The environmental Kuznets curve is a(n) _____ curve.
a) S-shaped
b) J-shaped
c) inverted J-shaped
d) inverted U-shaped
Answer: d) inverted U-shaped
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Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?
A) Product differentiation helps reduce the threat of new entry by forcing potential new entrants to absorb costs associated with overcoming incumbent firms' product-differentiation advantages. B) Product differentiation increases the threat of new entry by allowing potential new entrants to avoid costs associated with overcoming incumbent firms' product-differentiation advantages. C) Product differentiation has no impact on the threat of new entry. D) It is not possible to determine the impact of product differentiation on the threat of new entry.
On January 2, 2016, Rushmore, Inc. issued 8,000 bonds at $1,080 each. Each bond contains 40 stock warrants, each of which gives the owner the right to purchase one share of Rushmore $10 par value common stock at $50. The current selling price of common stock is $40 per share. Rushmore bonds without stock warrants are currently selling for $1,025
Required: 1. Prepare the journal entry to record the sale of the bonds if the warrants are nondetachable. 2. Prepare the journal entry to record the sale of the bonds if the warrants are detachable using the incremental method. 3. Prepare the journal entry to record the exercise of all warrants on October 5, 2020, when the market price of the stock was $60, using the incremental method. What will be an ideal response?