John and Lena sign a contract with the owner of Little Fairy, a well-known preschool chain, to start a preschool in their city. They take permission from the owner to use the name and products of Little Fairy. They also furnish their preschool in Little Fairy's trademark style. In this scenario, John and Lena are starting a _____.
A. corporation
B. sole proprietorship company
C. limited liability company
D. franchise
Answer: D
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The U.S. GAAP requires firms using LIFO to disclose in notes to the financial statements
a. the amounts by which inventories based on FIFO or current cost exceed their amounts as reported on a LIFO basis. b. the amounts by which inventories based on LIFO exceed their amounts as reported on a FIFO or current cost basis. c. the amounts by which inventories based on LIFO exceed their amounts as reported on a specific identification or current cost basis. d. the amounts by which inventories based on specific identification or current cost exceed their amounts as reported on a LIFO basis. e. none of the above
Liquidity ratios indicate a company's
A) ability to pay short-term debts. B) ability to generate a financial return on sales. C) relative amounts of funds supplied by creditors. D) ability to meet its long-term financial obligations. E) profitability and leverage ratios.
The BP oil spill in the Gulf of Mexico led to the largest accidental oil spill in history
a. True b. False Indicate whether the statement is true or false
Perez invented a new type of cellular phone and gave it a unique name. She claims she has the exclusive right to use the name throughout the United States. Is she correct?