There are those that believe that the analysis of financial statements has limitations. Which of the statements below would qualify as a limitation of financial statement analysis?
A) Ratio analysis requires the analyst to evaluate a firm's performance over too many years to be of any value.
B) Proper ratio analysis requires the analyst to rely upon audited financial statements, which can be easily manipulated.
C) Thorough ratio analysis requires the analyst to refer to benchmarking, which is very easy to misinterpret.
D) Ratio analysis requires the analyst to utilize accounting data that is based on historical costs instead of current market values.
Answer: D) Ratio analysis requires the analyst to utilize accounting data that is based on historical costs instead of current market values.
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When referring to "luck" and an entrepreneur, which of the following statements is an appropriate saying?
A. Always wait for luck to happen B. Luck happens when preparation meets opportunity C. Luck happens to everyone D. Luck is the key to entrepreneurship
Kyle goes to a used-car showroom to buy a sedan. He signs an agreement with the store that bears the name of the car, price, and other details. This is an example of a(n) ________ contract
A) unilateral B) implied-in-law C) implied-in-fact D) express