Which of the following statements is correct??
A. ?If a firm's stockholders are well diversified, we know from theory and from studies of market behavior that corporate risk is not important.
B. ?Undiversified stockholders, including the owners of small businesses, are more concerned about corporate risk than market risk.
C. ?Empirical studies of the determinants of required rates of return (k) have found that only market risk affects stock prices.
D. ?Market risk is important but does not have a direct effect on stock price because it only affects beta.
E. ?Market risk does not play any role in determining the rate of return on an investment.
Answer: B
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Several differences exist when international companies attend trade shows. These differences include each of the following, except:
A) international attendees tend to be senior executives with authority to make purchases B) international attendees want a follow-up after the trade show by a senior executive C) international attendees spend more time at each exhibitor's booth D) international attendees tend to make purchase decisions during the trade show
Mug Shots operates a chain of coffee shops. The company pays rent of $15,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The cost of rent relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively?
A. Fixed cost and fixed cost B. Fixed cost and variable cost C. Variable cost and fixed cost D. Variable cost and variable cost
The difference between the direct method and the indirect methods of preparing the statement of cash flows is primarily visible in which of the following sections?
A) Operating activities section only B) Investing activities section only C) Both operating and investing activities D) Both investing and financing activities
Which of these is more characteristic of a leader?
A) Strive for control B) Do things right C) Demand respect D) Inspire trust