Estimating a firm's forward looking EPS is considered to be easier than determining an appropriate price-earnings multiple to be used in a valuation process
Indicate whether the statement is true or false
TRUE
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Which of the following best describes a profit center:
a. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. b. authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. c. authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. d. authority to provide specialized support to other units within the organization. e. responsibility for combining the raw materials, direct labor, and other factors of production into a final product.
With regard to the time value of money,
a. amounts are adjusted for inflation over the period of the investment. b. the amount of the present value is always higher than the future value. c. the future value amount is always higher than the present value amount. d. the present value and the future value have to be equal.
Which of the following is an invalid (false) statement about nonprofits?
a. The revenues of the largest would put it in the Fortune 500 b. Their employees and volunteers comprise approximately 10% of the U.S. workforce c. Their managers earn less than equivalent for-profit organization managers d. Their missions and tasks are important but not as complex and hard as those of for-profit organizations e. The nonprofit sector has been growing faster than most sectors of business (excepting technology)
In September, OSHA issued six serious citations to a woodworking company for exposing employees to hazards from paint and lacquer vapors and for improperly stored flammable materials. Proposed penalties were $7,250. In December, OSHA proposed additional penalties of $27,800 because the company did not provide timely documentation that the issues had been corrected and a follow-up inspection found three uncorrected hazards, three hazards that had been allowed to reoccur, and a new hazard. The December proposed penalty is for which type of violation?
A. Willful B. Failure to abate C. Other than serious D. Repeated E. Conscious violation