Answer:
D. 7
Explanation:
Based on the information provided within the question it can be said that they need to appoint a total of 7 outside board members to achieve board independence. This is because in order to achieve board independence the board needs to consist of more members that are not employees than those who are. This is because votes need to be made in accordance to what is best for the company and shareholders, which may not always be best for the employees. Therefore when voting the employees may be biased.
Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
Answer:
Inventory records
Explanation:
Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system. For example, inventory records are more accurate and timely, enabling sales order entry staff to provide customers more accurate information about delivery dates.
Systems Enterprise Resource Planning (ERP) information systems that integrate applications to manage all departments and functions of as production, sales, purchasing, logistics, accounting, project management, and inventory control warehouses, orders, payroll, etc.
Legacy systems can be difficult to integrate in a newer system because of their unique structure.
Saturn and Jupiter both have large quantities of liquid
hydrogen and liquid metallic hydrogen while Neptune and Uranus just have the
gaseous form of hydrogen because they are too little to compress hydrogen to
its metallic state. Also, the two latter planets have icy cores.
Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
