Which is a trait of excessive control?

A. trying to recoup “sunk costs”
B. putting agreement ahead of good problem-solving
C. combines high power with low visibility
D. continuing in a failed course of action


C. combines high power with low visibility

Business

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A warranty that guarantees that a defective product will be repaired or replaced free during the warranty period is known as a(n) ________

A) implied warranty B) full warranty C) disclaimer warranty D) limited warranty

Business

The most important audience for a mission statement is employees, for it helps build a common understanding of an organization's purpose and the basis of its intended competitive advantage in the marketplace.

Answer the following statement true (T) or false (F)

Business

Funky Chicken is a calendar year general partnership with the following current year information:    Operating loss$(300,000)Liabilities:   Note payable, Big Bank 30,000 Note payable, June Cross 20,000 On January 1 June Cross bought 60% of Funky Chicken for $45,000. How much of the operating loss may Cross deduct currently? Assume the excess business loss limitation does not apply.

A. $65,000 B. $80,000 C. $57,000 D. $75,000

Business

Mesopotamian Materials Inc. (MMI) has two decentralized divisions (Ur and Babylon) that have decision making responsibility over the amount of resources invested in their divisions. Recent financial extracts for both divisions are presented below:


*Net income is after tax but before interest

MMI's weighted average cost of capital (WACC) is 11.5%. The MMI measures division performance based on the book value of net assets. The producer price index 15 years ago was 100, 116 five years ago, and currently is 125.

Using historical costs, which is true?

A. Babylon is a profit center
B. At a WACC of 5%, Ur's residual income is lower than Babylon's by $122
C. At the planned WACC (11.5%), Ur's residual income is higher than Babylon's by $87
D. At a WACC of 25%, Ur's residual income is higher than Babylon's by $122
E. None of the above

Business