In theory, capital budgeting decisions should depend solely on forecasted cash flows and the opportunity cost of capital. The decision criterion should not be affected by managers' tastes, choice of accounting method, or the profitability of other independent projects.
Answer the following statement true (T) or false (F)
True
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Those reflecting the ______ school define a social entrepreneur is someone who starts a business with
a social purpose. A. nonprofit sector B. corporate world C. social enterprise D. social innovation
Victor Corporation issues $1,000,000, 10-year, 8% bonds at 96. The journal entry to record the issuance will show a:
A) debit to Cash of $1,000,000. B) credit to Discount on Bonds Payable for $40,000. C) credit to Bonds Payable for $960,000. D) debit to Cash for $960,000.
Companies use environmental management when they implement strategies that attempt to shape the external environment within which they operate.
Answer the following statement true (T) or false (F)
The efficient frontier:
A. represents all possible portfolios for a given level of risk. B. separates unattainable portfolios from less than optimal portfolios. C. is different for every investor. D. More than one of the above