Other things equal, it is more desirable to have a larger working capital gap
Indicate whether the statement is true or false
FALSE
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Martin is an intern working for Tennessee Fried Chicken (TFC), an international company with over 1,000 franchised restaurants throughout the United States and in 21 other countries. TFC heavily advertises on television and in various print media that its chicken is superior due to its blend of "42 secret herbs and spices." Many have tried to duplicate the recipe unsuccessfully, and burglars have even been caught trying to steal it. One day Martin is called into the president's office for an assignment, and during their conversation, the president leaves the room, leaving Martin alone. Martin notices that the wall safe is open and looks inside, where he sees an envelope labeled "THE RECIPE." He opens it and finds that it is the list of the 42 secret herbs and spices, along with quantities
and order of use. He quickly makes a copy of the recipe and returns the envelope to the safe. That afternoon, he calls Bluto's Fried Chicken, a TFC competitor, and informs Bluto's of the information he possesses, and they arrange a meeting. If Martin sells the recipe to Bluto's, who, if anyone, would be guilty of misappropriation? A. Neither Martin nor Bluto's is guilty of misappropriation because leaving the safe open shows that the secret was not guarded and guarding is necessary to qualify for trade secret protections. B. If Martin sells the recipe to Bluto's, Martin is not guilty of misappropriation but Bluto's is guilty of misappropriation. C. If Martin sells the recipe to Bluto's, Martin is guilty of misappropriation but Bluto's is not guilty of misappropriation. D. If Martin sells the recipe to Bluto's, both Martin and Bluto's are guilty of misappropriation.
The flexible budget formula is an equation that determines budgeted costs for any level of output
Indicate whether the statement is true or false
The United States, Canada, and Mexico created the North American Free Trade Agreement (NAFTA) to lower trade barriers among themselves
Indicate whether the statement is true or false
Under normal circumstances, the weighted average cost of capital is used as the firm's required rate of return because:?
A. as long as the firm's investments earn returns greater than the cost of capital, the value of the firm will not decrease.? B. ?returns below the cost of capital will cover all the fixed costs associated with the capital and provide excess returns to the firm's stockholders. C. ?it is comparable to the average of all the interest rates on debt that currently prevail in the financial markets. D. ?it is an indication of the return the firm is expecting to earn in future from all of its expansion plans. E. ?the weighted average cost of capital remains unchanged if the components costs of capital changes.