The capital asset pricing model uses three variables to evaluate required returns on common
equity: the risk-free rate, the beta coefficient, and the market risk premium.
Indicate whether the statement is true or false
TRUE
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Fraudulent financial reporting at Enron resulted in
A) thousands of people losing their jobs. B) thousands of people losing their pensions and investment incomes. C) prison sentences and fines for corporate executives. D) all of these choices.
MNC diversification into new territories is more likely to occur when:
a. Firms possess high endowments of intangible resources such as knowledge b. Firms are in information-intensive industries seeking intangible resources such as knowledge c. Firms’ top management teams have an elite education, low average age and great international experience d. All the above
Group technology requires that:
A) each component be identified by a coding scheme that specifies size, shape, and the type of processing. B) a specific series of engineering drawings be prepared. C) all bills of material be prepared using the same format. D) engineering change notices be linked to each of the bills of material and engineering notices. E) the final products be standardized.
What forms can deceptive advertising claims take?