What is the term for the profits that are distributed to all owners of a corporation?
A) Tender
B) Interests
C) ESOP
D) Dividends
E) Yield
Answer: D
Explanation: D) The owners of a corporation are the stockholders. Profits are distributed to stockholders in the form of dividends.
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Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________
A) separate entity B) strategic business unit (SBU) C) cash cow D) star E) business portfolio
Cutter Company, a distiller of liquors, ages its whiskeys for approximately 10 years. The firm must pay the costs to produce the whiskey and to store it during the aging process. Using the whiskey as collateral, Cutter could borrow to finance the costs incurred during the aging process; doing so would, however, lead to Cutter reporting increased liabilities. Instead, Cutter sells the whiskey to a
bank and agrees to oversee the aging process on the bank's behalf. At the completion of the aging, Cutter assists the bank in finding a buyer but is not responsible for ensuring that a sale occurs at a specific price, or at all. Under this arrangement, the bank bears the risk of changes in selling prices for the whiskey. Cutter will probably treat this transaction as a(n) a. executory contract, with no incremental debt on the balance sheet. b. financing arrangement, with incremental debt on the balance sheet. c. financing arrangement, with no incremental debt on the balance sheet. d. sale, with no incremental debt on the balance sheet. e. sale, with incremental debt on the balance sheet.
What is a product-by-value analysis, and what type of decisions does it help managers make?
What will be an ideal response?
The key distinction between consumer products and business products is their intended use.
Answer the following statement true (T) or false (F)