Discuss the relationship between stock prices and investors' beliefs about the business cycle

What will be an ideal response?


Answer: Stock prices tend to anticipate the economic conditions that investors expect in the future. When they believe that economic conditions will deteriorate and profits will decline, stock prices fall. When they expect an improving economy and higher corporate profits, stock prices rise.

Business

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Carrying value is computed annually when a bond is issued for other than its face value. For a bond issued at a premium, how will this component change as the bond approaches maturity?

a. decrease b. increase c. remain constant d. not enough information given to decide

Business

Indirect costs incurred are charged directly to the Work in Process Inventory account

Indicate whether the statement is true or false

Business

In the marketing mix, design, packaging, services, and variety can be categorized under ________

A) product B) price C) promotion D) place E) position

Business

Positioning customer relationship management (CRM) as a comprehensive business model provides the impetus for top management to properly support it over the long run.

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

Business