In the liquidity-preference model, if the nominal interest rate is higher than the equilibrium interest rate
A. both bond prices and nominal interest rate will eventually fall.
B. both bond prices and nominal interest rate will eventually rise further
C. bond prices will fall and nominal interest rate will eventually rise further
D. bond prices will rise and nominal interest rate will eventually fall.
Answer: D
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Hawthorne Corp. entrusted Edgar, an independent accountant, to prepare an audit report to apply for a loan from Daft Corp. Edgar accepted the accuracy of the client's books without proper investigation while representing that he had completed Hawthorne's audit. A careful audit, however, discovers later that an employee of Hawthorne Inc. was regularly embezzling funds. In this scenario, Edgar:
A. will not be liable to Hawthorne Corp. to return the fee for the audit because the loan was not provided by Daft Corp. B. will be liable to Daft Corp. as well as any other creditor who provided loans to Hawthorne Corp. based on his audited financial statements. C. will be liable to Hawthorne Corp. for any losses it suffered from the time when his audit should have discovered the embezzlement. D. will not be liable to any of the parties as he does not owe them the duty of superior skill or careful scrutiny.
In terms of organizational markets, discount stores are examples of ________
A) resellers B) resuppliers C) not-for-profit markets D) producers E) facilitating agents
Which of the following is an advantage of activity–based costing systems over volume–based cost systems?
a. Activity based costing provides more accurate cost information than volume–based cost systems. b. Activity based costing is cheaper to implement than volume–based cost systems. c. Activity based costing provides allocates more than their fair share of overhead costs to low–volume products than volume–based cost systems. d. Activity based costing is easier to implement in companies that have relatively higher proportions of non–unit–level costs.