Subordinated debentures are more risky than unsubordinated debentures because the claims of
subordinated debenture holders are less likely to be honored in the event of liquidation.
Indicate whether the statement is true or false
TRUE
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Identify the situation where channel members have significant bargaining power over the marketing manager
A) When the channel's sales volume is low relative to the product's total sales volume. B) When the product is well differentiated from competitors. C) When the channel poses a credible threat of backward integration. D) When the channel has high switching costs.
Why do lessees tend to prefer the operating lease method to the capital lease method?
a. The capital lease method results in larger long-term debt and debt-equity ratios during the life of a lease than the operating lease method. b. A larger debt ratio makes a firm appear more risky. c. The operating lease method recognizes expense more slowly over the life of the lease than the capital lease method. d. all of the above e. none of the above
The big problem a franchisor faces is
A. allowing franchisees to achieve scale economies. B. maintaining quality control due to a lack of commitment to consistency and standardization. C. eliminating the costs and risks associated with establishing a foreign business location. D. achieving higher product quality and better product performance than with an export strategy. E. sharing foreign facilities and marketing strategies with local businesses.
MRP II is accurately described as:
A) MRP software designed for services. B) MRP with a new set of computer programs that execute on microcomputers. C) material resource planning. D) an enhancement of MRP that plans for all levels of the supply chain. E) a new generation of MRP software that extends MRP to planning and scheduling functions.