Asset replacement decisions involve:
A. Choices between closing down or continuing to operate a segment of a business.
B. Choices between continuing to operate existing equipment or replacing it with new equipment.
C. Choices between continuing to use existing materials or replacing them with less expensive materials.
D. None of these answers are correct.
Answer: B
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Greene Partnership had average annual gross receipts for the past three years of $24.8 million and never has reported average annual gross receipts above $25 million. One of the partners is Jackson, Inc., a C corporation. Because Greene meets the average annual gross receipts test, it may use the cash method of accounting even though it has a partner that is a C corporation.
Answer the following statement true (T) or false (F)
In the EOQ model, if our order quantity is less than the economic order quantity, then the annual ordering costs will be ______.
A. the same or lower than the annual holding costs B. the same as the annual holding costs C. higher than the annual holding costs D. lower than the annual holding costs
If Taco Loco reduces the price of the X product by about 82 cents, then their optimal product mix will contain ________ X
Fill in the blank with correct word.
The reason investors buy bonds is to ________
A) earn interest B) own controlling interest in the company C) exercise voting rights in a company D) receive dividend payments