If someone deliberately understates costs and thereby increases profits, this can cause the stock price to rise above its intrinsic value. The stock price will probably fall in the future. Also, those who participated in the fraud can be prosecuted, and the firm itself can be penalized.
Answer the following statement true (T) or false (F)
True
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The objective of capital budgeting is to help only in the preparation of reports that will be submitted to the managers
Indicate whether the statement is true or false
Sam wants to sell his golden retriever to Al. Sam tells Al that the dog is three years old and that he will point, back, and retrieve. Al relies on these statements and purchases the bird dog. Although the dog is three years old and will point at birds, he will not back (honor another dog's point). The buyer has most probably been a victim of:
a. duress. b. undue influence. c. fraud in the inducement. d. fraud in the execution.
A power of attorney is an example of
a. incidental authority. b. implied authority. c. statutory authority. d. express authority.
Mountainside Coffee Company and Nature's Cuisine, Inc, enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is A) a bill of lading
B) a destination contract. C) ashipment contract. D) a warehouse receipt.