The Revised Model Business Corporation ACT (RMBCA) provides that corporate existence begins when the articles of incorporation are filed
Indicate whether the statement is true or false
TRUE
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Which of the following is a TRUE statement?
A) Stockholders are guaranteed annual dividends. B) Stockholders receive their proportionate share of any assets remaining after the corporation pays its debts and liquidates. C) Stockholders may authorize a business contract on behalf of the corporation. D) Stockholders may vote only if they physically attend the annual stockholders' meeting.
Which of the following is NOT a question you should ask yourself when assessing your use of statistics?
a. Are the statistics representative of what I claim they measure? b. Am I being totally honest in my use of these statistics? c. Have I used statistics sparingly? d. Are the statistics I used convincing?
Match the following terms with the appropriate definition.
A. A method that allocates equal amounts of an asset's cost (less any salvage value) to depreciation expense during its useful life. B. Any 12 consecutive months or 52-week period that a company adopts for its annual reporting period. C. The accounting system that recognizes revenue when cash is received and records expenses when cash is paid. D. A set of financial statements that covers less than one year, typically one, three, or six months of activity. E. Revenues earned in a period that are both unrecorded and not yet received in cash or other assets. F. The process of allocating the costs of long-term assets to the income statement over their expected useful lives. G. Aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses. H. The accounting system that uses the adjusting process to recognize revenues when earned and expenses when incurred. I. Assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years.
Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?
A. The manufacturer is likely to see little profit until the power of buyers improves. B. The company is likely to be very profitable as long as the threat to entry is low. C. This firm is an example of near-perfect competition. D. In this scenario, suppliers are likely to create and sell effective substitutes.