When the equity method is used to account for a long-term investment in stock of another company, the carrying value of the investment is affected by
a. declines in the market value of the stock.
b. the earnings and dividends of the investee.
c. an excess of market price over cost.
d. neither the earnings nor the dividends of the investee.
B
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Licensing as a market entry mode has several disadvantages and opportunity costs, which does not include:
A) limited market control. B) agreement may have short life. C) leveraging and exploiting by licensee. D) similar product or technology development by licensee. E) adaptations by licensee to fit local tastes.
Search engine marketing is the process of getting more traffic based on higher rankings of free or "organic" search results on search engines.
Answer the following statement true (T) or false (F)
Which of the following item(s) must be included in the income of the respective employees?
A) ABC Hospital Corporation provides free meals in the hospital cafeteria to employees while on duty in order that they be available for emergency calls. B) The state of California highway patrol organization provides its officers with a daily meal allowance to compensate them for meals eaten at any location while they are on duty. C) IBX Corporation requires its employees to work overtime three evenings each year when the company takes inventory. The corporation pays to provide catered dinners on its premises on these evenings. D) A hotel requires its hotel manager to live in a suite without charge in order to be on call outside her normal work hours.
Suppose that Farrah's Hair Care has annual sales of $100,000, cost of goods sold of $65,000, average inventories of $2,000, and average accounts receivable of $5,000. Assuming that all of Farrah's sales are on credit, what will be the firm's operating cycle?
A. 29.48 B. 7.02 C. 18.25 D. 11.23