A disadvantage of entering global competition through a joint venture is:
A. That it may present political roadblocks
B. The partner's knowledge of local tastes and preferences may interfere with standardized operations
C. Your partner and you may disagree on which of you controls various aspects of the venture
D. It is a seldom used strategy, offering many unknowns
E. All of the above are disadvantages of joint ventures
C. Your partner and you may disagree on which of you controls various aspects of the venture
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PMI is the acronym for Private Mortgage Insurance often used by borrowers whose LTV (loan-to-value) ratio is less than 20 percent. Lenders must cease charging PMI when the LTV reaches
A) 22 percent. B) 27 percent. C) 29 percent. D) 35 percent.
The board of directors of Wilcox, Inc., has noted a 7% drop in the market price of its preferred stock and decides to purchase 100,000 shares of the stock for an amount below the redemption price of the stock. Under these circumstances, which of the following is a true statement?
A. The corporation will realize a taxable gain as a result of the transaction. B. The preferred stock so acquired must be retired and may not be held as treasury stock. C. The corporation may not acquire its own shares unless the articles of incorporation so provide. D. Such shares may be purchased by the corporation to the extent of unreserved and unrestricted retained earnings.