Which of the following are agency costs?
I. Forgoing an investment opportunity which would add to the market value of the owner's equity
II. Paying a dividend to each of the existing shareholders
III. Purchasing new equipment which increases the value of each share of stock
IV. Hiring outside auditors to verify the accuracy of the company financial statements
A) I and III only
B) I and IV only
C) II and III only
D) II and IV only
E) I, II, and IV only
B
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Regional Airline (RA) spends millions of dollars each year on jet fuel. The company also has significant liability exposures. RA can retain a large portion of its liability exposure if fuel costs are low
The company can pay high fuel costs if retained liability losses are low. RA cannot, however, absorb both high fuel costs and high retained liability claims. RA's insurer designed an insurance program where the insurer pays only if both contingencies (high fuel costs and high retained liability claims) occur. The contract the insurer designed is called a(n) A) double indemnity rider. B) double trigger option. C) multiple protection policy. D) other insurance provision.
Which of the following refers to a correlation between two variables?
a.Bicorrelate b.Bivariate c.Two-way variance d.Two-way analysis
Nikki is a single taxpayer who owns a vacation cottage on the lake. During the year, she rented it for $2,000 for 14 days, lived in it for 56 days, and left it vacant the remainder of the year. The year's expenses amounted to $5,000 interest expense, $800 property taxes, $1,500 utilities and maintenance, and $2,400 depreciation. Using the IRS method of allocating expenses, how much of the property-related expenses will be deductible for AGI?
A. $2,000 B. $9,700 C. $1,940 D. $0
Minerals, water, and wind are examples of which factor of production?
A) intangible resources B) natural resources C) human resources D) capital resources E) technological resources