Which of the following best defines incremental earnings?
A) cash flows arising from a particular investment decision
B) the amount by which a firm's earnings are expected to change as a result of an investment decision
C) the earnings arising from all projects that a company plans to undertake in a fixed time span
D) the net present value (NPV) of earnings that a firm is expected to receive as the result of an investment decision
Answer: B
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Which of the following statements regarding the insuring clause is NOT correct?
A) It is usually signed by the insured. B) It states to whom benefits should be paid. C) It is usually found on the first page of the policy. D) It sets forth the insurer's promise to pay benefits upon the insured's death."
In Reilly's law of retail gravitation, the point of indifference is _____
a. the customer's perceived similarity between two competing retailers b. the geographic breaking point at which shoppers are indifferent to shopping at either of two cities c. the limit of a city's trading area d. determined solely by the merchandising effectiveness of a city's retail operations