The options for allocating a diversified company's financial resources include all of the following except
A. paying off existing debt and building cash reserves.
B. decreasing dividend payments and/or selling shares of stock.
C. funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses.
D. investing in ways to strengthen or grow existing businesses.
E. making acquisitions to establish positions in new businesses or to complement existing businesses.
Answer: B
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A corporation cannot reasonably accumulate earnings to
A. protect against pending litigation. B. self-insure. C. redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death. D. fund an employee retirement plan.
Stage Technologies is a London-based company that supplies engineering solutions for the entertainment industry. It has helped the boy-band Westlife make a flying entrance onto stage and provided stage-rigging packages for Princess Cruise vessels. The company was established in 1994 after a couple of production designers decided that the automation of theater productions could be done more safely and more efficiently by using modular production rather than the old "build-as-needed" formula. The company installs wenches, stage lifts, and other equipment commonly used in stage productions. The equipment is designed so it can be operated from a single console without awkward or heavy lifting. Both opera companies and theaters see the benefit of such a system, but many are reluctant to buy
because of perceived costs. John Hastie and Mark Ager, the company's best salespeople, must design sales presentations that address these concerns.What kind of a close would Ager be using if during the presentation, he asked, "Would you want the control module in the orchestra pit or behind the curtains?" A. Assumptive B. Standing-room-only C. Minor-points D. Balance-sheet E. Technology
Uncle Brandon promises to give his motorcycle to you for free at the end of the month. This transaction is governed by UCC, Article 2, because a motorcycle is within the definition of "goods."
a. True b. False Indicate whether the statement is true or false
The mission, strategic plans, communication, structure, and decision making, among other items, should be included in the alliance memorandum of understanding
a. True b. False