Which of the following is most likely the final stage of the business buying decision process?
A) problem recognition
B) product specification
C) proposal solicitation
D) order-routine specification
E) supplier performance review
E
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An inconsistency in accounting theory can occur because
A) internally developed goodwill is expensed, while purchased goodwill is capitalized. B) internally developed goodwill is capitalized, while purchased goodwill is expensed. C) internally developed goodwill is amortized, while purchased goodwill is maintained but tested for impairment. D) purchased goodwill is amortized, while internally developed goodwill is maintained but tested for impairment.
A disadvantage of firms that successfully integrate overall cost leadership and differentiation strategies is that they are relatively easy for competitors to imitate.
Answer the following statement true (T) or false (F)
Cash flow from investing activities includes
a. cash purchases of property, plant, and equipment. b. cash sales of marketable securities and investments in securities. c. cash sales of property, plant, and equipment. d. cash sales of intangibles. e. all of the above
Which of the following statements is CORRECT?
A. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer. B. Corporations must use the same depreciation method (e.g., straight line or accelerated) for stockholder reporting and tax purposes. C. Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions. D. Under accelerated depreciation, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV. E. Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.