Gino is the CEO of a financial services firm. What action should Gino take to be sure the firm avoids moral hazards?
A. Gino must increase hiring and develop influential relationships with government officials so that his firm will be considered "too big to fail."
B. He must create a plan in which government agencies or a consortium of other financial services firms will assume any future debts of the company.
C. He should closely monitor the behavior and performance of new employees to be certain that they have the skills they claimed to have in interviews.
D. Gino should define undue risk-taking, institute strict auditing of loans, and make it clear that the company will fire employees who lend recklessly.
Answer: D
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Which of the following entries would be recorded by a company that uses the cash basis method of accounting?
A) Cash 1,000 Accounts Receivable 1,000 B) Salaries Expense 1,000 Salaries Payable 1,000 C) Prepaid Rent 1,000 Cash 1,000 D) Rent Expense 1,000 Cash 1,000
Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as
A. international consumers. B. meganational consumers. C. transnational consumers. D. global consumers. E. multinational consumers.
Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV's), motorcycles, and snowmobiles. Use the financial information in the table to calculate Polaris' maximum internal growth rate
Selected Ratios Polaris Industries Inc As of December 31, Year 5 ROE 38.76% ROA 18.63% Net Profit Margin 7.51% Total Asset Turnover 2.48 Dividend Payout Rate 20% A) 8.1% B) 17.5% C) 22.9% D) 44.9% E) 63.3%
The courts have held that an oral partnership agreement is not legally binding and, therefore, cannot be enforced.
Answer the following statement true (T) or false (F)