Michael purchased 1000 shares of stock at a price of $16 a share. He utilized his 50% margin account to make the purchase. What is Michael's initial equity in this investment?
A) -$16,000
B) $16,000
C) $8,000
D) -$8,000
Answer: C
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A retailer with strong channel control may force manufacturers to give price guarantees and may also use selling against the brand
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. Because bankruptcy requires that corporate bondholders be paid in full before stockholders receive anything, bondholders generally prefer to see corporate managers invest in high risk/high return projects rather than low risk/low return projects. B. Since bondholders receive fixed payments, they do not share in the gains if risky projects turn out to be highly successful. However, they do share in the losses if risky projects fail and drive the firm into bankruptcy. Therefore, bondholders generally prefer to see corporate managers invest in low risk/low return projects rather than high risk/high return projects. C. One advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership. D. One drawback of forming a corporation is that you lose the limited liability that you would otherwise receive as a proprietor. E. Potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock.
You work for a company that is marketing a new line of swimsuits. These swimsuits have a unique style that differs from other swimsuits, and you want to spread awareness among consumers and spark their interest. The swimsuit will be sold in stores nationwide. Probably the best promotion mix elements to use in your integrated marketing communications strategy are
A. personal selling and sales promotion. B. advertising and personal selling. C. advertising and sales promotion. D. public relations and sales promotion. E. personal selling and public relations.
Workers can be made aware of their direct impact on the company’s bottom line using a form of full disclosure known as ____.
a. Closed book management b. Open book management c. Low-level book management d. Impact book management