A criticism of adjusting the discount rate to account for political risk is that adjusting the discount rate for political risk penalizes early cash flows too heavily while not penalizing distant cash flows enough
Indicate whether the statement is true or false.
Answer: TRUE
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Which of the following is one of the three lines of organizational power?
A. lines of supply B. lines of command C. lines of reference D. lines of personal power
Accommodation is considered a goodwill gesture when attempting to find a solution to a problem
Indicate whether the statement is true or false
Brock Brocklin, a stockbroker, invited Tom Thomson, a long-term client, to lunch to sell some stocks. Tom brought a friend, Clive Clernons. Brock mistakenly recommended Morden Plastics as being a good investment
The three martinis clouded his memory: the company name should have been Borden Plastics. Tom didn't buy Morden Plastics, but Clive did and lost heavily. Now Clive wants to sue Brock for negligence advice. Which of the following is true? A) There is no right to sue for negligent use of words. B) There was no contract between Brock and Clive so Clive has no legal basis to sue. C) Clive will have to establish that he was in the scope of duty owed by Brock to win his action. D) Clive will only have to prove that Brock was careless to win his action. E) Clive should sue Tom for breach of fiduciary duty.
The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?
A. A utility bill was received for the current month, to be paid in the following month. B. Cash was received from providing services to a customer. C. The company paid an amount due on credit. D. Advertising expense for the month was paid in cash. E. Equipment was purchased for cash.