Answer the following statements true (T) or false (F)
A company has two different products that sell to separate markets. Financial data are as follows:
Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. Because the contribution margin of Product B is negative, it should be dropped.
TRUE
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Under the UCC, an agreement modifying a contract needs no consid¬eration to be binding
Indicate whether the statement is true or false
What is a focus group?
A. It is a method of market research that involves bringing together some people who might use a product and having a researcher question them about it. B. It is a method of market research that focuses on how the industry is performing. C. It is a method of market research that involves collecting statistics about a group of people who might use a product. D. It is a method of research that uses unhappy customers.
A firm should not make an investment if the internal rate of return is
A. greater than the cost of capital. B. less than the cost of capital. C. greater than the interest rate. D. less than the interest rate.
Bonds that can be exchanged for stock are called:
A) callable bonds. B) serial bonds. C) debenture bonds. D) convertible bonds.