Which one of the following is NOT an advantage of using ROE as a goal?
A) ROE is highly correlated with shareholder wealth maximization.
B) ROE and the DuPont analysis allow management to break down the performance and identify areas of strengths and weaknesses.
C) ROE does not consider risk.
D) All of the above are advantages of using ROE as a goal.
Answer: C) ROE does not consider risk.
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An email from Amazon.com offers free shipping on your next purchase of more than $35. This is an example of ________.
A) sales promotion B) Public relations C) Viral Marketing D) stealth marketing E) personal selling
Which of the following statements related to loss carrybacks and carryforwards is correct?
a. the benefit due to a loss carryforward is reported only in the loss year b. the benefit due to a loss carryforward can be reported in both the loss year and future years c. the benefit due to a loss carryback is reported only in the 2nd year preceding the loss year d. the benefit due to a loss carryback can be reported in both the loss year and future years