In complete voluntary liquidations, the sum of the firm's parts is worth more than the whole, for all of the following reasons EXCEPT:
a. the assets (or divisions) may be worth more in the hands of more competent managers.
b. liquidated assets always sell at a premium to their fair value.
c. the special tax treatment afforded liquidations provides a source of value over and above the firm's value as a going concern.
d. any diseconomies associated with excessive diversification can be eliminated by piecemeal sale through liquidation.
B
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An auditor concluded that no excessive costs for an idle plant were charged to inventory. This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory, including presentation and disclosure, and:
A. existence. B. rights and obligations. C. valuation and allocation. D. completeness.
A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________
A) retailer cooperative B) franchise organization C) area-based cartel D) sponsored voluntary chain E) alternate selling channel
Which of the following is another name for the thesis statement of an informative speech?
a. Proposition b. Primary argument c. Central idea d. Call to action
The cash flows associated with common stock are more difficult to estimate than those related to bonds because stock has a residual claim against the company versus a contractual obligation for a bond.
Answer the following statement true (T) or false (F)