Merchandise Inventory normally has a debit balance
Indicate whether the statement is true or false
True
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If the delivery of goods or services used as inputs is uncertain, ______.
A. the company should abandon production of that product for which these goods or services will be used as inputs B. it may encourage suppliers to find more trustworthy vendors C. it is guaranteed to increase production costs D. it makes project completion impossible
Assume that Plavor Brands, Inc has 10,000,000 common shares outstanding that have a par value
of $2 per share. The stock is currently trading for $30 per share. The firm reported a net profit after-tax of $25,000,000. All else equal, what will happen to earnings per share if the company issues a 10% stock dividend? A) Earnings per share will increase because the dividend increases the value of the company. B) Earnings per share will remain the same since a stock dividend does not create an expense. C) Earnings per share will decrease because the number of shares outstanding will go up. D) The impact cannot be determined without additional information on the new price per share.
The failure to redesign a product with a safety flaw is a product liability issue
Indicate whether the statement is true or false
Which of the following describes the duty of loyalty?
A) It requires managers to make decisions they reasonably believe to be in the best interest of the corporation. B) It prohibits managers from making a decision that benefits them at the expense of the corporation. C) It requires consideration of the interests of the surrounding community. D) It requires using care that an ordinarily prudent person would take in a similar situation.