How would one classify our perception of how fairly we are being treated in comparison with others?
What will be an ideal response?
Equity theory
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A company is planning to introduce a new portable computer to its existing product line. Management must decide whether to make the computer case or buy it from an outside supplier. The lowest outside price is $90. If the case is produced internally, the company will have to purchase new equipment that will yield annual depreciation of $130,000. The company will also need to rent a new production facility at $200,000 a year. At 20,000 cases per year, a preliminary analysis of production costs shows the following: Per case Direct materials $ 40.00Direct labor 32.00Variable overhead 10.00Equipment depreciation 6.50Building rental 10.00Allocated fixed overhead 7.50 Total cost $106.00 Required:(1) Determine whether the company should make the cases or buy
them from the outside supplier.(2) What other factors, besides cost, should the company consider? What will be an ideal response?
Systemic risk is the risk that a large decline in one stock's price could cause investors to sell their stock in other companies
a. True b. False
To forecast interest rates using the Fisher effect, the real interest rate for an upcoming period can be forecasted by subtracting the expected inflation rate over that period from the nominal interest rate quoted for that period
a. True b. False
"Balance sheet insolvency" exists when a venture's total assets exceeds its total debt
Indicate whether the statement is true or false