Because information is scarce,
A) equity contracts are used much more frequently to raise capital than are debt contracts.
B) monitoring managers gives rise to costly state verification.
C) government regulations, such as standard accounting principles, can help reduce moral hazard.
D) all of the above are true.
E) only B and C of the above are true.
E
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Salespeople's reports summarizing each sales call are a source of internal data.
Answer the following statement true (T) or false (F)
Tucker Corp Tucker Corp has the following product information: Sales price $12 per unit Contribution margin ratio 40% Fixed costs $45,000 Refer to the Tucker Corp information above. What is the break-even point in units?
A) 1,500 units. B) 112,500 units. C) 216,000 units. D) 9,375 units.
What should be shown to prove fraud?
What will be an ideal response?
Which of the following is an exception to the privity rule?
A) rights of a plaintiff to sue an employer when their employee causes damages B) rights of a plaintiff to sue a parent for damages their child caused C) rights of a beneficiary of a life insurance policy to sue an insurance company if they are not paid D) rights of a lender to sue a wife for the debts of her husband E) all of the above illustrate the privity rule