Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, and (c) the purchase and sale of short-term investments in the securities of other entities, other than cash equivalents and trading securities.
Answer the following statement true (T) or false (F)
True
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What form must a taxpayer file if he or she is at-risk in an activity?
A. Form 4797. B. Form 8582. C. Form 1040, Schedule D. D. Form 6198.
Directors usually declare dividends less than the legal maximum and thereby allow retained earnings to increase as a matter of corporate financial policy. Which of the following is not a valid reason for this practice?
a. Available cash did not increase by as much as the amount of earnings, so paying the maximum legally permitted dividends would require raising more cash. b. Restricting dividends in prosperous years may permit continued level or steadily growing dividend payments in poor years. c. The firm may need funds for expansion of working capital or for plant and equipment. d. The firm can distribute the funds to shareholders with lower tax burdens for them by using the cash to repurchase shares. e. The firm can distribute steadily growing dividend payments to shareholders thereby increasing the market value of the firm's common stock and increasing the earnings multiple that investors apply.
To what extent can exceptional organizational skills that are largely invisible to its clients be the basis of an enterprise differentiation strategy?
What will be an ideal response?
Which of the followings venture valuation methods is the most effective if the business being valued needs to generate a return greater than investment?
a. adjusted tangible assets b. price/earnings c. discounted future earnings d. replacement value