Which of the following statements regarding perpetuities is FALSE?
A) To find the value of a perpetuity by discounting one cash flow at a time would take forever.
B) A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.
C) PV of a perpetuity = Image
D) One example of a perpetuity is the British government bond called a consol.
Answer: C
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Which of the following aggregate planning strategies is known to lower employee morale?
A) yield management B) counterseasonal product and service mixing C) changing inventory levels D) varying work force size by hiring or layoffs E) back ordering during high demand periods
Harold says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew. Delivery of the auto has taken place
a. True b. False Indicate whether the statement is true or false
Allison, a dress designer, believes that she has a great deal with a company in Ireland, called Fashion, which has agreed to purchase a number of her dresses. The manager of Fashion, however, insists on delivery of the dresses before payment will be provided. Which of the following would be a good idea for Allison?
a. Allison should insist on a documentary letter of credit provided by an issuing bank promising payment upon proof of delivery of the dresses. b. Allison should insist on a letter of credit issued by the buyer promising payment upon delivery of the dresses. c. Allison should personally deliver the dresses so that she can demand payment while there. d. Allison should turn down the deal because it is too risky.
Lorena is appointed as an agent for Milled Grains, Inc The agency agree¬ment is silent as to the level of sales that Lorena is expected to achieve. She must
a. achieve nothing because the agreement says nothing on the issue. b. attain the level that Lorena achieved with her previous employer. c. maintain the level Milled Grains attained before Lorena became an agent. d. use reasonable diligence and skill in selling.