Direct cause-and-effect relationships between revenues and expenses can usually be demonstrated
Indicate whether the statement is true or false
False
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Oscar drove his 1963 Rambler automobile to the Park & Run, Inc. parking garage. Oscar delivered the keys to the attendant and left the premises. The attendant parked the car. Oscar did not tell the attendant that there was an antique painting valued at $5,000 in the trunk of the car. A thief entered the parking garage, pried open the trunk of Oscar's car, and stole the painting. In this context, identify the correct statement.
A. Park & Run is a bailee to both the automobile and the painting. B. A bailment for the painting was created automatically when Park & Run accepted delivery and possession of the car. C. Park & Run is a bailee only to the automobile, but not to the painting. D. A bailment for the car or the painting was not created since Park & Run did not make an express warranty.
Generally speaking, a higher financial leverage ratio will result in an increase in a firms ROE and also reduce risk to shareholders
Indicate whether the statement is true or false
The antifraud provisions of the 1934 Act would prohibit which of the following?
A) Lying about the value of the firm's assets to sell stock B) Disclosing that the firm has discovered oil on its property in order to sell stock C) Telling about the bad health of the CEO in a transaction to purchase stock D) Not disclosing the salaries of secretaries of a large firm whose stock is being sold
A corporation may be an incorporator of another corporation
Indicate whether the statement is true or false