Assess the economic conditions facing U.S. firms in 2012. In you assessment, be sure to address the economy-wide recovery from the recession of 2007-2009, inflationary expectations, the political situation, expected economic growth, and consumer confidence. ANSWER By the start of 2012 the U.S. was out of the recession, and well into a “jobless” […]
What were the industry conditions facing Walmart at the beginning of 2012? Specifically, identify and comment about expectations for the sources for increasing revenues, concerns about costs, expectations for online sales, and where the retail industry was situated from a life-cycle perspective. You DO NOT need to address Porter’s Five Forces model in this question. […]
All employee contributions to a qualified retirement plan must be immediately vested. Indicate whether the statement is true or false ANSWER TRUE
With graded vesting, all benefits in defined benefit plans must be vested after 6 to 7 years of service. Indicate whether the statement is true or false ANSWER TRUE
Assess Porter’s Five Forces for the Retail industry as they applied to Walmart at the beginning of 2012. The Five Forces are: 1. the threat of new entrants, 2. The bargaining power of customers, 3. The threat of substitutes, 4. The bargaining power of suppliers, and 5. The intensity of rivalries. ANSWER Walmart […]
Which of the following statements is false? A) Insurance companies share information on the claims experience of their insureds. B) A good credit score can lower your insurance premiums. C) Insurance companies cannot refuse to insure you because you have filed a number of small claims. D) Renter’s personal property is not insured under the […]
Global Outlets Inc. expects profits to grow in line with revenues. Which of the following statements about efficiency and leverage would then be consistent with no change in ROE as a result of the growth in profitability? A) No change in asset efficiency and an increase in leverage. B) No change in asset efficiency and […]
Bellview Broadcasting Inc. generates greater cash flows than necessary to continue operations. As a result, the firm could choose to: A) increase dividends. B) buy back outstanding shares of stock. C) make acquisitions consistent with their mission and vision. D) All of the above. ANSWER D
The iron law of risk and return means that A) to earn higher investment returns you must undertake higher investment risk. B) to earn higher investment return you run the risk of filing a fraudulent tax return. C) most investments require your strict adherence to securities laws. D) as a beginning investor you run the […]
Walmart’s operating strategy is to be the lowest-cost, lowest-priced competitor in the industry. Indicate whether the statement is true or false ANSWER TRUE
