Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of a pricing is the company depending on?
A) going-rate pricing
B) image pricing
C) market-skimming pricing
D) target pricing
E) markup pricing
B
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A bond premium has the effect of
A) lowering the carrying value of the bond. B) raising the effective interest rate above the face interest rate. C) increasing the amount of cash paid for interest each six months. D) lowering the effective interest rate below the face interest rate.
A manager is faced with having to lay off some of his staff due to financial losses that the company has suffered. Which of the following channels of communication would be MOST appropriate for sharing this news, given the sensitive nature of the message?
a. A well-written, empathetic letter b. A face-to-face meeting with each employee c. A phone call d. An email message
Creditor claims are divided into classes and the highest class must be satisfied in full before going to the next category
a. True b. False Indicate whether the statement is true or false
Micro Electronics completed the following stock issuance transactions
June 7 Issued 4,000 shares of $3 par value common stock for cash of $12 per share Aug. 16 Issued 400 shares of no-par preferred stock for $25,000 cash Sept. 19 Received equipment with a market value of $75,000 in exchange for 5,000 shares of the $3 par value common stock Prepare the journal entries to record these transactions. Explanations are not required. What will be an ideal response