Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders?
A. Compensating managers with stock options.
B. Financing risky projects with additional debt.
C. The threat of hostile takeovers.
D. The use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers' actions.
E. Abolishing the Security and Exchange Commission.
Answer: D
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A careless accountant splattered spaghetti sauce on Kitchen Company's balance sheet. The balance sheet with its missing amounts is provided below:
Kitchen Company's working capital is $138,000.Required:Compute the missing amounts. Record your answers in the following table:
What will be an ideal response?
Which of the following statements is true?
a. When the Margin of Safety (MS) is low, the Degree of Operating Leverage (DOL)is high. b. As sales increase from the break-even point, MS increases but the DOL decreases. c. The relationship between the MS percentage and the DOL is: MS% = 1/DOL d. All of the above statements are true.
The public has access to the activity of administrative agencies in three ways: (1 ) open records, (2 ) open meetings, and (3 ) public announcement of agency guidelines
Indicate whether the statement is true or false
Which of the following is not one of the major functions of shop-floor control?
A. Assign a priority to each shop order. B. Measure efficiency, utilization, and productivity of manpower and machines. C. Load machine hours into workstations. D. Track WIP quantity by location by shop order to accounting. E. Convey shop order status information to the office.