The reorder point is the point at which a firm receives orders. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Since its objective is to minimize inventory investment, a Just-in-Time (JIT) system uses no, or very little, safety stocks. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Contract devices explicitly designed to thwart a hostile takeover attempt are called poison pills or shark repellents. Examples include all of the following EXCEPT: a. a shareholder rights plan that can be issued as dividends at management’s discretion. b. an event-triggered put provision in one of the firm’s debt contracts. c. a provision in the […]
Date: September 19th, 2020
The Financial Accounting Standards Board (FASB) has recently voted to eliminate (i) accounting for mergers, and henceforth will allow only the (ii). (i) (ii) a. purchase method pool of interest b. amalgamation consolidation c. pooling of interest purchase method d. consolidation amalgamation ANSWER C
Date: September 19th, 2020
The basic strategies that should be employed by a business firm in managing cash includes ________. A) paying accounts payable as early as possible B) turning over inventory as quickly as possible, avoiding stockouts C) operating in a fashion that requires maximum cash D) extending the credit period allowed to customers ANSWER B
Date: September 19th, 2020
For minimizing the cash conversion cycle, a firm should ________. A) grant longer credit terms to customers to maintain healthy business relations B) pay off accounts payables as fast as possible to gain credibility C) turn over inventory as quickly as possible without stockouts D) increase mail managing, processing, and clearing time when collecting from […]
Date: September 19th, 2020
TRUE or FALSE: A merger announcement induces a substantial positive abnormal return on the acquiring firm’s stock (approximately 20%, on average), while the target firm’s stockholders are either unaffected or sustain small losses, on average. a. TRUE b. FALSE ANSWER B
Date: September 19th, 2020
Perhaps the best circumstance that would lead to gains for the shareholders of both the bidder and the target in a takeover is when a well-managed firm takes over a poorly managed firm. Thus, the greatest gains in those takeovers in which the bidder has a (i) Tobin’s q ratio (is well managed) and the […]
Date: September 19th, 2020
The bidder in a takeover generally should take advantage of temporary anonymity to purchase shares of the target before its intentions are publicly known and the target firm’s price rises. Such initial purchases establish a _. a. foothold b. leghold c. armhold d. toehold ANSWER D
Date: September 19th, 2020
Adong’s Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory for 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of $1,960,000 on operating cycle investments. Adong currently pays 10 percent for its financing. (Assume […]
Date: September 19th, 2020
