Recording revenues early overstates current-period income; recording revenues late understates current period income.
Answer the following statement true (T) or false (F)
True
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A major advantage of a retail information system is _____
a. the continuous nature of data collection and analysis b. its low cost c. the use of competitor data d. the use of verified data from government sources
Greg works for an electronics firm. The firm has had a few product flops but Greg thinks that its newest product will be highly successful. Greg's job is to try and convince retailers to carry it. One incentive he decides to use is to undertake a large-scale advertising campaign touting the benefits of the product. He informs retailers that if they choose to carry the product, the company will mention them in their advertisements so interested consumers know where to go to find the product. Greg is using _________________ as an incentive to resellers.
A. a dealer listing B. a dealer loader C. a merchandise allowance D. cooperative advertising E. a premium
Anita has been named CEO of a popular sports apparel company. As CEO, she is tasked with setting the firm's corporate strategy. Which of the following decisions is Anita most likely to make?
A. whether to pursue a differentiation or cost leadership strategy B. which customer segments to target C. what range of products the firm should offer D. how to achieve the highest levels of customer satisfaction
Liquidated Damages versus Penalties. The Ivanovs, who were of Russian origin, agreed to purchase the Sobels' home for $300,000. A $30,000 earnest money deposit was placed in the trust account of Kotler Realty, Inc, the broker facilitating the
transaction. Tiasia Buliak, one of Kotler's salespersons, negotiated the sale because she spoke fluent Russian. To facilitate the closing without the Ivanovs' having to be present, Buliak suggested they form a Florida corporation, place the cash necessary to close the sale in a corporate account, and give her authority to draw checks against it. The Ivanovs did as Buliak had suggested. Before the closing date of the sale, Buliak absconded with all of the closing money, which caused the transaction to collapse. Subsequently, because the Ivanovs had defaulted, Kotler Realty delivered the $30,000 earnest money deposit in its trust account to the Sobels. The Ivanovs then sued the Sobels, seeking to recover the $30,000. Was the clause providing that the seller could retain the earnest money if the buyer defaulted an enforceable liquidated damages clause or an unenforceable penalty clause? Discuss.