The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption?
A. complexity
B. trialability
C. observability
D. relative advantage
E. sampling
Answer: B
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U.S. News & World Report is an example of a reference material
Indicate whether this statement is true or false.
In general, when prices are rising, use of the FIFO method will result in a lower tax liability than the other methods
Indicate whether the statement is true or false
Which of the following statements is true about the flotation costs that are incurred when a firm issues new securities to raise funds?
A. The higher the flotation costs associated with a preferred stock issue, the lower the firm's cost of preferred stock, rps. B. Flotation costs should be added to the per share price of a preferred stock issue to compute the cost of preferred stock, rps. C. Floatation costs should be added to the before-tax weighted average cost of capital to determine the firm's overall net weighted average cost of capital after taxes. D. When it incurs flotation costs, the firm normally receives a higher amount of net proceeds from a security issue than when there are no flotation costs. E. Floatation costs increase the cost of using funds; e.g., the cost of issuing new common stock is greater than the cost of retained earnings because the firm must pay flotation costs to issue new equity.
Answer the following statement(s) true (T) or false (F)
In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because his or her leadership is not diffused through layers of management.