Briefly explain why the value of $100 received today is greater than the value of $100 received one year from now.
What will be an ideal response?
The following answer points out the key phrases that should appear in students' answers. It is not intended to be an example of complete student response. It might be helpful to provide detailed instructions to students on how brief or in depth you want their answers to be.
The $100 received today can be invested to receive interest. Simple interest is computed only on the initial investment amount. Compound interest includes not only interest on the initial investment, but also interest on the accumulated interest to date.
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Which of the following is a common use of a persuasive message?
A) To increase supplier obligations B) To discourage non-routine results C) To enforce more efficient operating procedures D) When requiring cooperation from other departments E) When requesting action
Which of the following securities is eligible for a cumulative dividend?
A. Debenture bonds B. Preferred stock C. Classified stock D. Common stock E. Founders' stock
Indirect labor is not a component of manufacturing overhead.
Answer the following statement true (T) or false (F)
When a firm develops a drastically simplified version of a product due to lack of purchasing power in a foreign market the process is referred to as:
(a) Forward innovation (b) Backward innovation. (c) Reshoring (d) Outsourcing