Despite the drawbacks of the payback method, the entrepreneur should continue to use it because
a. it is very simple to use in comparison with other methods.
b. projects with a faster payback period normally have more favorable long-term effects on earnings.
c. it provides a faster return of funds over time.
d. it is inexpensive.
ANSWER: a
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What is threat of new entrants?
A. The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). B. High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market. C. High when there are many alternatives to a product or service and low when there are few alternatives from which to choose. D. The ability of buyers to affect the price they must pay for an item.
The accounting for the allocation of overhead costs is a three-step process and occurs at three different points in the accounting cycle.
List each of the three steps. For each step indicate when the step occurs and why the step is needed.
A(n) _____ is created to complete specific, one-time tasks within a limited time.
A. traditional work group B. functional team C. employee involvement team D. project team
Which of the following actions does NOT constitute an ‘offer'?
A) A homeowner advertises his house for sale with an asking price of $450,000 B) A customer selects a grocery item from a shelf and presents her credit card to the cashier as payment for it C) A person places an ad on Kijiji to sell a motorcycle for $3,800 D) A storeowner displays cheese for sale with a price tag of $4 per package E) All of the above are valid offers