Do you think the euro will survive?
What will be an ideal response?
The survival of the euro will depend on the political will of the strong countries to bail out the weaker countries. It is difficult to image that a weak country will abandon the euro and reissue its own money. This would surely be quite inflationary and could not be done without also adopting severe capital controls. A more likely scenario is that strong countries decide that they can no longer afford to bailout the weaker countries, which causes a crisis of confidence in the European banking system and a call for the reissuance of the Deutsche mark. Things would have to get very bad before the political process would lead to the breakdown of the euro.
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Which of the following events (transactions) is an internal event for a business entity?
a. An accountant provides services for clients. b. An accountant purchases computer equipment to maintain business records and prepare legal documents. c. Periodically, part of the cost of the computer equipment used by an accountant is assigned to depreciation expenses. d. An accountant receives cash payments from clients who were billed for services.
The calculation of 365 divided by the accounts receivable turnover value is the formula for
a. return on owner's equity; b. average collection period; c. inventory turnover; d. average days to sell inventory; e. quick ratio.
Answer the following statements true (T) or false (F)
There is usually information symmetry between the firm and outsiders.
An organization relates actively and continuously to certain segments of its clients, employees, directors and the community. They are
a. primary publics b. secondary publics c. tertiary publics d. irrelevant publics e. internal publics