The problem of adverse selection helps to explain why direct finance is more important than indirect finance as a source of business finance
Indicate whether the statement is true or false
FALSE
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Southern Manufacturing applies overhead to its products based on direct labor hours. During 2011 the company allocated overhead using a predetermined overhead rate of $5.25. At the end of 2011 it was determined that overhead was underapplied by $10,000. Which of the following could not be a possible reason for overhead being underapplied?
A) Estimated overhead costs differed from actual overhead costs. B) Estimated direct labor hours differed from actual direct labor hours. C) The cost driver does not have enough correlation with overhead costs. D) Applied overhead was higher than actual overhead.
The ratio that measures the amount of value each remaining dollar in the budget must earn to stay within the budget is the ________.
Fill in the blank(s) with the appropriate word(s).
Bild-It-Rite Corporation is a public company that is poised to issue securities that do not qualify for an exemption from registration. This means that Bild-It-Rite must
A. file a registration statement with the SEC. B. issue the securities through an online registration site. C. refrain from issuing the securities to unregistered investors. D. register the securities with a national stock exchange.
________ are mergers between firms in totally unrelated businesses.
A. Market extension mergers B. Conglomerate mergers C. Horizontal mergers D. Forward vertical mergers