The goal of all international corporations is to maximize shareholder wealth
Indicate whether the statement is true or false.
Answer: FALSE
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________ is the extent to which differences in observed scale scores reflect true differences among objects on the characteristic being measured, rather than systematic or random errors
A) Reliability B) Validity C) Effectiveness D) Consistency E) Substantive difference
Which of the following is an important stated component of Michael Brown, Linda Trevino, and David Harrison’s definition of ethical leadership?
a. a strict separation of private and professional behavior b. the use of an established code of ethics c. a demonstrated disinterest in pursuit of profits as a highly valued goal d. use of two-way communication with employees
Most modest estates are exempt from any estate or death tax but once an estate qualifies for taxation the rate is high (i.e., 45% or above)
Indicate whether the statement is true or false
Allied, Inc. is considering Project A and Project B, which are two mutually exclusive projects with unequal lives
Project A is an eight-year project that has an initial outlay or cost of $180,000. Its future cash inflows for years 1 through 8 are $38,000. Project B is a six-year project that has an initial outlay or cost of $160,000. Its future cash inflows for years 1 through 6 are the same at $36,000. Allied uses the equivalent annual annuity (EAA) method and has a discount rate of 11.50%. Will Allied accept the project? A) Allied accepts Project B because it has a more positive EAA. B) Allied rejects both projects because both have a negative NPV (and thus negative EAA). C) Allied accepts Project A because its EAA is about $2,396 and Project B's EAA is only about $1,097. D) Allied accepts Project A because its NPV (and thus EAA) is positive and Project B's NPV (and thus EAA) is negative.