There is an inverse relationship between bond ratings and the required return on a bond. The required return is lowest for AAA rated bonds, and required returns increase as the ratings get lower (worse).
Answer the following statement true (T) or false (F)
True
Lower-grade bonds have a higher risk and a more restricted market than higher-grade bonds. Therefore, they offer higher returns than high-grade bonds. See 6-2: Bond Ratings
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Which of the following would be the best example of an output measure?
A. Monthly net profits for the entire store B. Square feet of shelf space allocated to a particular item C. The cost of paying overtime to a clerk who worked late D. The purchase of new inventory E. The expense of running a magazine advertisement
Lois and Benjamin own a chalet in New Mexico and rented it for 12 days for $6,000. The rest of the year, the chalet was used by them and their friends and family. What is the proper tax treatment of the $6,000 income?
A. none of the rental income needs to be reported as part of gross income. B. the amount should be reported on Schedule E. C. the amount should be reported as other income. D. the amount should be reported on Schedule C.
A competitor can lawfully discover a trade secret by performing reverse engineering.
Answer the following statement true (T) or false (F)
A document archiving company develops its promotional budget based on detailed plans from the tasks to be accomplished by its marketing campaign. The company is most likely to be using which of the following methods of promotional budget planning?
A. discount method B. historical patterns method C. task method D. percentage method E. ratio method