L & M loaned Joan $400 so that she could buy her textbooks for the current semester. L & M's terms for repayment of the loan (including interest) are $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal maximum rate of interest on this type of loan is 6 percent per annum. L & M's loan is usurious.
Answer the following statement true (T) or false (F)
True
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A fully integrated vertical marketing system is unlikely to include an independent retailer
Indicate whether the statement is true or false
Which of the following represents the best business writing?
A) This e-mail message is to inform you that the CEO will be visiting our branch tomorrow. B) The CEO will be visiting our branch tomorrow. C) You should be aware that the CEO will be visiting our branch tomorrow. D) The CEO will be visiting our branch tomorrow for a period of three hours.
Firms are becoming increasingly global by doing all of the following except?
a. Building foreign facilities b. Supporting increased tariffs on trade c. Creating global distribution networks d. Partnering with foreign companies
Which of the following statements concerning risk management is NOT CORRECT?
A. Risk management can reduce the volatility of cash flows, and this decreases the probability of bankruptcy. B. Risk management makes sense for firms directly engaged in activities that involve commodities whose values can be hedged, but it doesn't make much sense for most other firms. C. Companies with volatile earnings pay more taxes than companies with more stable earnings due to the treatment of tax credits and the rules governing corporate loss carry-forwards and carry-backs. Therefore, our tax system encourages risk management to stabilize earnings. D. Risk management can reduce the likelihood of low cash flows, and therefore reduce the probability of financial distress. E. Risk management involves identifying events that could have adverse financial consequences and then taking actions to prevent and/or to minimize the damage caused by these events.