Which of the following statements is the assumption on which straight-line depreciation is based?
a. The operating efficiency of the asset decreases in later years.
b. Service value declines as a function of obsolescence rather than time.
c. Service value declines as a function of time rather than use.
d. Physical wear and tear are more important than economic obsolescence.
C
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In order to develop a performance plan, a business first translates the objectives of the market share strategy into a ________
A) communications strategy plan B) break-even plan C) revenue plan D) situational analysis plan E) SWOT analysis plan
Entrepreneurial Opportunities are defined as:
A. a feasibility assessment. B. situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost. C. the entrepreneur's mental processes in deciding whether or not to act on a potential opportunity. D. new market entry through entrepreneur action.
A firm is considering relaxing credit standards which will result in an increase in annual sales from $3 million to $3
75 million, a decrease in the cost of annual sales from $2,225,000 to $2,000,000, an increase in additional profit contribution from sales of $10,000, and an increase in the average collection period of 15 days, from 20 to 35 days. The bad debt loss is expected to increase from 1 percent to 1.5 percent of sales. The firm's required return on investments is 15 percent. The net result of the firm relaxing its credit standards is ________. (Assume a 360-day year.) A) $10,000 B) -$16,250 C) -$26,875 D) -$16,875
The specific types of information that managers need depend on their area of management and on their
A. level within the firm. B. understanding of data. C. background in computer science. D. use of the information. E. accounting background.