Most entrepreneurs have little difficulty with gathering market information.
Answer the following statement true (T) or false (F)
False
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Which of the following benefits is offered by sales promotion tools?
A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling. B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions. C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers. D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.
When using the Dividend Discount Model, assuming that growth (g) will remain constant, under which of the following circumstances will the dividend yield be equal to the required return on a common stock (rs)??
A. ?g = 0 B. ?g > 0 C. ?g < 0 D. ?g = rs E. ?g > rs
After their annual performance appraisals, Nathan and Danny, copy editors at a travel magazine, were given lump sum payments to reward them for their excellent job performance in all four quarters of the last fiscal year. Given this information, Nathan and Danny were most likely paid _____.
A. salaries B. wages C. commissions D. bonuses
Dawn, a sole proprietor, was engaged in a service business and reported her income on a cash basis. Later, she incorporates her business and transfers the assets of the business to the corporation in return for all the stock in the corporation plus the corporation's assumption of the liabilities of her proprietorship. All the receivables and the unpaid trade payables are transferred to the newly
formed corporation. The assets of the proprietorship had a basis of $105,000 and fair market value of $300,000 . The trade accounts payable totaled $25,000 . There was a note payable to the bank in the amount of $95,000 that the corporation assumes. The note was issued for the purchase of computers and other business equipment. a. Dawn has a gain on the transfer of $15,000. b. The basis of the assets to the corporation is $300,000. c. Dawn has a basis of $10,000 in the stock she receives. d. Dawn has a zero basis in the stock she receives. e. None of the above.