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Question
The equivalent annual cost method is useful in determining:
A) which one of two machines to purchase if the machines are mutually exclusive, have differing lives, and are a one-time purchase.
B) the operating cash flow for mutually exclusive projects ignoring any fixed asset acquisitions or dispositions.
C) the minimum price that should be bid to earn a specified rate of return.
D) which one of two investments to accept when the investments have differing required rates of return, differing costs, and will not be replaced once they wear out.
E) which one of two machines should be purchased when the machines are mutually exclusive, have differing lives, and will be replaced at the end of their lives.
Answer
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Q:
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Q:
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B) growth rate of the firm.
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D) market value per share of outstanding stock.
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Q:
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A) distributes profits based on percentage of ownership.
B) has an unlimited partnership life.
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D) limits each partner's personal liability to 25 percent of the partnership's total debt.
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Q:
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B) the partner's active participation in the firm's activities.
C) the lack of any potential financial loss.
D) the daily control over the business affairs of the partnership.
E) the partner's maximum loss is limited to their capital investment.
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Which one of the following statements concerning a sole proprietorship is correct?
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B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company.
Q:
Which one of the following questions is least likely to be addressed by financial managers?
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B) Should customers be given 30 or 45 days to pay for their credit purchases?
C) Should the firm borrow more money?
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E) How much cash should the firm keep on hand?
Q:
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A) how many shares of stock to issue.
B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
D) how much inventory to keep on hand.
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The date on which a shareholder is officially listed as the recipient of stock rights is called the:
A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.