The Salty Chip Company includes one coupon having no expiration date with its deluxe snack pack. Upon return of 10 coupons, Salty Chip will send a silver chip clip, which costs Salty Chip $1.50 each. Past experience indicates that 30% of coupons issued will be redeemed. Salty Chip began this promotion in 2015 and sold 1,000,000 deluxe snack packs. During 2015, 90,000 coupons were received and
9,000 chip clips were distributed to customers. The December 31, 2015 balance sheet should include a liability for coupons outstanding of
A) $18,000.
B) $180,000.
C) $31,500.
D) $50,000.
C
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_______ escalation involves management and occurs when resolving an incident is taking too long, there is contention about assignments, or vendor resources are needed.
Fill in the blank(s) with the appropriate word(s).
The two main issues management must consider in designing an international company's structure are (1) ______ to most effectively take advantage of efficiencies gained from specialization of labor and (2) ______ the resulting departments' activities to meet the firm's overall objectives.
What will be an ideal response?
The ________ is a provision in a contract designating the state whose law will govern disputes relating to the contract
A. escape clause B. omnibus clause C. choice of law clause D. forum selection clause
According to the signaling theory that has been proposed to explain differences in firms' capital structures, which of the following actions by the management is taken as a signal that a firm's future prospects are not bright (i.e., not good)? (Assume that the firm has multiple financing alternatives.)
A. A small company raises new capital by issuing of new shares of common stock. B. A mature company raises new capital by issuing of new shares of common stock. C. A small company maintains a reserve borrowing capacity that can be used if good investments are discovered in the future. D. A mature company maintains a reserve borrowing capacity that can be used if good investments are discovered in the future. E. A mature company raises new capital by issuing debt beyond the amount that is indicated by its normal target capital structure.