Which of the following is situation commonly drives a business valuation engagement?
A) hypothecation of assets
B) shareholder dispute
C) hedging a company's derivatives
D) determination of dividend payout
B
Explanation: B) Business valuations are most commonly driven by one of three situations-litigation, transactions, and tax matters.
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Which of the following is a prerequisite for the creation of an agency relationship?
A. Consideration must be given. B. The agent must have capacity. C. The principal must have capacity. D. The consideration must be in writing.
Self-insurance would not provide adequate protection in which of the following circumstances?
A) Unemployment insurance for a firm that rarely lays off employees. B) Damage to the company's own vehicles. C) Major ecological disasters resulting from oil spills. D) Revenue lost because of bad weather during the peak shopping season.