The other members agree with Brandon's logic and vote to sell BoxCorps and buy Excelsior. All of the following, EXCEPT which one, could be a potential result?
A) Excelsior fails as a business, and the club loses all of the money it invested in it.
B) Excelsior is bought out by a bigger medical firm, and the club winds up owning stock in that company.
C) Excelsior's drugs turn out to be big successes, and the club members become rich.
D) Brandon and the club members are indicted for insider trading.
E) BoxCorps stock turns out to be undervalued, and the club loses the chance to profit when its price advances.
Answer: D
Explanation: D) Brandon is an amateur using publicly available financial information. If he had access to private insider information about either company, he could theoretically be accused of insider trading, but this is not the case. So Choice D is correct. Each of the other results, given the speculative nature of the trade, is quite possible as an outcome.
You might also like to view...
Why should salespeople welcome sales objections?
What will be an ideal response?
Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statementsĀ orĀ the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAOn January 1, Year 1, the Baker Company purchased an asset for $200,000. The asset had a $50,000 salvage value and a 10-year life. Baker uses the straight-line method. At the beginning of Year 3, the asset was sold for $174,000. Show how the sale will affect Baker's financial statements, assuming that Baker uses straight-line
depreciation.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows??????? What will be an ideal response?
Because employers are raising employee pay at various times during the year, survey data must be updated using a process called
A. gaining. B. leading. C. matching. D. aging.
This chapter discussed both materials planning and capacity planning. Consider those concepts in answering the following questions:
a. Which is more appropriate for a conventional service organization? Why? b. Which is more appropriate for a conventional manufacturing organization? Why? c. What are the three hierarchical components of materials planning? Provide a brief description of each. d. What are the three hierarchical components of capacity planning? Provide a brief description of each.