Which of the following courses of action is best suited for a company in the event of the
economy entering a recession?
A) arranging for a backup partner B) investigating new markets
C) predicting a competitor's target market D) conducting a competitive analysis
B
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A ________ is a contract between the government and an inventor.
A. trademark B. franchise C. trade secret D. patent
Which of the following is an issue that must be addressed in the internal controls for e-commerce?
A) burglar alarms B) tone at the top C) phishing expeditions D) need for outside auditors
Successful teams can complete more tasks and produce more high-quality results than a person working alone.
Answer the following statement true (T) or false (F)
On January 1, 20X4, Pony Company acquired 25% of Stallion Company's common stock at underlying book value of $200,000. Stallion has 80,000 shares of $10 par value, 6 percent cumulative preferred stock outstanding. No dividends are in arrears. Stallion reported net income of $270,000 for 20X4 and paid total dividends of $140,000. Pony uses the equity method to account for this investment.Based on the preceding information, what amount of investment income will Pony Company report from its investment in Stallion for the year?
A. $35,000 B. $67,500 C. $55,500 D. $140,000