The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. U.S. GAAP does not specify a minimum probability level,
although the rule-of-thumb in practice is approximately _____ percent.
a. 50
b. 60
c. 70
d. 80
e. 90
D
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______ assumes we take into account every single criterion or possible alternative to make a decision.
A. Complete rationality B. Essential rationality C. Instrumental rationality D. Bounded rationality
Products that displace an established technology and shake up the industry or create a completely new industry are examples of ________ technology.
Fill in the blank(s) with the appropriate word(s).
Section 16(a) of the 1934 Act requires that officers, directors, and greater-than-10 percent shareholders of companies that have registered any class of equity securities under the 1934 Act file __________ reports with the SEC and with an national securities exchange on which their company's equity securities are listed
a. actual ownership b. beneficial ownership c. insider ownership d. listed stock
Personal Wellness ? Jackie has been working for a local small business called Personal Wellness for the last three years. It is a retail business that sells sporting goods equipment. When she started to work there, she noticed several things that were possibly the cause of the business not doing as well as it hoped. Jackie has been thinking of starting her own small business because she feels she has learned much through working for Personal Wellness. ? Jackie's manager asked her to create a business plan for Personal Wellness. The manager hoped that this plan would put things into perspective to help the company do better. After creating the plan, Jackie suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company.
Jackie wants to make sure that her leaving does not become the cause of the company going under. Refer to Personal Wellness. A business plan should answer all of the following questions except A. "Which accounting firm will audit the company?" B. "What exactly is the nature and mission of the new venture?" C. "Why is this new enterprise a good idea?" D. "How much will the new venture cost?" E. "What are the entrepreneur's goals?"