Benefits derived from horizontal and hierarchical relationships are mutually exclusive.
Answer the following statement true (T) or false (F)
False
Benefits derived from horizontal (related diversification) and hierarchical (unrelated diversification) relationships are not mutually exclusive. Many firms that diversify into related areas benefit from information technology expertise in the corporate office. Similarly, unrelated diversifiers often benefit from the best practices of sister businesses even though their products, markets, and technologies may differ dramatically.
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A liability for dividends is created
a. at the end of each fiscal year. b. at the date of payment. c. at the date of record. d. at the date of declaration.
Participative budgeting:
a. Results in managers being less apt to meet or beat their budget projections. b. Motivates managers to meet budget numbers because they set them. c. Describes the budget meetings in which managers participate. d. Leaves room to blame top management in the event budget numbers are not met.
A(n) ________ is a formal statement of a company's values concerning ethics and social issues.
A. law of fairness B. code of ethics C. social covenant D. tying agreement E. ethics ombudsperson
While auditing the financial statements of Forble Corp. (which are to be included in a Securities Act registration statement), Ernie, a certified public accountant, fails to review any of Forble's journal entries, does not read the details of meetings of the board of directors, and does not even speak with the comptroller of Forble. Consequently, Ernie does not discover that substantial loans, which went unmentioned in the financial statements, had been made to Forble officers. As a result, the registration statement omits any mention of the loans. Assuming the omitted fact is a material one and that Ernie is not an officer or director of Forble, does Ernie face potential liability under Section 11 of the Securities Act of 1933? Discuss the reasons for your answer.
What will be an ideal response?