Answer the following statement(s) true (T) or false (F)
1. Commercial paper is a short-term note that carries more risk than T-bills, is not as liquid, but pays the purchaser a higher rate of interest.
2. Equity capital is funds that are obtained through borrowing and must be repaid.
3. Trade credit is credit given to a firm by the suppliers of the company.
4. If a buyer takes advantage of a “2/10 net 30” trade credit offer it will save 10 percent of the bill if paid within 2–10 days, but will pay the entire invoice total if not paid within that time frame.
5. Most banks do not require collateral for short-term loans to new businesses.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. Residual value is expected to be zero. If the truck is driven 27,000 miles during the first year, how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $98,600 B) $24,480 C) $73,440 D) $44,440
For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is
A. elastic. B. inelastic. C. stable. D. marginal. E. unstable.
Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods.
Answer the following statement true (T) or false (F)
Which of the following is not an example of bad faith bargaining?
A. Bilateral bargaining B. Surface bargaining C. Unilateral change D. Direct dealing