According to the market segmentation theory of the term structure,
A) the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity.
B) bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time.
C) investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward.
D) all of the above.
E) none of the above.
D
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Answer the following statements true (T) or false (F)
1. All intangible assets must be amortized each year. 2. According to Generally Accepted Accounting Principles, if the fair value of goodwill decreases below its book value, an impairment loss must be recorded. 3. A trademark should not be amortized over its useful life. 4. According to Generally Accepted Accounting Principles, goodwill must be amortized 5. Goodwill is only recorded by an acquiring company when it purchases another company and pays more for that company than the market value of its net assets.
Argosy Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Argosy uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 4 pounds per unit; $4 per pound Direct labor: 4 hours per unit; $17 per hour Argosy produced 5000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 23,000 direct labor hours and actual total direct labor costs were $390,000. The direct labor efficiency variance was $51,000 U. Which of the following is a logical explanation for this variance? A) The company used more labor hours than allowed by the standards. B) The company paid a higher cost per hour for labor than allowed by the standards. C) The company used a higher quantity of direct materials than allowed by the standards. D) The company paid a higher cost for the direct materials than allowed by the standards.
Alina is a newly promoted manager at an office supply company. According to Douglas McGregor’s classification, she takes a Theory Y view of employees. Which of the following is likely to be TRUE of Alina?
a. She allows her employees to be more self-directed. b. She relies most on monetary incentives to get good work from her employees. c. She will enforce strict productivity goals. d. She doubts the creative potential of her individual employees.
To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner
a. True b. False Indicate whether the statement is true or false