Which of the following would be considered a business announcement?
a. a mass email informing customers that the company is moving to a new location
b. a notice that the office Christmas party will be held in the conference room
c. a statement that the company is changing its dress code
d. All of the above
Ans: d. All of the above
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Which of the following methods will provide a correct analysis for capital budgeting purposes?
A) discounting real cash flows with nominal rates. B) discounting real cash flows with real rates. C) discounting nominal cash flows with real rates. D) all of the above methods will provide similar results.
Your firm, which specializes in complex electronic products, has grown rapidly and you are now incorporating. Even after incorporation, a large percentage of the stock will be held by the founders, including you. Your colleague recommends a large
corporate board made up exclusively of outsiders. She is very concerned about the sensationalized corporate scandals in recent years. Do you agree with her recommendation? Explain.