product improvements