Benny-Duke Inc reported a net income of 7 million but paid no dividends to its shareholders. The shareholders should sue the company for failure to provide a return on their equity investment.
Indicate whether the statement is true or false
Question 2 - If the owner of a sole proprietorship retires or dies, the owner's heirs may take over the business and either sell it or continue to operate it.
Indicate whether the statement is true or false
Question 3 - Individuals or organizations outside of a company will never have the need or desire to view information on another company's finances.
Indicate whether the statement is true or false
Question 4 - Tom Willis, owner-manager of J&P Manufacturing Company, has tried just about everything to motivate his employees. He has added new fringe benefits, including legal services; he has improved safety conditions; and he has increased employee pay by 7 percent across the board. None of these actions seem to have worked. Now Tom wonders what he should do next. Which of the following would you suggest?
A) Increase pay to 17 percent across the board.
B) Add a day-care center to the employee benefits package.
C) Prepare and distribute a company policy manual.
D) Improve job security.
E) Enrich jobs as necessary.
Question 5 - If an invoice lists the terms 2/10 net 30, it means that the supplier is offering a 10 percent cash discount off the invoice price if the buyer pays within 2 days.
Indicate whether the statement is true or false
Question 6 - Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.
Indicate whether the statement is true or false
Question 7 - According to the Sarbanes-Oxley Act, the FTC is required to establish a full-time, five-member federal oversight board that will police the accounting industry.
Indicate whether the statement is true or false
Question 8 - At midyear, Susan, the manager of a store, realizes that the new outlet mall with 300 stores down the street is taking much of the sales away from her store, so she will need to revise the sales goals of her sales associates. Susan is in what stage of the MBO process?
A) One
B) Two
C) Three
D) Four
E) Five
Quick Reply
