Discuss the actions of the Duke faculty members with their ad and their follow-up conduct
Students should use this as an opportunity to discuss how critical it is to view issues with facts and then analyze them appropriately. Often, our opinions and emotions get in the way and blind us to facts and questions that we should be asking and exploring.
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A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face is ________.
A) low profitability B) insolvency C) inability to receive credit D) high leverage
In a BCG growth-share matrix, a relative market share of 10x at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1x at the right end of the scale on its horizontal axis means that
A. the SBU has only 10 percent of the share of its average competitor. B. the growth rate between the SBU and the next largest competitor is actually identical. C. the SBU has only 10 percent of the share of its largest competitor. D. the industry growth rate is declining. E. the SBU has 100 percent of the share of its largest competitor.
Rashad contributes a machine having a basis of $30,000 and an FMV of $25,000 to a partnership in exchange for a 20% interest in partnership capital, profits, and losses. Prior to the contribution, the partnership had recourse liabilities of $20,000. The partnership assumes a $20,000 recourse liability that is owed by Rashad on the machine. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Rashad's basis in his partnership interest is
A. $22,000. B. $18,000. C. $34,000. D. $11,000.
Why is franchising an attractive method of entering a foreign market?
A. because the franchisor does not have to put up any capital to get the business off the ground B. because the franchisor has no liability if the business fails C. because the franchisee assumes the majority of the capital costs and human resource issues D. because there are very few risks involved in franchising E. because the franchisee has no liability if the business fails