Brad started a pest control business. To protect his personal assets against liability arising out of the business, Brad incorporated the business. Brad's use of the corporate form of organization to shield against personal liability claims illustrates
A) fundamental risk.
B) noninsurance transfer.
C) risk retention.
D) objective risk.
Answer: B
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When does it make sense for a company to pursue selective partnering to establish industry standards?
a. There are high barriers to imitation, the firm has the requisite skills, and there are no capable competitors. b. There are low barriers to imitation, the firm does not have the requisite skills, and there are capable competitors. c. There are low barriers to imitation, the firm has the requisite skills, and there are capable competitors. d. There are high barriers to imitation, the firm does not have the requisite skills, and there are capable competitors. e. There are high barriers to imitation, the firm has the requisite skills, and there are capable competitors.
Which of the following is a least constructive coping mechanism to change?
a. Proselytization b. Interrogation c. Complaints d. Sabotage
When writing a message offering constructive criticism, one's primary consideration should be
a. identifying who made the error. b. offering input that could benefit many. c. getting even for the mistake that was made. d. none of the above.
Below is information related to two companies: Company 1Company 2Return on assets 8.2% 6.3%Debt to equity 67.2% 53.4%Based on the ratios above, what is generally true about these two companies?
A. Company 1 has lower profitability and lower risk. B. Company 1 has higher profitability and lower risk. C. Company 1 has lower profitability and higher risk. D. Company 1 has higher profitability and higher risk.