Candace hopes to get a job with the U.S. Foreign Service, serving as a liaison between an overseas embassy and the local population. She has an uncanny ability with languages, but if she wants to function well in her dream job, she also needs to be

A. creative, fearless, and original.
B. easy to train and a good rule-follower.
C. flamboyant, articulate, and irrepressible.
D. reliable, detail-oriented, and unchanging.
E. open-minded, flexible, and a good listener.


Answer: E

Business

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French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a

A. elastic product. B. custom product. C. inelastic product. D. product in demand. E. prestige product.

Business

In a period of rising inventory prices, use of the FIFO cost flow method would cause a company to pay more income taxes than would use of LIFO.

Answer the following statement true (T) or false (F)

Business

A firm has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of the preferred stock is ________

A) 7.2 percent B) 12 percent C) 12.4 percent D) 15 percent

Business

Your company is considering an investment in one of two mutually exclusive projects. Project 1

involves a labor intensive production process. Initial outlay for Project 1 is $1,495 with expected after-tax cash flows of $500 per year in years 1-5. Project 2 involves a capital intensive process, requiring an initial outlay of $6,704. After-tax cash flows for Project 2 are expected to be $2,000 per year for years 1-5. Your firm's discount rate is 10%. If your company is not subject to capital rationing, which project(s) should you take on? A) Project 2 B) Project 1 C) Projects 1 and 2 D) Neither project is acceptable.

Business