Which one of the following statements is TRUE?
A. Lenders will protect themselves from asset switching by charging a higher interest rate.
B. Creditors have a claim on a firm's earning stream through the dividend payments they receive.
C. An example of asset switching is an option to exchange one piece of real estate for another.
D. Lenders can't legally prevent a firm from engaging in asset switching.
E. Firms borrowing money have greater flexibility to use that money when there are debt covenants.
Answer: A
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Which of the following is an advantage of sales-wave research?
A) It gives surprisingly accurate results on advertising effectiveness. B) It allows the brand to gain favorable shelf position. C) It guarantees immediate brand recognition and high sales volume. D) It can be implemented quickly with a fair amount of security. E) It easily creates a buzz in the minds of customers.
On November 1, 2017, Kelemen Jewelers accepted a 3-month, 15% note for $6,000 in settlement of an overdue account receivable. The accounting period ends in December. Give the journal entry to record the accrued interest at the year end
What will be an ideal response
In assessing external technological trends, benchmarking and scanning are similar in that both are concerned with
A) what is being done currently. B) what can be done and is being developed. C) key technologies. D) pacing technologies. E) obtaining competitor's secrets.
The ____ mandates clear disclosure of relevant credit information in consumer credit transactions. It requires conspicuous disclosure of finance charges and interest rates calculated in a uniform manner
A) Equal Credit Opportunity Act B) Fair Credit Billing Act C) Truth-in-Lending Act D) FTC Act