In deciding whether to drop its electronics product line, a company's manager should ignore ________
A) the variable and fixed costs it could save by dropping the product line
B) the revenues it would lose from dropping the product line
C) the effect of dropping the electronics product line on the sales of its other products
D) the amount of unavoidable fixed costs
D
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On October 1, 2016, Vero Beach Financial lent Morgan Corporation $600,000, receiving in exchange a 9-month, 12% note receivable. Vero Beach Financial ends its fiscal year on December 31 and makes adjusting entries to accrue interest earned on all notes receivable. The interest earned on the note receivable from Morgan Corporation during 2017 will amount to
A. $13,500 B. $18,000 C. $44,500 D. $36,000
Steven Wong was an ace financial advisor. He placed millions of dollars on behalf of his clients into certain debentures of Tippett Holdings Ltd
He did not inform his clients that he received hundreds of thousands in commissions from Tippett for obtaining all this investment. On the other hand, all of his clients made money on their Tippett holdings. Can any of his clients sue Wong? A) No. They have not suffered any financial loss B) No. Wong has not given negligent professional advice C) No. Wong has not placed his own interests above those of his clients D) Yes. Wong has committed a breach of fiduciary duty E) Both A and B