Companies can issue different classes of common stock. Which of the following statements concerning stock classes is CORRECT?
A. All common stocks fall into one of three classes: A, B, and C.
B. All common stocks, regardless of class, must have the same voting rights.
C. All firms have several classes of common stock.
D. All common stock, regardless of class, must pay the same dividend.
E. Some class or classes of common stock are entitled to more votes per share than other classes.
Answer: E
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Which of the following is a risk that firms must consider prior to expanding abroad?
A) The domestic consumers may prefer low-priced products. B) The market in the foreign country may be too similar to the domestic market. C) Consumers in the foreign country may be very particular about quality. D) The foreign country may have very low pollution control standards. E) Management may not understand the foreign country's business culture.
Which of the following would not be considered a strength of the situational approach?
A. emphasizes leadership flexibility B. is a very practical approach C. is considered a credible model for training leaders within organizations D. takes the influence of gender into account during leader-follower situations
Regent, Inc. uses the following standard to produce a single unit of its product: overhead $6 (2 hrs. @ $3/hr.). The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000, and 24,000 units produced. The overhead volume variance is:
A. $10,000 favorable. B. $36,000 unfavorable. C. $4,000 unfavorable. D. $16,000 unfavorable. E. $12,000 favorable.
Samuel Tate enters into a contract with Bill Smith. Under the terms of this contract, Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, this is an example of a(n):
a. quasi contract. b. illusory contract. c. executory contract. d. executed contract.