A declining stock market index due to lower share prices
A) reduces people's wealth and as a result may reduce their willingness to spend.
B) increases people's wealth and as a result may increase their willingness to spend.
C) decreases the amount of funds that business firms can raise by selling newly issued stock.
D) both A and C of the above.
E) both B and C of the above.
D
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The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds
Indicate whether the statement is true or false
At the beginning of the fiscal year, office supplies inventory amounted to $600 . During the year, office supplies amounting to $8,800 were purchased. This amount was debited to office supplies expense. An inventory of office supplies at the end of the fiscal year showed $400 of supplies remaining. The beginning of the year balance is still reflected in the office supplies inventory account. What
is the required amount of the adjustment to the office supplies expense account? a. $9,000 debit b. $200 debit c. $8,400 credit d. $8,800 credit
Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of accretion
Indicate whether the statement is true or false
A key distinction between a risk response and a contingency plan is
A. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails. B. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. C. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. D. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. E. A risk response is established only for moderate risks while contingency plans are established for major risks.