Why might someone prefer to invest in a company by purchasing preferred stock rather than common stock?
The primary advantages of owning preferred stock rather than common stock are that preferred stockholders (a) are given preference when dividends are declared and (b) have priority standing in claims to assets of the corporation upon liquidation.
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__________ by administrative agencies provide a practical decision-making process for repetitive, frequent actions that are inappropriate to litigate in courts
a. De novo decisions b. Informal discretionary actions c. Formal rule making d. Informal rule making
________ is an insurance product that will help if you live longer than you expect. For an initial fixed sum or stream of payments, the insurance company agrees to pay you a fixed amount for as long as you live
A) Life insurance proper B) Disability insurance C) An annuity D) Health insurance
If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation:
A. assets decrease and liabilities increase. B. owner's equity increases and revenue increases. C. liabilities decrease and owner's equity decreases. D. assets remain the same and owner's equity remains the same.
A columnist for the LA Times is working to meet a deadline on a story about commuting in Los Angeles. She wants to include information about the current price of gasoline in the Los Angeles metro area, but her source person for this type of information has already gone home for the day. So, she decides to take her own sample as she drives home, writing down the prices she observes as she makes her way from downtown to her neighborhood in the suburbs. Below is the data sample she obtains (units are $/gallon).
(A) Do you think she has obtained a true random sample?
?
(B) What average price could she report, based on the above sample?
(C) What is the 95% confidence interval for the average price range, based on the above sample?
(D) Do you see any issues with the 95% confidence interval calculated in part (C)?
What will be an ideal response?