A joint venture can add significant potential liabilities to the parent company that are not on the face of the balance sheet
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Trein, Inc entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc, a competitor of Trein, was interested in having Mia promote its products but knew of her contract with Trein. E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. If Trein sues E-presto for tortious interference with a
contract, E-presto a. will be able to establish a justification since E-presto was acting to protect an existing economic interest. b. will be able to establish a justification because, in talking to Mia, E-presto was exercising its First Amendment freedom of speech. c. will be able to establish a justification because to decide otherwise would subject Mia to involuntary servitude. d. will not be able to establish a justification.
Aggregate planning in manufacturing ties organizational strategic goals to a production plan
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Which of the following statements is CORRECT?
A. Firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above-average dividend payout ratios. B. One advantage of the residual dividend model is that it leads to a stable dividend payout, which investors like. C. An increase in the stock price when a company cuts its dividend is consistent with signaling theory as postulated by MM. D. If the "clientele effect" is correct, then for a company whose earnings fluctuate, a policy of paying a constant percentage of net income will probably maximize its stock price. E. Stock repurchases make the most sense at times when a company believes its stock is undervalued.
When a reinsurer cedes coverage to another reinsurer, it is called retrocession
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