Venture capitalists can make their money by ________.
A. selling their percentage share of the business to another investor
B. waiting until the company "goes public" and converting their shares into stock, which can then be traded on the stock market
C. Either of these.
D. Neither of these.
Answer: C
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If a company erroneously records a $500 deposit as $400 in its books, which of the following must occur when reconciling the bank statement?
a. The company will have to increase the balance per the bank statement by $100. b. The company will have to increase the balance per the books by $100. c. The company will have to decrease the balance per bank statement by $100. d. None of the above
The ability to carry your retirement benefits from one plan to another when changing employers is called:
a. portability b. vesting c. defined benefit d. defined contribution e. carrying
Opie enters into a contract with Belle. Later, Opie is adjudged mentally incompetent. Raye, Opie's daughter, attempts to void Opie's contract with Belle on the ground of Opie's incompetency. The contract is
A. enforceable if Opie had capacity at the time the contract was formed. B. enforceable if Belle is also incompetent. C. enforceable if Raye knew of the contract when it was formed. D. void.
J.B. Enterprises purchased a new molding machine for $85,000. The company paid $8,000 for
shipping and another $7,000 to get the machine integrated with the company's existing assets. J.B. must maintain a supply of special lubricating oil just in case the machine breaks down. The company purchased a supply of oil for $4,000. The machine is to be depreciated on a straight-line basis over its expected useful life of 8 years. Which of the following statements concerning the change in working capital is MOST accurate? A) The $4,000 may be expensed each year over the life of the project as part of the incremental free cash flows. B) The $4,000 is added to the initial outlay and recaptured during the terminal year, hence having no impact on the projects NPV or IRR. C) Even if the $4,000 is fully recovered at the end of the project, the project's NPV and IRR will be lower if the change in working capital is included in the analysis. D) The $4,000 paid for oil is added to the initial outlay, offset by the tax savings $1600.