A name that encompasses all of the major risks faced by a business firm is
A) financial risk.
B) speculative risk.
C) enterprise risk.
D) pure risk.
Answer: C
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Which of the following terms does not describe an interest rate used to calculate the interest expense on the income statement?
a. Nominal rate b. Market rate c. Effective rate d. Yield rate
Which of the following is not a discounted cash flow model for valuation?
a. Free cash flow b. Dividend discount model c. Discounted cash flow d. Discounted abnormal earnings e. All of the answers are discounted cash flow models.
If the new venture is not a manufacturing operation, but a retail store or service, a new section of the business plan is required, which is called the:
A. operational plan. B. production plan. C. executive summary. D. organizational plan.
In order to establish concurrent validity of selection tests, BluTech has employees take an aptitude test the week after their performance appraisal is completed by their supervisors. The test scores are then compared to the ratings.
Answer the following statement true (T) or false (F)