The price of Netflix stock dropped sharply after customers responded negatively to a change in pricing policies. The change in stock price illustrates which principle?
A) Market prices reflect information.
B) Individuals respond to incentives.
C) Cash flows are the source of value.
D) The time-value of money.
Answer: A
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a. They are valued on the balance sheet at cost. b. They can consist of debt, but not equity, securities. c. They are purchased to be held to maturity. d. Changes in market value are reflected in net income.
At which level of management will one find conceptual and decision skills most utilized? Why?
What will be an ideal response?
Why do governments impose tariffs?
a. To protect domestic industries from foreign competition. b. To raise revenues. c. To attempt to improve their balance of trade. d. Governments impose tariffs for all of the above reasons.