The primary purpose of a 401(k) plan is to:
A) save for retirement on a tax-deferred basis
B) save for retirement on a tax-free basis
C) save for retirement and have your employer match your contributions, all on a tax-free basis
D) have a forced savings plan for emergencies
A
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Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence
A) sprinklers B) fountains C) chimneys D) skyscrapers E) towers
If a negotiable instrument is payable on demand, it is overdue:
A. the day after demand for payment has been made in a proper manner and form. B. 60 days after its date if it is a check. C. 30 days after its date if it is a check. D. 3 days after demand for payment has been made in a proper manner and form.
Jurisdiction-specific corporate laws limit directors' freedom to declare dividends. Which of the following is/are true?
a. The board may not declare dividends "out of capital," that is, debited against the contributed capital accounts, which result from fund-raising transactions with owners. b. The board must declare them "out of earnings" by debiting them against the Retained Earnings account, which results from earnings transactions. c. "Capital" may mean the par or stated value of outstanding common shares or the total amount paid in by shareholders. d. Some jurisdictions allow corporations to declare dividends out of the earnings of the current period even if the Retained Earnings account has a debit (negative) balance because of accumulated losses from previous period. e. all of the above
Which ratio would you use to examine a company's ability to pay its debts in the short term?
A. Return on equity B. Earnings per share C. Acid-test ratio D. Debt to assets ratio