Answer the following statement(s) true (T) or false (F)
1. The SBA often guarantees long-term debt financing from a bank for a new business.
2. Most long-term loan agreements act as a promissory note and require some form of collateral.
3. Stocks and bonds are forms of long-term equity financing.
4. The details of a bond agreement (maturity date and rate of interest) are spelled out in agreements called a debenture.
5. Generally, the lower the quality of the bond, the higher the interest rate paid to bondholders.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant paid $3,600 on accounts payable. Which of the following statements is incorrect?
A. Gant's current ratio will increase. B. Gant's quick ratio will increase and its current ratio will decrease. C. Gant's quick ratio will increase. D. Gant's working capital will remain the same.
Job turnover, performance, and absenteeism can often be predicted using a(n) _____
a. goal-oriented job description b. application blank c. weighted application blank d. job analysis
Which of the following statements is true?
A) Shareholders in a C corporation can use C corporation losses to offset shareholder income from other sources. B) C corporation losses remain in the C corporation and can offset capital gain income from other years. C) C corporation shareholders are taxed based on their proportionate share of income. D) Distributions of C corporation income are not taxable.
The margin of error is:
A) the largest possible sampling error at a specified level of confidence. B) the critical value multiplied by the standard error of the sampling distribution. C) Both A and B D) the difference between the point estimate and the parameter.