Answer:
False
Explanation:
No matter what a company does the possibility of fraud cannot be avoided.
Answer:
Atchulo company should focus on its income centers rather than the whole organization. The company has limited itself to only domestic shipments. It has not considered the international shipment where profit margin can be high and company can benefit from expanding its operations. Also all the cost related to the travelling of shipment to and from the hub is charged to the hub and terminals does not bears the cost.
Explanation:
The revenue for the different terminals and hub is divided so the cost should also be allocated to the respective activities. If the hub is set as cost bearing center then there will no profit to the hub and terminals cost will be reduced and they will enjoy high profit.
Answer:
Policies consistent with the goal of increasing productivity and growth in developing countries are:
1. Protecting property rights and enforcing contracts
2. Providing tax breaks and patents for firms that pursue research and development in health and sciences
Explanation:
To increase productivity and growth in developing countries, it is important that developing countries enhance the mechanisms for protecting property rights and enforcing contracts. These are the bases for attracting more foreign direct investments. The court system should be a system where justice is obtained and a system which can enforce the rights of individuals to own property. Without this basic ingredient, foreign direct investments will be hard to attract.
Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.
The quick ratio compares the total amount of cash + marketable securities + accounts receivable to the amount of current liabilities.
A. Inventory would be a factor in both of these ration (assets). In both of these industries, inventory would be low. You cannot readily stockpile energy and burgers are perishable items.
B. It is true that both of these industries would have low outstanding accounts receivable because people will need their power to survive and fast food places don't offer credit.
C. These two industries deal with cash mainly. Cash doesn't have to be physical currency, but accounts that can easily be paid.
D. Low current and quick ratios are actually signs of good management not poor management.
All of the above are correct EXCEPT answer D.
