The disadvantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.
Answer: B
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An expatriate is an employee ________.
A. working for a multinational company in his home country B. who has been headhunted from a firm to join another company C. who participates in succession planning D. who works in a country other than his or her country of origin
An unauthorized signature will not bind the person whose name is signed even if his or her negligence substantially contributed to the forgery.
Answer the following statement true (T) or false (F)
An analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:
A. the organizational culture of Southwest Airlines is the key to its success. B. understanding the profitability in an industry indicates to companies where above-average returns can be earned. C. it is harder for rivals to match a configuration of integrated activities than to imitate a single activity. D. the primary and support activities of a successful company capture value all along the value chain.
Seedly Corporation's most recent balance sheet reports total assets of $35,000,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with a maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company's debt-to-equity ratio?
A. Issuing the bonds would cause the firm's debt-to-equity ratio to improve from .5 to .8. B. Issuing the bonds would cause the firm's debt-to-equity ratio to worsen from 1.0 to 1.3. C. Issuing the bonds would cause the firm's debt-to-equity ratio to remain unchanged. D. Issuing the bonds would cause the firm's debt-to-equity ratio to improve from 1.0 to 1.3. E. Issuing the bonds would cause the firm's debt-to-equity ratio to worsen from .5 to .8.