Which of the following tasks is NOT the responsibility of the board of directors?
A) setting policies for the corporation
B) authorizing the issuance of stock
C) electing corporate officers
D) managing the company's daily operations
E) approving loans to and from the corporation
D
Explanation: D) Although the board of directors is responsible for setting corporate policy, electing officers, and making major business and finance decisions, they do not actually manage day-to-day operations. However, they are responsible for ensuring that those who do manage daily operations are doing their jobs.
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In designing the organizational structure, management know two concerns, __________ and __________, run counter to each other.
A. earning profits; paying taxes B. geographic dispersion; profit rate C. hiring employees; reducing labor costs D. an effective way to departmentalize; coordinating activities E. sales growth; research and design expenditures
On January 1, Year 1, Rickson Corporation purchased 7,500 shares of AutoTech as an equity method investment for a total of $235,000. The 7,500 shares represent 30% of the outstanding (25,000) shares of AutoTech. Prepare the journal entries for Rickson to record the following transactions and events:Dec. 31, Year 1:AutoTech reported net income of $66,000 for Year 2.Feb. 1, Year 2:Sold 1,875 of the AutoTech shares for $33 per share. ??Nov. 1, Year 2:Rickson received a $0.90 per share cash dividend from AutoTech.Dec. 31, Year 2:AutoTech reported net loss of $46,000 for Year 2.
What will be an ideal response?
Grabbe Enterprises uses the allowance method to account for uncollectible receivables. When an uncollectible account is written off, ________
A) the Bad Debt Expense account is debited B) no entry is required because bad debt expense is estimated at the end of the accounting period C) the write off has no effect on net income D) the Allowance for Bad Debts account is credited
Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yield on the preferred stock is 8.75%. What is the company's after-tax return on the preferred, assuming a 70% dividend exclusion? (Round your final answer to two decimal places.)
A. 9.63% B. 7.83% C. 5.95% D. 7.20% E. 9.55%