One weakness of payback period approach is its failure to recognize cash flows that occur after the payback period

Indicate whether the statement is true or false


TRUE

Business

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A job order costing system would be most appropriate for which type of business?

a. oil refiner b. paper producer c. food processor d. custom furniture manufacturer

Business

Which one of the following statements is TRUE?

A. An agency problem occurs when an owner/manager sells stock to an outsider but continues to consume perquisites. B. Firms borrowing money have greater flexibility to use that money when there are debt covenants. C. When lenders protect themselves from the risk of asset switching by raising the interest rate, the firm's WACC can decrease. D. A lender calling in a corporate loan and then lending the funds out to a safer borrower is an example of asset switching.  E. A  supplier substituting a lower-quality raw material without approval is an example of asset switching.

Business

The triple bottom line includes all of the following except:

A) people B) profit C) purpose D) planet E) none of these

Business

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent?

A. personal selling B. mobile marketing C. public relations D. sales promotions E. advertising

Business