A small stock dividend normally results in a transfer from Retained Earnings to Contributed Capital of an amount equal to the market value of the stock
Indicate whether the statement is true or false
True
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The _____ of a specific raw material is the optimal quantity that allows a business to minimize overstocking and save cost, without risking understocking and missing production deadlines.
A. targeted market list (TML) B. bill of materials (BOM) C. economic order quantity (EOQ) D. convenient order quantity (COQ)
Whereas a job description identifies the requirements of a certain position, the job specification identifies the duties and responsibilities of the job
Indicate whether the statement is true or false.
Alain is chairman of the board of Barber & Beauty Supply Corporation. Consuela, a con¬sumer, is injured while using a Barber & Beauty product. She sues Barber & Beauty and Alain individu¬ally. The corporation may pay Alain's legal fees under
a. under the director's right to participation. b. under the director's right to compensation. c. under the director's right to indemnification. d. only on the firm's own initiative.
Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers?
A. Pay managers large cash salaries and give them no stock options. B. Change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. C. Beef up the restrictive covenants in the firm's debt agreements. D. Eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. E. For a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold.