Which of the following represents a disadvantage for holding companies?
A) relatively high dollar investment associated with it
B) increased risk resulting from the leverage effect
C) control of lesser amounts of assets than they could acquire through mergers
D) failure of one of the companies results in the failure of the entire holding company
B) increased risk resulting from the leverage effect
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Guests act as unpaid consultants in the following examples, except for ______.
a. Uber or Lyft riders who rate and review their driver. b. Customers voting for a new flavor at a juice bar. c. A mystery shopper giving feedback on a hotel’s service quality. d. Customers who will out comment cards or utilize tableside kiosks to rate service.
Fashions, Inc has 12 shareholders. There is no shareholder agreement concerning the board of directors. The company is subject to the Model Act. How many directors is Fashions, Inc required to have?
a. None. b. One. c. Two. d. Five.
Define class voting. Why would a group of investors be interested in a guarantee of class voting?
When a seller uses "zone pricing," the actual freight charge for delivering each order is included in the price the buyer pays for the product.
Answer the following statement true (T) or false (F)