The free market theory provides the rationale for the responsibility of managers to make as much money for their stockholders as possible.
Answer the following statement true (T) or false (F)
True
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Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?
a. The payment of dividends is at the discretion of the board of directors. b. The payment of interest on bonds payable is required by law. c. Interest accrues, whereas dividends do not accrue. d. The declaration of dividends reduces the amount of income taxes the corporation must pay.
Why is markup pricing most likely impractical?
A) Calculating costs is complicated due to fluctuations. B) By tying the price to cost, sellers oversimplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) The method ignores demand and competitor prices. E) With a standard markup, consumers know when they are being overcharged.
Which statement is FALSE about soliciting customer feedback (including complaints)?
a. Most customers who have a complaint will not share it with the company. b. Most complaints will be shared with family and friends. c. Customer feedback can be sought via surveys or email/telephone contact. d. Most customers who have a complaint will share it with the company. e. It is important to provide customers with an opportunity to provide feedback.
Forest Company had $170,000 in sales on account last year. The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $12,000. The company's accounts receivable turnover was closest to:
A) 13.08 times B) 12.14 times C) 14.17 times D) 6.54 times