The Aventura Country Club purchased a new lawn mower for $10,600. A down payment of $2,500 was made and the balance financed with monthly payments of $415.13 for 24 months. a. What is the amount of the finance charge on the loan? b. Use the APR Table 13-1 from your text to find what annual percentage rate was charged on the loan

Which of the following is the best way to prevent an agency problem between shareholders and managers?

A) Maintain a proportional relationship between a manager's bonus and the number of employees in the firm. B) Compensate managers to a significant degree with shares of stock in their firm. C) Reward managers if they keep costs below the budgeted amount. D) Pay managers a bonus if their division exceeds its targeted market share. E) Pay managers a bonus if their division exceeds its quarterly sales target.

Patents are amortized over a period of:

A) 20 years. B) 20 years or the expected useful life, whichever is less. C) 70 years plus the life of inventor, or the expected useful life, whichever is less. D) 70 years beyond the life of inventor.