Which of the following is an environmental difference between governments and for-profit business enterprises?
A. Fiduciary responsibilities
B. Both Donor restricted assets and Fiduciary responsibilities
C. Relationship with stakeholders
D. Donor restricted assets
Answer: C
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What is a global network of organizations and activities that supply a firm with goods and services?
A) supply tree B) provider network C) supply chain D) vendor network E) vendor tree
According to Jay Conger, which of the following is a guideline on how managers can empower employees in an organization?
A. Managers should set low performance expectations. B. Managers should exclude employees from decision-making processes. C. Managers should reinstate bureaucratic constraints in the organization. D. Managers should encourage employees to take responsibility for goals.
Which of the following statements is CORRECT?
A. If a company has a 2-for-1 stock split, its stock price should roughly double. B. Capital gains earned on shares repurchased are taxed less favorably than dividends, which is why companies typically pay dividends and avoid share repurchases. C. Very often, a company's stock price will rise when it announces that it plans to commence a share repurchase program. Such an announcement could lead to a stock price decline, but this does not normally happen. D. Stock repurchases increase the number of outstanding shares. E. The clientele effect is the best explanation for why companies tend to vary their dividend payments from quarter to quarter.
Due to changes in regulatory requirements, the transactions costs associated with selling corporate
securities increased by $1 per share. This change will A) cause the cost of capital to increase. B) cause the cost of capital to decrease. C) have no effect on the cost of capital because transactions costs are expensed immediately. D) cause the cost of capital to decrease only if investors may be billed for part of the increase in transactions costs.