Calvin transfers land to a trust. Calvin retains the right to the income from the land for the rest of his life. Upon his death, the land is to be transferred to his daughter, Melissa. Calvin's interest is
A) a remainder interest.
B) a life estate.
C) a reversionary interest.
D) a term certain.
B) a life estate.
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Which of the following statements concerning liquidity and debt is true?
A) Long-term debt is generally less costly than short-term debt. B) The risk of illiquidity does not depend on the mix of short-term versus long-term debt. C) A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt. D) The greater the use of short-term debt, the lower the risk of illiquidity.
Marketing cost analysis starts with the assumption that
A. all marketing expenditures should be treated as overhead expenses. B. marketing expenditures are made for a specific purpose-and so it makes sense to allocate costs to different market segments, customers, or products. C. overall profit is what counts-so it isn't critical if some market segments, products, or customers are unprofitable. D. "natural accounts" are more useful than "functional accounts." E. All these answers are correct.
When Insight Research Associates quotes a marketing research project management will first estimate the cost to conduct the research and produce and deliver the final client report. The next step in determining the price is to add 30% to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing objective.
A. profit-oriented B. market share maximization C. status quo D. sales maximization E. supply-demand equalization
When deciding on the catering budget for her upcoming wedding, Kris was told that typically around 10% of invited guests usually decline. Kris is using a(n) ________ to simplify her decision making.
A. cognitive bias B. confirmation bias C. dialectical inquiry D. heuristic E. illusion of control