Which of the following is an advantage of direct investment?
A) Direct investment involves fewer risks than joint ownership.
B) Direct investment ensures that a firm is shielded from market changes.
C) Direct investment allows a firm to keep full control over the investment.
D) Direct investment involves minimal financial or time expenditures.
E) Direct investment protects the firm from currency devaluation.
C
You might also like to view...
Which of the following types of change is initiated in times of crisis?
A) Crisis change B) Organic change C) Systematic change D) Dramatic change
Sweet Company's outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paidyear 1$2,000year 2$6,000year 3$32,000The total amount of dividends paid to preferred and common shareholders over the three-year period is:
A. $11,000 preferred; $29,000 common. B. $15,000 preferred; $25,000 common. C. $10,000 preferred; $30,000 common. D. $12,000 preferred; $28,000 common. E. $5,000 preferred; $35,000 common.
Marketers with luxury brands use brand extension cautiously in order to avoid
A. diluting the core brand. B. product line extension limitations. C. private-label branding disputes. D. exclusive co-branding arrangements. E. brand licensing fees.
On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:
A.
| Accounts payable | 5,800 | |
| Merchandise inventory | 116 | |
| Cash | 5,684 |
B.
| Accounts payable | 5,800 | |
| Purchases discounts | 116 | |
| Cash | 5,684 |
C.
| Purchases | 5,684 | |
| Cash | 5,684 |
D.
| Cash | 5,684 | |
| Purchases discounts | 116 | |
| Accounts payable | 5,800 |
E.
| Cash | 5,684 | |
| Accounts receivable | 5,684 |