Why is the long-term solvency ratio important for stakeholders?
A) It may indicate excessive inventories that cannot be sold.
B) It indicates the earnings per share a stakeholder can expect to receive.
C) It indicates the efficiency with which a firm uses resources.
D) It indicates the firm's ability to generate cash.
E) It may indicate collapse or takeover opportunities.
Answer: E
Explanation: E) A firm that can't meet its long-term debt obligations is in danger of collapse or takeover, a risk that makes creditors and investors quite cautious.
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Which is true about the "neutral point" on symmetric synthetic scales?
A) there are no neutral points on these scales B) the neutral points should be counted as zeroes C) the neutral point is not considered an origin or zero D) there cannot be a "neutral point" on a synthetic scale E) none of the above
What are the forces in the macroenvironent that affect the organization>
What will be an ideal response?
Information from a manufacturing company's current year income statement follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned. Sales$850,000Cost of goods sold455,000Gross profit$395,000Operating expenses260,000Operating income$ 135,000Interest expense32,000Income before taxes$103,000Income taxes expense12,400Net income$ 90,600
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Rosalie does not like to speak publically. She has a big report to give next week and knows that she needs to practice every day to get better. However, in her heart she does not think that even with the extra practice she will do very well. This scenario is relating to which element of expectancy theory?
a. Expectancy b. Instrumentality c. Effort d. Valence