Divisions in a decentralized company can be created along which of the following lines?
A) geographical
B) types of goods or services produced
C) type of responsibility given to divisional manager
D) two or more of the other answers are correct
E) none of these
D
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Which of the following is not true?
a. Firms must test goodwill annually for impairment. b. Goodwill is the excess of the amount paid for the acquired company over the fair value of identifiable net assets. c. Goodwill, because it includes unidentifiable intangible resources, has an indefinite life. d. U.S. GAAP requires tests for impairment of goodwill as part of a reporting unit because a firm cannot separate goodwill from other assets. e. U.S. GAAP requires firms to amortize goodwill over its expected useful life.
Which of the following statements is true of the reasonable person standard used in a negligence lawsuit?
A) The reasonable-person standard is highly subjective. B) The judge or jury determines what a reasonable person would do in a particular situation. C) The code of ethics followed by the defendant's organization is used to determine the behavior of a reasonable person in a particular situation. D) The reasonable-person standard is used to establish causation.
Heinz Klein is a mechanic. Bettina Lopez has some money to invest. They agree that Bettina will lend money to Heinz to buy cars at government sales, fix them up and sell them. They will split the profits
Bettina says that she wants to have nothing to do with the operation of the business. They agree that they will not be partners. Which of the following is TRUE? A) They are not partners because they have specifically agreed not to be partners. B) They are partners because they are sharing profits from a business on a continual basis. C) Bettina is a limited partner and will not be liable for partnership debts beyond her investment. D) The partnership is not registered as a limited partnership so Bettina will be liable for partnership debts. E) Both B and D
Use the information in Table 5.1. Using the traditional method, which product should be scheduled first?
A) Product A B) Product B C) Product C D) Product D