Chapter 2 Textbook Solutions QUESTIONS 3. Why is EBIT an important line item in the income statement? What does EBIT show us? ANSWER Earnings before interest and taxes (EBIT) is the lowest line on the income statement that isn ’t affected by the firm ’s method of financing (the relative amounts of debt and equity used). It is important because it allows an evaluation of physical business operations separate from the influence of financing decisions. It is therefore often called operating income
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ANSWERS TO AICPA QUESTIONS CHAPTER 10 INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 1. (a) Computer software is covered under the general copyright laws and is therefore usually copyrightable as an expression of ideas. Answer (b) is incorrect because copyrights in general do not need a copyright notice for works published after March 1‚ 1989. Answer (c) is incorrect because a recent court ruled that programs in both source codes‚ which are human readable‚ and in machine readable object
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1984 Reading Questions and “Writing” prompts Read each of the passages during class and answer the following numbered questions. What you do not finish will be homework. The questions that are not numbered will be used for discussion as an entire class. For each “Writing‚” record your response in the designated section of your notebook. Part One: I (p.1-20) 1. This society shows everything as thoroughly manipulated as possible. In the first sentence‚ what strikes you as wrong? In
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Chapter 14—Business Presentations MULTIPLE CHOICE 1. What is the least accurate statement about oral presentations? a. Only employees at upper levels find it necessary give persuasive oral presentations. b. Many future business people don’t take opportunities in college to develop speaking skills. c. A recent study shows that the No. 1 predictor of success and upward mobility is how much you enjoy public speaking and how effective you are at it. d. Speaking skills are useful at every career
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Cruise Lines borrows $3 million and issues a six month‚ 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31‚ the end of the reporting period. (Enter your answers in dollars not in millions. Do not round intermediate calculations. Omit the "$" sign in your response.) Date Nov. 1 General Journal Cash Notes payable Debit 3‚000‚000 Credit 3‚000‚000 30‚000 30‚000 Dec. 31 Interest expense Interest payable
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Chapter 10 Starting a business Chapter 10 | Starting a business 1. 2. 3. 4. 5. 6. Preparation Selecting a business structure Licences and registration Renting or buying the premises Franchising Opening for business Preparation Chapter 10 Starting a business Preparation • Before a person starts trading‚ they should: – do some research‚ – protect the IP‚ – prepare a plan‚ – raise some money‚ and – take out insurance. Selecting a business structure Chapter 10 Starting a business Business
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Chapter 11 - Resource Requirements Student: ___________________________________________________________________________ 1. Whenever possible‚ effective entrepreneurs seek to own the resources they need. True False 2. One advantage of owning resources during the startup is that it puts the team in a better position to commit and decommit quickly. True False 3. Entrepreneurs in high-potential startups seek to have not only enough committed resources for the task at hand but also a cushion
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Chapter 8: Hypothesis Testing: 8.1 Review and Preview: The two main activities of inferential statistics are using sample data to (1) estimate a population parameter (such as estimating a population parameter with a confidence interval)‚ and (2) test a hypothesis or claim about a population parameter. Hypothesis: a claim or statement about a property of a population Hypothesis test/test of significance: a procedure for testing a claim about a property of a population Population proportion
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Chapter 8 Strategic Management ANNOTATED OUTLINE 1. INTRODUCTION Effective managers recognize the role that strategic management plays in their organization’s performance. Throughout this chapter‚ students discover that good strategies can lead to high organizational performance. 2. THE IMPORTANCE OF STRATEGIC MANAGEMENT Managers must carefully consider their organization’s internal and external environments as they develop strategic plans. They should have a systematic means of analyzing
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Chapter 8 The Money Markets 8.1 Multiple Choice 1) Activity in money markets increased significantly in the late 1970s and early 1980s because A) of rising short-term interest rates. B) of regulations that limited what banks could pay for deposits. C) of both (A) and (B) of the above. D) of neither (A) nor (B) of the above. Answer: C 2) Money market securities are A) short-term. B) low risk. C) very liquid. D) all of the above. E) only (A) and (B) of the above. Answer: D 3) Money market instruments
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