Answer:
The discount rate should Honest Abe's use if it considers a project that involves the manufacturing of furniture is 12.46%
Explanation:
In this question, w e use the Capital Asset Pricing model method, which is shown below:
Expected return = Risk-free rate of return + Beta × market risk premium
= 3.5% + 1.12 × 8%
= 3.5% + 8.96%
= 12.46%
In this we use the Integral design beta not the Honest Abe beta
Answer:
A) Mutual gains could be realized if the United States specialized in producing food and South Korea in producing clothing.
Explanation:
The United States has more available land for farming, while South Korea has many factories.
Answer:
Explanation: For the better part of a decade, strategy has been a business buzzword. Top executives ponder strategic objectives and missions. Managers down the line rough out product/market strategies. Functional chiefs lay out “strategies” for everything from R&D to raw-materials sourcing and distributor relations. Mere planning has lost its glamor; the planners have all turned into strategists.
Answer:
1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D
Explanation:
Securities held to maturity --
It requires the positive intent as well as ability.
Unrealized holding gains and losses --
Reported for the income statement of trading securities.
Impairment of securities available for sale --
Requires a recognition in income statement when judged to be other than the temporary.
Losses of investee --
Recognized only to extent of the carrying value under an equity method.
Amortization of a patent that was obtained in a business acquisition --
Reduces the investment account under an equity method if the fair value is higher than the book value.
Answer:
D. Limited Partnership
Explanation:
Sole proprietorship is business owned , run & managed by single owner. Partnership is a business owned , run & managed by small group of people - deciding to share its profits .
Entrepreneurs in these have Unlimited Liability on personal assets, in case business assets are insufficient to settle business liabilities .
Corporation is a separate legal entity, distinct from its huge group of owners , guided by a board of directors. In case of any claim / sue case : it is against corporate entity & not the people, so they don't have any unlimited liability risk on personal assets to fulfil company's claims .
