SHARE is trying to determine how many clients must be serviced in order to cover its monthly service overhead. Using the high-low method, it has determined that the variable cost per client is $800 and that the monthly fixed overhead is $28,000. Assuming an average fee of $1,200 per client, the breakeven point per month is
a. 35 clients.
b. 80 clients.
c. 70 clients.
d. 55 clients.
C
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When a project manager intervenes and tries to negotiate a resolution by using reasoning and persuasion and suggesting alternatives, he or she is ________ the conflict.
Fill in the blank(s) with the appropriate word(s).
Electro Corporation extends credit to its customers to purchase appliances, furniture, and other goods. Electro Corporation could borrow from a bank using its accounts receivable as collateral, thereby placing debt on the balance sheet. Electro Corporation would then use the cash collections from the receivables to repay the bank loan with interest. Instead, Electro Corporation sells the accounts
receivable to the bank for an amount that is less than the cash the bank expects to collect from receivables purchased. The amount takes account of expected defaults, which would reduce the cash generated by the receivables. This difference between the amount paid to Electro Corporation by the bank for the receivables and the amount that the bank expects to collect from the receivables provides the bank with its expected return. Electro Corporation must transfer additional uncollected receivables to the lender/purchaser bank under either of two conditions: (1) if any receivables become uncollectible, and (2) if interest rates rise above a specified level. Which of the following is/are true? a. Electro Corporation bears both credit risk and interest rate risk and should treat the transfer of receivables as a loan, with debt appearing on its balance sheet. b. Electro Corporation bears both credit risk and interest rate risk and should not treat the transfer of receivables as a loan, with no debt appearing on its balance sheet. c. Electro Corporation does not bear credit risk or interest rate risk and should not treat the transfer of receivables as a loan, with no debt appearing on its balance sheet. d. Electro Corporation has no further obligation and will treat this transaction as a sale, with no incremental debt on the balance sheet. e. Electro Corporation bears credit risk but no interest rate risk and should treat the transfer of receivables as a loan, with debt appearing on its balance sheet.
The fraudulent making or alteration of a written document that affects the legal liability of another person is called ________.
A. larceny B. extortion C. forgery D. embezzlement
When Disney acquired Marvel Comics on August 31, 2009, for $4.24 billion, management needed to determine whether or not there were opportunities to strengthen the business, which includes all of the following considerations, except
A. sharing the use of powerful and well-respected brand names across multiple businesses. B. the transferring of valuable resources and capabilities from one business to another. C. combining related value chain activities of different businesses to achieve lower costs. D. forcing cultural independence, operating diversity, and sophisticated analytical responsibility on the businesses to ensure compatibility with the corporate overhead identity. E. encouraging knowledge-sharing and collaborative activity among the businesses.