The "threat hypothesis"
A) increases agency monitoring costs.
B) reduces management's tendency to spend freely.
C) increases the agency problem.
D) encourages management to use debt to further their own interests.
B
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What sort of questions force the respondent to choose a specific response?
A. open-ended B. leading C. closed-ended D. loaded
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year: Assets available for use $1,200,000 Book Value $1,500,000 Market Value Residual income $108,000 Return on investment 14% Refer to Thunder Sports Enterprises. If expenses increased by $15,000 in the Basketball Division,
a. return on investment would decrease. b. residual income would increase. c. the target rate of return would decrease. d. asset turnover would decrease.
Joint costs include all materials, labor and overhead that are incurred before the split-off point
Indicate whether the statement is true or false
In the event of liquidation, a(n) _____ has a claim on assets only after the senior debt has been paid off.?
A. ?debenture B. ?income bond C. ?indenture D. ?subordinated debenture E. ?mortgage bond