A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S. GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause some companies more harm than good
Indicate whether the statement is true or false
True
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______ theory suggests that motivation is the result of the combination of the expectation that effort (E) will lead to performance and that this performance will be instrumental (I) in reaching certain outcomes. It also recognizes that individuals can place different value (V) on any outcome.
A. Expectancy B. Content C. Process D. Equity
The actual direct labor costs are assigned to individual jobs, and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory
Indicate whether the statement is true or false
A new firm is developing its business plan. It will require $735,000 of assets (which equals total invested capital), and it projects $450,000 of sales and $355,000 of operating costs for the first year. Management is reasonably sure of these numbers because of contracts with its customers and suppliers. It can borrow at a rate of 7.5%, but the bank requires it to have a TIE of at least 4.0, and if the TIE falls below this level the bank will call in the loan and the firm will go bankrupt. The firm will use only debt and common equity for financing. What is the maximum debt to capital ratio (measured as debt/total invested capital) the firm can use? (Hint: Find the maximum dollars of interest, then the debt that produces that interest, and then the related debt to capital ratio.) Do not
round your intermediate calculations. A. 46.53% B. 38.78% C. 43.08% D. 34.90% E. 53.85%
Michelle wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making and implementation. Which would you recommend?
A. Joint venture B. Partnership C. Sole proprietorship D. Cooperative E. Corporation