Answer:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True
2. Stock price will likely fall by the same percentage. False
3. Retention ratio will rise at the same rate. False
Explanation:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.
2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends
3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.
A sales person who convinces a customer to buy a more expensive product than the customer originally intended is using what sales technique C. UPSELLING
Answer: (C) Relationship marketing
Explanation:
The relationship marketing is one of the type of marketing form that helps in providing the various types of campaigns in order to understand the actual response of the consumer about the brands and the products.
The main objective of the relationship marketing is that it helps in creating the various types of new characteristics of the products based on the requirement of the customers and also strengthening the relations with the consumers.
According to the given question, the given company efforts is basically illustrating that the company is basically engaging in the relationship marketing.
Therefore, Option (C) is correct answer.
Answer:
The Journal entries are as follows:
(i) On March 1,
Petty cash A/c Dr. $105
To cash $105
(Petty cash balance)
(ii) During March,
Stamp inventory A/c Dr. $38
Freight out A/c Dr. $14
Misc. Expenses A/c (12+8) Dr. $20
Travel Expenses A/c Dr. $25
over / short A/c (105 -38-14-20-25-6) Dr. $ 8
To cash $105
(Petty cash received)
(iii) On March 20,
Petty cash A/c (190-105) Dr. $85
To cash $85
(Petty cash fund increased to $190)
