Unless a contract provides otherwise, it is assumed to be a shipment contract

Indicate whether the statement is true or false


True

Business

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Which of the following is a disadvantage of using the historical cost-plus approach to arrive at a selling price?

A) It does not include the shipping and ancillary charges as part of a product's cost. B) It ignores demand and competitive conditions in the target markets. C) It fails to address the indirect manufacturing costs that a company is likely to incur. D) It cannot be used by companies that are new to exporting products.

Business

The marginal cost of capital (MCC) schedule generally rises, which implies that the weighted average cost of capital:

A. increases as the firm achieves economies of scale in its financing arrangements. B. decreases as the firm uses more retrained earnings to finance capital budgeting projects. C. decreases as the firm uses a greater proportion of cheaper debt and a lower proportion of more expensive common stock. D. increases as the firm pays more taxes on higher levels of taxable income. E. generally increases because the firm incurs higher flotation costs and higher financial risk as it raises more funds through new debt and new equity issues.

Business

Ashley purchased a stock at a price of $27 a share. She received quarterly dividends of $0.75 per share. After one year, Ashley sold the stock at a price of $29.25 a share. What is her percentage holding period return on this investment?

A) 10.3% B) 11.1% C) 17.9% D) 19.4%

Business

The current term for nations with low economic development and low average incomes is "developing countries."

Indicate whether the statement is true or false.

Business