When shareholders pursue strategies such as taking excessive risks or paying excessive dividends, these will result in:I) no action by debtholders since these are equityholder concerns; II) positive agency costs, as bondholders act on various restrictions and covenants, which will diminish firm value; III) investments of the same risk class that the firm is in
A. I only
B. II only
C. III only
D. I and III only
Answer: B
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Which of the following types of sales quotas encourage salespeople toward the products and services that are the most profitable to the company, as opposed to those that have the highest prices or are easiest to sell?
A) sales volume based quota B) profit based quota C) combination quota D) market based quota
What is the smallest or basic unit of information?
A. Database management element B. Data element C. Data model D. Data integrity issue
Jay's Limo Services paid cash dividends of $100. Which of the following general journal entries will Jay's Limo Services make to record this transaction?
A.
| Common Stock | 100 | |
| Dividends | 100 |
B.
| Dividends | 100 | |
| Cash | 100 |
C.
| Cash | 100 | |
| Dividends | 100 |
D.
| Cash | 100 | |
| Common Stock | 100 |
E.
| Dividends | 100 | |
| Retained Earnings | 100 |
Costs that remain constant in total dollar amount as the level of activity changes are called:
A) fixed costs B) mixed costs C) opportunity costs D) variable costs