Jim S. buys a $50,000 car. Rather than buying insurance on the car, he sets aside $30,000 in a savings account to cover possible losses due to an accident. He is:
A) self-insuring
B) a moral hazard
C) assuming risk
D) decreasing his risk of physical loss
C
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The direct method is an approach to discriminant analysis that involves estimating the discriminant function so that all the predictors are included simultaneously
Indicate whether the statement is true or false
A major purpose of a cost accounting system is to
A) compute the cost of goods sold for the income statement. B) classify all costs as operating or marketing costs. C) assist creditors in determining whether to grant a loan. D) show investors a company is operating efficiently.
Firms with high proportions of intangibles, whether recognized as assets on the balance sheet or not, tend to rely more on
a. equity financing than on long-term debt financing. b. long-term debt financing than on equity financing. c. short-term debt financing than on long-term debt financing. d. long-term debt financing than on short-term debt financing. e. None of these answer choices is correct.
Which of the following is FALSE when offering guarantees and free trial offers in persuasive messages?
a. Guarantees and free trials convey a negative connotation that the purchase could be regretted or refused. b. The positive connotations of such messages are stronger than the negatives, since the seller has a definite plan for ensuring that buyers get value for money spent. c. If terms of a guarantee are long or complex, they can be included in an enclosure. d. The purpose of the guarantee or free trial is to deter the reader from personally checking the product and comparing it with competing items.