A managerial preference for a very low degree of operating leverage might indicate that
a. an increase in sales volume is expected.
b. a decrease in sales volume is expected.
c. the firm is very unprofitable.
d. the firm has very high fixed costs.
B
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Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?
a. Acquiring foreign companies would become a more confusing proposition. b. Corporations may find themselves more susceptible to lawsuits due to the principles-based system. c. Time and money would not be saved in accessing capital markets abroad. d. The SEC would be dissolved if international accounting standards were adopted.
Nadya is designing a mobile ad to promote her company's widgets. Where should the company's logo appear in the mobile ad?
A) in the middle of the ad B) centered at the bottom C) centered at the top D) in the corner E) it should not appear
One potential advantage of financing corporations through the use of bonds rather than common stock is
A) the interest on bonds must be paid when due B) the corporation must pay the bonds at maturity C) the interest expense is deductible for tax purposes by the corporation D) a higher earnings per share is guaranteed for existing common shareholders
In formatting a report, you discover than an entire table will not fit on the bottom of a page; the best formatting decision would be to
a. place the table prior to the text reference to it if that placement will allow the entire table to appear on the page. b. begin the table, allow an adequate margin at the bottom of the page, and begin the next page with the continuation of the table. c. introduce the table, continue the graphic interpretation to the bottom of the page, and begin the next page with the table. d. end the page with the introduction to the table, regardless of the space on the page.