Answer: A. Lowering the degree of operating leverage.
Explanation:
The degree of operating leverage measure how much the earnings from a project will change as a result of sales.
If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.
Answer:
Options includes the followings: Relevance, Faithful representation, Predictive value, Confirmatory value, Comparability, Completeness, Neutrality, Timeliness.
a. Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. select a qualitative characteristic.
Qualitative characteristics: Comparability
b. Having information available to users before it loses its capacity to influence decisions.
Qualitative characteristics: Timeliness
c. Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future.
Qualitative characteristics: Predictive Value
d. Information that is capable of making a difference in the decisions of users in their capacity as capital providers.
Qualitative characteristics: Relevance
e. Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Qualitative characteristics: Neutrality
Answer:
The statement is true.
Explanation:
The investor aversion to risk must be compensated with an increased return to make it more feasible.
If all bonds' return were the same then, investor will not invest on high risk bonds.
Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.
Answer:
The contract wasn't formed because of closing of offer due to closing of offeree.
Explanation:
The offeree can only accept the offer if:
1. The Offer is not closed.
2. The offerer is alive.
3. No offerer qualifies age limit.
4. The Offered is in senses which means he is not drunk or suffering from mental illness that affects thinking of what is right or wrong for him.
Clearly from the above conditions the condition 2 is not satisfied here because offerer died before the acceptance of offer. Hence the contract was not formed and Executor did right by refusing to deliver the deed to black-acre in exchange for money.
Answer:
False
Explanation:
An increase in appraisal costs will probably lead to a decrease in internal failure costs and an increase in external failure costs is a false statement as costs associated with measuring, evaluating or auditing products or services to assure great quality is the appraisal costs.
Internal Failure Costs: Costs emanating of products or services not corresponding to demands or consumer/user requirements. You would willingly have this outside of the failure costs
External Failure Costs: Costs occurring from products or services not adhering to demands or consumer/user requirements AFTER shipment or consignment of the goods.
