Which of the following statements is true about a monetize-cash-flow defensive strategy?
A) It operates with minimal marketing resources.
B) It is used when an optimize position strategy is viable.
C) It allows a business to exit a market quickly.
D) It is used by a business to exit the market slowly.
E) It aims to extract the maximum long-run cash flow from the market.
A
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A. storming B. norming C. performing D. forming E. adjourning
An investor is reading the financial statements of the Stankey Corporation and observes that the statements are accompanied by an auditor's unqualified report. From this, the investor may conclude that:
A. the auditor is satisfied that Stankey will be highly profitable in the future. B. the auditor is certain that Stankey's financial statements have been prepared accurately and that all account balances are precisely correct. C. any disputes over significant accounting issues have been settled to the auditor's satisfaction. D. the auditor has determined that Stankey's management is not qualified to lead the company.
On November 1, Jasper Company loaned another company $260,000 at a 9.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
A. $6975. B. $3900. C. $8300. D. $20,300. E. $0.
On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,800. Inventory purchased during August was $192,670. Sales for the month of August were $543,200. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.
A. $134,730 B. $81,550 C. $191,190 D. $87,550 E. $82,550