If a firm's managers want to maximize stock price, it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.
Answer the following statement true (T) or false (F)
True
Stock price maximization requires efficient, low-cost plants that produce high-quality goods and services that are sold at the lowest possible prices. It also requires the development of products that consumers want and need. Finally, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise, and well located business establishments. See 1-3: What Goal(s) Should Businesses Pursue?
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Under the equity method, dividend revenue is treated as ________.
A) a debit to revenue from investments B) dividend revenue C) a return of capital D) a credit to current assets
The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. This is an example of a:
A. contest B. sales promotion game C. sweepstakes D. push money deal E. POP (participant of Pillsbury)
Which one of the following statements correctly describes the major drawback of a zero-coupon bond?
A) Unless the bond is held in a tax-sheltered account, the investor must pay taxes on the annual accrued interest even though no interest is actually received. B) The conversion feature found on most zero-coupon bonds generally requires the investor to switch to a coupon-bearing bond after a period of 5 years. C) The lack of an annual coupon basically prohibits the investor from locking in a high rate of return. D) Because there is no reinvestment of a coupon payment, large capital losses accrue when interest rates decline.
Every partnership must have at least one limited partner.
Answer the following statement true (T) or false (F)