The process of analyzing alternative long-term investments and deciding which assets to acquire or sell is known as:
A. Capital budgeting.
B. Master budgeting.
C. Managerial accounting.
D. Variance analysis.
E. Planning and control.
Answer: A
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E-Z Rid disposes of toxic wastes. Elmo worked for E-Z. He contacted clients, negotiated contracts, and oversaw the daily operations at E-Z. The company is so busy its safety procedures are overlooked to get all the work done. Elmo knew safety lapses at E-Z (including improperly burying toxic waste) were common, but he overlooked this because he wanted the company to succeed. Elmo happy until one
day he and Jo Wong, president of the E-Z, had an argument. Elmo quit and began to look for another job. Extracto, a rival of E-Z, needed someone like Elmo. He interviewed and thought he would get the job. But when Extracto got a letter describing Elmo's work, they told him they could not hire him. Jo had written a negative and partly untrue account of his work record. Elmo started his own business and contacted many of E-Z's clients. He told them that E-Z was having safety problems, that they could be financially liable for E-Z's negligence, and that Jo was unstable. Many of E-Z's customers switch to do business with Elmo. When Jo discovered what Elmo had done she was furious. She bought a one-page ad in the local paper which stated that Elmo was a careless businessman whose business was bound to be awful, and who embezzled funds from clients in the past (not true). Elmo then stormed onto E-Z's property and went into Jo's office. After calling her a no-good liar, Elmo slapped her. Jo's ad asserts that Elmo embezzled funds (untrue) and that Elmo is careless (probably true). If Elmo sues Jo over the ad, what would he be suing for? a. severe embarrassment b. invasion of personal property c. trespass d. assault e. libel