Compared to entrepreneurs, salaried employees face no risk in their ability to earn a living and generate wealth
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: Entrepreneurs face the risk of a business not earning profit, but salaried employees are at risk of losing their job due to outsourcing, economic conditions, and other factors.
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Which of the following statements about the extra expense coverage form is (are) true?
I. It provides coverage for the increased cost that must be paid to continue operations during a period of restoration. II. It provides coverage for lost business income if a key customer or key supplier experiences a loss. A) I only B) II only C) both I and II D) neither I nor II
Assume that you own 2500 shares of Omicron stock and that Omicron uses the entire $50 million to pay a special dividend. Suppose you are unhappy with Omicron's decision and would prefer that Omicron used the excess cash to repurchase shares
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 9% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. The number of shares that you would have to buy in order to undo the special cash dividend that Omicron paid is closest to ________ shares. A) 225.00 B) 337.50 C) 562.50 D) 281.25