Advantages of Simplicity of Decision Making
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Advantages of Simplicity of Decision Making
- The sole proprietorship represents single-person ownership and offers the advantages of simplicity of decision making and low organizational and operating costs. ____True ___False
- In terms of revenues and profits, the corporation is not by far the most important form of business organization in the United States. ____True ___False
- A major focus of the Sarbanes Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities and income in their financial statements. ____True ___False
- Maximizing the earnings of the firm is not the goal of financial management. ____True ___False
- The primary market includes the sale of securities by way of initial public offerings.
____True ___False
- In the United States, stocks sold on either the New York Stock Exchange or NASDAQ are not considered sold in the primary market. ____True ___False
- The P/E ratio is strongly related to the past performance of the firm. ____True ___False
- Stockholders’ equity is not equal to assets minus liabilities. ____True ___False
- As the contribution margin rises, the breakeven point goes down. ____True ___False
- Which of the following is not considered to be a profitability ratio?
- Profit margin
- Times interest earned
- Return on equity
- Return on assets (investment)
- Which of the following did not contribute to the financial crisis?
- The change from mark-to-market accounting to
- Solid credit ratings from the ratings agencies
- The extension of credit to high-risk borrowers
- The takeover of JP Morgan Chase by Bear Sterns
- Mark this response if all of the above contributed to the financial crisis
- The net worth of a firm
- Is usually the same as the firm’s market value
- Is based on current asset costs
- Is based on current liabilities
- NONE OF THESE
- Match the following with questions below:
1) Depreciation
2) Cash flows from investing
3) Free cash flow
4) Marketable securities
5) Cash flow from financing
6) Statements of cash flows
7) Net worth or book value
8) Historical cost accounting
9) Income statement
10) Earnings per share
11) Notes payable
12) P/E ratio
13) Cash flows from operations
14) Liquidity
15) Stockholders’ equity
16) Marginal corporate tax rate
17) Balance sheet
- a) All the assets of the firm minus the liabilities and preferred stock___________
- b) A financial statement that indicates what the firm owns, and how these assets are financed in the form of liabilities or ownership interest ________
- c) Changes accrual-based information from income statement and balance sheet to cash based information_______
- d) The relative convertibility of short-term assets into cash_______
- e) The levy expressed as a percentage that applies to each new dollar of taxable income _____
- f) The multiplier applied to earnings per share to determine current value ______
- g) The income available to common stockholders’ divided by the number of common shares outstanding ________
- h) A financial statement that measures the profitability of the firm over a period of time_____
- i) Temporary investments of excess cash________
- j) Represents the net cash flow that results from changes in the amount of a firm’s long-term assets________
- k) The total ownership position of preferred and common stockholders________
- l) Traditional method of accounting using original costs minus depreciation________
- m) Represents the net cash flow that results from a firm’s production and sales activities________
- n) Short-term signed obligations to banks or other creditors________
- o) Cash flow that is generated (or reduced) from the sale or repurchase of securities or the payment of cash dividends________
- p) The allocation of the initial cost of an asset over its useful life_______
- q) Cash flows from operations minus working capital minus dividend payments________
- The Bubba Corp. had earnings before taxes of $400,000 and sales of $2,000,000. If it is in the 40% tax bracket its after-tax profit margin is:
- 40%
- 12%
- 20%
- 25%
- At the break-even point, a firm’s profits are
- Greater than zero
- Less than zero
- Equal to zero
- Not enough information to tell
- In break-even analysis, the contribution margin is defined as
- Price minus variable cost
- Price minus fixed cost
- Variable cost minus fixed cost
- Fixed cost minus variable cost
- The London Interbank Offered Rate (LIBOR)
- Competes with the U.S. prime rate for those companies with an international presence
- Has been lower than the U.S. prime rate for at least the last decade
- Is the interbank lending rate for London banks
- are correct A and B
- TVM problem: Suppose you deposit 2000 in the bank for 7 years at rate of 9%, how much would you have in 7 years?
- Suppose you would like to purchase a car in 4 years, which will cost you 40,000 at rate of 7% How much do you need to save today?
- Calculate payback an example of payback period and what is the payback period?
- How long would it take to double your money at rate of 10%?
- What interest rate should you seek if you would like to triple your money in 3 years?
- What is the meaning and acronym of WACC and CAPM?
- Explain what 4/15, net 30 mean, compute thecost for not taking the discount.
- Calculate NPV if your initial investment was 1000, year 1 expect 200, year 2 expect 400 and year 5 500. Should you invest? Why or why not?
- What is the balance sheet formula?
- What is the formula for income statement?
Advantages of Simplicity of Decision Making
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
You Can Also Place the Order at www.collegepaper.us/orders/ordernow or www.crucialessay.com/orders/ordernow