Which of the following is not a reason to carry inventory?
A. To keep the stock out of the hands of competitors
B. To meet variation in product demand
C. To maintain independence of operations
D. To provide a safeguard for variation in raw material delivery time
E. To take advantage of economic purchase-order size
Answer: A
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Japan has established trade barriers in the form of tariffs against
A. U.S. beef, citrus, and dairy products. B. European automakers. C. Chinese vegetables and fruits, but not rice. D. European electrical goods.
The current price of a stock is $22, and at the end of one year its price will be either $27 or $17. The annual risk-free rate is 6.0%, based on daily compounding. A 1-year call option on the stock, with an exercise price of $22, is available. Based on the binomial model, what is the option's value? (Hint: Use daily compounding.)
A. $2.43 B. $2.70 C. $2.99 D. $3.29 E. $3.62
The Fifth Amendment privilege against self-incrimination applies only to natural persons and
not to corporations and partnerships. Indicate whether the statement is true or false
Evaluating the performance of a mutual fund involves which of the following activities?
I. Determining its rate of return II. Calculating its net asset value III. Examining its turnover ratio IV. Examining its administrative expenses A) I and II B) I, III, and IV C) II, III, and IV D) All four