You have $3,000 to invest, but will need the funds in a year to make a tuition payment. You should
A) put the money in a corporate bond.
B) buy a one-year CD.
C) buy stocks of relatively stable firms that have low risk.
D) invest in a diversified stock mutual fund.
Answer: B
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In a decentralized company in which divisions may buy goods from one another, the transfer pricing system should be designed primarily to
a. increase the consolidated value of inventory. b. allow division managers to buy from outsiders. c. minimize the degree of autonomy of division managers. d. aid in the appraisal and motivation of managerial performance.
Firms like Dunkin' Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________
a. single source market b. economy of scale c. ministore d. economy of scope e. multi-brand strategy
In the EPQ model, given that Q is the optimal production quantity, d is the demand rate, p is the production rate, and H is the holding cost per unit per year, the total annual holding cost equation is given by ______.
A. Q/2 ? ([d–p]/p) B. Q x ([p–d]/p) x H C. Q/2 x ([p–d]/p) x H D. Q/2 x H
For a new venture, platforming can be important for
a. improving operating profits from manufactured products b. higher utilization of capital invested in plant and equipment c. tackling new adjacent market segments by allowing a company to develop and test new products quickly at little cost d. All of the above