QUESTION Which of the following, if true, strengthens the argument of Domino Grace’s management? A) Higher revenues would lead to higher profits for Domino Grace. B) If the derivative investments perform poorly, managers at Domino Grace will not pay any financial penalties. C) Domino Grace financial advisors are well-trained in handling complicated investment options. D) […]
QUESTION Suppose that investments in derivatives generated $5 million of revenue for Domino Grace during this calendar year. The managers who proposed offering derivatives contend that this statistic demonstrates that offering derivatives increased Domino Grace revenues this calendar year by $5 million. Which of the following points out a flaw in this argument? A) It […]
QUESTION Which of the following, if true, weakens the argument of Domino Grace’s management? A) Competitors of Domino Grace have lured new customers by offering access to exotic new investment options. B) A new political administration is expected to pass new financial regulations affecting derivative investments. C) Derivative investments are similar to most investments in […]
QUESTION Which of the following, if true, might make the option more appealing to a prospect? A) In recent months, the stock market has become more bullish, making mutual funds a better bet. B) The firm pays the maintenance fees for the investments. C) Employees may choose the amount set aside each month, up to […]
QUESTION Which of the following assumptions does Ryerson have to make to support his statements? A) Some people make money by investing. B) Interest is the only thing that changes the value of a savings account. C) Most people want to save money instead of spending it. D) Companies issue stock only if there is […]
QUESTION Greenmax’s chief financial officer likes the idea of expanding into markets in the southern hemisphere because he argues that this will help the company generate a consistent year-round cash flow. Which of the following, if true, strengthens the CFO’s argument? A) Energy drinks are popular in many different parts of the world. B) Demand […]
QUESTION A corporate consultant concludes that a Disney business unit deserves heavy investment because three of its four product lines are highly profitable and have high market share. Which of the following, if true, most undermines this conclusion? A) The product lines making high profits sell goods with lower prices than the goods sold by […]
QUESTION Which of the following, if true, strengthens the case for Munschausen’s seeking to acquire capital by debt financing? A) Munschausen will have very slim profit margins in its international sales. B) Munschausen will hire many new salespeople to work internationally. C) Munschausen will have a steady stream of revenue from its international sales. D) […]
QUESTION Which of the following, if true, weakens the case for Munschausen’s seeking to acquire capital by equity financing? A) The equity capital market in Europe is currently very strong. B) Equity financiers expect a consistent return on their investments. C) Many of the companies in Germany get financing from equity capital. D) Only the […]
QUESTION A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart. Which of the following is the LEAST effective measure StarMart could take to address this potential problem? A) publicize the company’s policies in clear and easy-to-understand language B) charge no more than the typical interest rate for […]
