Which of the following statements about option contracts is correct?
A) Option contracts can create a legal right to buy a commodity.
B) Option contracts can create a legal right to sell a financial asset.
C) The option holder has the right to exercise the option.
D) All of the above are correct.
D
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The assumption made by social exchange theory that people want to make the most benefits while minimizing costs is known as the ______.
A. minimax principle B. dispositional factor C. covariation model D. comparison level
Jack holds an ownership interest of 63% and Teresa holds an ownership interest of 37% in the J and T Partnership. This year, in order to further develop the business, Jack contributes an additional $6800 and Teresa contributes an additional $3200 to the partnership. Which of the following is TRUE of this scenario?
A) Either the total contribution of $10,000 or the contribution in relationship to the ownership interest ratio will be recorded. B) Only the total contribution of $10,000 will be recorded. C) Individual contributions of $6800 by Jack and $3200 by Teresa will be recorded. D) 63% of Jack's contribution and 37% of Teresa's contribution will be recorded.
Assume that the reduced cost of a decision variable is -$20 for a maximization problem. This implies that:
A) the objective function value will decrease by $20 if we do not produce any units of this product B) the objective function value will not change if we produce an additional unit of this product C) the objective function value will increase by $20 if we produce an additional unit of this product D) the shadow price value will decrease by $20 if we produce an additional unit of this product E) the objective function value will decrease by $20 if we produce an additional unit of this product
The stock of Wheel Corporation, a U.S. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. Wheel owns 90 percent of the outstanding stock of Axle, Inc, also a U.S. company. Axle owns 100% of the outstanding stock of Tire Corporation, a German company. Wheel and Tire each own 50 percent of the outstanding stock of Bumper, Inc., a U.S. company. Wheel and Axle each own 50 percent of the outstanding stock of Trunk Corporation, a U.S. company. Which of these corporations form an affiliated group eligible to file a consolidated tax return?
A. Wheel, Axle, Tire, Bumper, and Trunk are an affiliated group. B. Wheel, Axle, and Trunk are an affiliated group. C. Wheel, Axle, and Tire are an affiliated group. D. Wheel and Axle are an affiliated group.