The purpose of the restrictive debt covenant that prohibits the sale of accounts receivable is to ________
A) assure the lender that additional borrowing is constrained
B) limit the amount of fixed-payment obligations
C) limit the realization of current assets to cash
D) limit the payment of annual cash dividends
C
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Using templates in preparing reports
A) limits your creativity and makes your report look ordinary. B) is a sign of incompetence. C) ensures new content matches the rest of the wiki. D) is costly and time-consuming. E) usually makes reports more difficult to read.
Describe three methods by which a brand can communicate category membership
What will be an ideal response?
Sanchez Semiconductors produces 200,000 high-tech computer chips per month. Each chip uses a component that Sanchez makes in-house. The variable costs to make the component are $1.20 per unit, and the fixed costs are $1,200,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $1.00 each. If the company chooses to outsource, fixed costs can be reduced by 30%. There are no other uses for the facilities currently employed in making the component. What would be the effect on operating income, if the company decides to outsource?
A) There would be no effect on operating income. B) Operating income would increase by $400,000. C) Operating income would increase by $200,000. D) Operating income would decrease by $40,000.
Since there are so many other companies that operate in the food service industry, the marketing manager of Gourmet Dining pays detailed attention to what other restaurants that offer similar meals, prices, and services are doing. In the context of external forces affecting marketing decisions, the marketing manager's focus is on ________.
A. demographics B. the political/legal environment C. competition D. the natural world E. technological transformations