Companies that are exposed to the business cycle:

A. tend to have low market risk.
B. are safe investments.
C. tend to have high market risk.
D. have negligible specific risk.


Answer: C

Business

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Future taxable income is characteristic of all of the following situations except:

a. where deferred tax assets result. b. where deferred tax liabilities result. c. where the tax basis of liabilities exceed the financial reporting basis. d. where the tax basis of assets is less than financial reporting basis.

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Under the cost-adjusted-to-market method of accounting for an investment,

a. Dividend Income is credited when dividends are received. b. the investment account is credited when dividends are received. c. the investment account is credited when the investee reports a net income. d. Investment Income is credited when the invested reports a net income.

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a. is limited by signals we receive through our five senses. b. appears the same to each person when communication is effective. c. eliminates confusion in communication. d. is the same for people from the same culture.

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