Which of the following statements is CORRECT?
A. Under normal conditions, a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt, but using short-term debt would probably increase the firm's risk.
B. Conservative firms generally use no short-term debt and thus have zero current liabilities.
C. A short-term loan can usually be obtained more quickly than a long-term loan, but the cost of short-term debt is normally higher than that of long-term debt.
D. If a firm that can borrow from its bank at a 6% interest rate buys materials on terms of 2/10, net 30, and if it must pay by Day 30 or else be cut off, then we would expect to see zero accounts payable on its balance sheet.
E. If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it will not have an adverse financial impact on your firm if the customer periodically pays off its entire balance.
Answer: A
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Fill in the blank(s) with the appropriate word(s).
Express the following balance sheets for Safety Company in common-size percentages.Safety CompanyBalance SheetsFor the years ended December 31?Year 2Year 1Assets??Cash$ 43,000$ 22,000Accounts receivable38,00042,000Merchandise inventory61,00052,000Prepaid insurance6,0009,000Long-term investments49,00020,000Plant assets (net)218,000218,000Total assets$415,000$363,000???Liabilities and Equity??Current liabilities$ 62,000$ 75,000Long-term liabilities45,00036,000Common stock150,000150,000Retained earnings 158,000 102,000Total liabilities and equity$415,000$363,000
What will be an ideal response?
Who should be appointed to employee green teams?
a. high-functioning employees from the human resources department b. a random cross-section that includes employees from every department c. vested executive leadership d. some of the company’s go-getter employees
The keys to maintaining a broad differentiation strategy are to
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