Which of the following statements is FALSE?
A) Leasing allows the party best able to bear the risk to hold it. For example, small firms with a low tolerance for risk may prefer to lease rather than purchase assets.
B) When the lessor is the manufacturer, a lease in which the lessor bears the risk of the residual value can improve incentives and lower agency costs.
C) For leases in which the lessor retains a substantial interest in the asset's residual value, the lessee has more of an incentive to take proper care of an asset that is leased rather than purchased.
D) Whether they appear on the balance sheet or not, lease commitments are a liability for the firm.
Answer: C
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Answer the following statements true (T) or false (F)
1. In interpersonal managerial roles, a manager acts as entrepreneur, disturbance handler, or negotiator. 2. Entrepreneurship means taking risks to try to create a new enterprise. 3. Two types of entrepreneurship include the extrapreneur and the intrapreneur. 4. Successful entrepreneurial companies have been called "gazelles" because of a characteristic they possess, namely an acute sensitivity to danger in the environment.
Answer the following statements true (T) or false (F)
1. The “wow” word of mouth can be just as valuable or even more valuable than negative word of mouth because it can be used as testimonials on the company’s website. 2. Service failures can be turned into service wows due to a positive service recovery and eventually those guests could be turned into evangelists. 3. Yellow and black flags is a system designed for airlines to notice possible service failures and to assign them yellow for caution, possible failure, and black for eminent failure. 4. Employees should be encouraged and even rewarded for soliciting and reporting service failures even if they are their own failure.
The amount of a particular item ordered from a supplier is called the ______.
A. lot size B. batch C. consignment D. quantity of shipment
Old Dominion Antiques Shop reported the following income statement and balance sheet for Year 1:
During Year 1, the company's inventory turnover was 3.76 times and its average number of days to days to sell inventory was 97.1 days.Required:a) Determine the accounts receivable turnover ratio and the average number of days to collect accounts receivable.b) Determine the length of the operating cycle.(Round to one decimal place.)
What will be an ideal response?