Which one of the following is an operating activity of a business?
a. Paying for purchases of inventory
b. Issuing stock for cash
c. Borrowing money from a bank
d. Purchasing a manufacturing plant
a
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Answer the following statements true (T) or false (F)
It can be argued that all leases over one year should be capitalized.
Application forms from employers have a place at the end for your _____
Fill in the blank(s) with correct word
To be effective, firms need to
A. pursue visions that are exclusively financial and not aspirational. B. isolate top managers from the organizational values. C. increase their strategic flexibility by developing product-oriented vision statements. D. back up their visions with strategic commitments that are costly and difficult to reverse.
The principle of diversification tells us that:
A) concentrating an investment in two or three large stocks will eliminate all your risk. B) concentrating an investment in three companies all within the same industry will greatly reduce your overall risk. C) spreading an investment across five diverse companies will not lower your overall risk. D) spreading an investment across many diverse assets will eliminate all the risk. E) spreading an investment across many diverse assets will eliminate idiosyncratic risk.