A quick ratio that is much smaller than the current ratio indicates that
a. inventories represent a large portion of current assets.
b. the company has a low inventory turnover.
c. inventories represent a small portion of current assets.
d. the company has a high inventory turnover.
A
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Which of the following amounts of a flexible budget changes, within the specified relevant range, with changes in sales volume?
A) sales price per unit B) total fixed costs C) variable cost per unit D) total contribution margin
Which of the following does an active listener do?
A) Works to interpret meaning to understand what a person is saying B) Listens to the speaker without comprehending the information C) Filters out emotional cues D) Perceives speech but not the body language E) Thinks only about what is being said and not about why it is being said
In the context of working relationships between teams, ________ exist when top management centralizes an activity to which a large number of other units must gain access.
A. stabilization relationships B. audit relationships C. work flow relationships D. liaison relationships E. service relationships
The real risk-free rate of interest is expected to remain constant at 3% for the foreseeable future. However, inflation is expected to increase steadily over the next 30 years, so the Treasury yield curve has an upward slope. Assume that the pure expectations theory holds. You are also considering two corporate bonds, one with a 5-year maturity and one with a 10-year maturity. Both have the same default and liquidity risks. Given these assumptions, which of these statements is CORRECT?
A. Since the pure expectations theory holds, the 10-year corporate bond must have the same yield as the 5-year corporate bond. B. Since the pure expectations theory holds, all 5-year Treasury bonds must have higher yields than all 10-year Treasury bonds. C. Since the pure expectations theory holds, all 10-year corporate bonds must have the same yield as 10-year Treasury bonds. D. The 10-year Treasury bond must have a higher yield than the 5-year corporate bond. E. The 10-year corporate bond must have a higher yield than the 5-year corporate bond.