Which of the following would be considered part of a firm's business risk?
A. The firm's default risk
B. The risk that some of the firm's bonds will be repaid prior to their maturities
C. The general liability that is associated with the product line the firm manufactures and sells
D. Risk of loss due to currency fluctuations
E. Interest rate reinvestment risk
Answer: C
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_____________is the magnitude of an omission or misstatement in accounting information that will affect the judgment of someone relying on the information
Fill in the blank(s) with correct word
Which of the following is an example of having indirect involvement when entering a competitive market?
A) using retail stores B) using distributors C) using manufacturer's own sales force D) selling through company website
During 2016, Oddie Corp had net income of $300,000. Included in net income was after-tax interest expense of $20,000 on convertible bonds. The $200,000 face value of convertible bonds can be converted into common stock at the rate of 200 shares per $1,000 bond. Prior to the conversion, there were 400,000 shares of common stock outstanding. What is the amount of fully diluted earnings per share?
A) $0.636 B) $0.727 C) $0.750 D) not determinable because the bonds are not dilutive
Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firm spot with over 4.5 billion in sales. It used which new entry strategy in 2005?
A. differentiated B. adaptive C. pioneering D. imitative