Principle 8 tells us that diversification reduces
A) risk.
B) costs.
C) profitability.
D) earnings.
E) none of the above.
Answer: A
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When writing persuasive messages, one way to avoid faulty logic is to
A) avoid induction. B) avoid deduction. C) avoid praising your opponent. D) avoid hasty generalizations. E) simplify a complex issue to either/or choices.
Under the equity method, the investor ________.
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Indicate whether the statement is true or false
A sales return of $25 including tax of $2 would require a:
a. debit to sales returns and allowances for $25. b. credit to sales returns and allowances for $23. c. credit to sales returns and allowances for $25. d. debit to sales returns and allowances for $23.