What does the Moody's Analytics model use as equivalent to holding a call option on the assets of the firm?
A. The value of equity in a firm.
B. Total liabilities of a firm.
C. Net income of a firm.
D. Dividend yield of investments.
E. Short-term debt liabilities of a firm.
Ans: A. The value of equity in a firm.
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Boyle, as a promoter of Delaney Corp., signed a 9-month contract with Austin, a CPA. Prior to the incorporation, Austin rendered accounting services pursuant to the contract. After rendering accounting services for an additional period of 6 months pursuant to the contract, Austin was discharged without cause by the board of directors of Delaney. Absent agreements to the contrary, who will be liable to Austin for breach of contract?
A. Both Boyle and Delaney. B. Boyle only. C. Delaney only. D. Neither Boyle nor Delaney.
Mini-Case Question. Which of the four types of brand names does OrganicDrinks best represent?
A) a functional name B) an invented name C) a morpheme name D) an evocative name E) a founder name