For a given amount of owners' equity, to achieve higher earnings a greater ROE is required.
a. true
b. false
Answer: a. true
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Which one of the following is an investing activity of a business?
a. Paying for purchases of inventory b. Issuing stock for cash c. Borrowing money from a bank d. Purchasing a manufacturing plant for cash
Our ______ pitch is the level at which we speak most often.
a. habitual b. normal c. optimal d. ideal
Answer the following statements true (T) or false (F)
1. Businesses that adopt the shareholder model must, by definition, pursue short-run profits. 2. A stakeholder perspective argues that while shareholders have important rights, there are other constituents toward whom a company should demonstrate responsibility and concern. 3. Executive stock option plans encourage businesses to take a more long run approach to profit maximization. 4. Financialization is a term used to describe the shareholder models' emphasis on short term profits rather than, say, the delivery of valued or needed goods and services. 5. Financialization is a business strategy that focuses on implement cost-cutting measures followed by leveraged buyouts.
An organization's mission statement describes all of the following EXCEPT
A. its morals. B. what the organization does. C. its values. D. the company's basic purpose. E. its basic good or service.