Explain how an organization can go public and why many entrepreneurs prefer not to go public.
What will be an ideal response?
Answer: Initial public stock offerings (IPOs) offer a way to raise capital through federally registered and underwritten sales of shares in the company. Many entrepreneurs fear they will lose control of their business and also fear the expense, time, and effort involved, as well as the overemphasis on stock prices and the possibility of negative relations with investment banking firms.
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Vacation pay is considered a contingent liability.
Answer the following statement true (T) or false (F)
Sprock is a holder in due course on an instrument issued by Klingon. Which of the following defenses could be successfully raised by Klingon?
a. Forgery b. Prior payment c. Breach of contract d. Fraud in the inducement
Lauren, a customer service technician at the Jaguar dealer, listens to a customer rant about hearing wind vibrations in his Jaguar when he drives over 100 miles per hour on the highway. Lauren can show emotional leadership by,
A) informing the customer that he behaves like a lunatic on the highway. B) ranting even louder about the customer being a danger to society. C) laughing at the customer and ask him to imitate the sound of the wind vibration. D) remaining calm until the customer quiets down, and then begin to look at the problem.
Which of the following statements about the surrender cost index for measuring the cost of life insurance is true?
A) It is based on the assumption that the policy will be in force indefinitely. B) It takes into account the settlement options available in the policy. C) It does not consider the cash value in the policy. D) It takes the amount and timing of each dividend into consideration.