The aggressive funding strategy is a strategy by which a firm finances its current assets with short-term funds and its fixed assets with long-term funds
Indicate whether the statement is true or false
FALSE
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An individual differences construct that affects a leader’s or leader-to-be’s decisions to assume leadership training, roles, and responsibilities and that affect his or her intensity of effort at leading and persistence as a leader is called ______.
A. Pygmalion effect B. Galatea effect C. motivation to lead D. Golem effect
The owners of Puff Ball bakery want to open a second retail outlet. Which of the following scenarios is most likely to yield a competitive advantage?
A. Open a shop on an inexpensive piece of land near a new mixed-use residential and business district currently under construction. B. Open a shop in a crowded downtown location where several other bakeries have been successful over the years. C. Purchase an existing bakery from a business that closed due to declining sales and try to revive it. D. Build a shop in a sparsely populated rural area where the land is inexpensive and few other bakeries exist.
Rawhide Outfitters had projected its sales for the first six months of 2012 to be as follows:
Jan. $50,000 April $180,000 Feb. $60,000 May $240,000 Mar. $100,000 June $240,000 Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are $40,000/month. The company's cash balance as of March 1st, 2012 is projected to be $40,000, and the company wants to maintain a minimum cash balance of $15,000. Excess cash will be used to retire short-term borrowing (if any exists). The firm has no short-term borrowing as of March 1st, 2012. Assume that the interest rate on short-term borrowing is 1% per month. What was Rawhides' projected loss for March? A) $184,000 B) $84,000 C) $110,000 D) none of the above
A bookkeeper has debited an asset account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction?
A. Credit another liability account for $1,500. B. Debit another asset account for $1,500. C. Credit a revenue account for $1,500. D. Credit another asset account for $1,500. E. Credit the owner's capital account for $1,500.