If an individual investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock market, the transaction is referred to as a primary market transaction.
Answer the following statement true (T) or false (F)
False
Primary markets are markets in which various organizations raise funds by issuing new securities, whereas secondary markets are markets where investors trade securities that have previously been issued (i.e., they are outstanding securities). See 3-2: Types of Financial Markets
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If a corporation appropriates retained earnings for treasury stock transactions, the appropriation will affect total amounts for retained earnings and stockholders' equity as Total Total Retained Earnings Stockholders' Equity I. decrease decrease II. decrease no effect III. no effect no effect IV. no effect decrease ?
A) I B) II C) III D) IV
Voyage Boat Company manufactures 100 luxury yachts per month. A compact media center is included in each yacht. Voyage Boat manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $42,000 per month. Aaron Dalton, the CEO, wishes to increase operating income by $3000. He has an offer from a foreign producer to provide the media centers at a contract cost of $350 per unit. The required savings in fixed costs in order to achieve his objective would be ________.
A) $3000 B) $7000 C) $10,000 D) $28,000
Identify the sentence that contains specific, concrete language
A) The committee met several times to discuss the proposal. B) Many employees are dissatisfied with the change in retirement benefits. C) A substantial number of complaints were received from customers. D) Three new representatives will complete their training this week. E) The speaker used an emotional tone when addressing the sales meeting.
In measuring cash flows, we are interested only in the incremental or incremental after-tax cash
flows that are attributed to the investment proposal being evaluated. Indicate whether the statement is true or false