Which of the following statements about bond rating agencies is true?
A) Bonds are rated by an agency of the federal government.
B) Bonds rated AAA are guaranteed by the company that issues the rating.
C) During the financial crisis of 2007-2009 it became clear that rating agencies severely underestimated the risks of some issues.
D) Bond rating agencies are paid by investors and receive no compensation from the bonds' issuer.
Answer: C
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Which of these is the lawyer constraint for this scenario?
Zevon Enterprises provides services for clients worldwide and to protect all parties to this course as well as Zevon, we shall refer to those services as X1, X2, and X3. Each of these services has its own special mix of needs for the resources the company has at its disposal. The X1 product requires three lawyers, seven guns, and $6,000; the X2 product requires two lawyers, five guns, and $4,000; and the X3 product requires four lawyers, six guns, and $7,000. Zevon has access to 5,000 lawyers, 10,000 guns, and $15,000,000. For ease of conversation, Zevon employees usually speak about dollars as "per thousand" so one of them asking for $7 means that they really need $7,000. Zevon's demand is variable depending on what they charge for it. For example, the X1 product's demand is 200 - 2.25p1. The demand for X2 is 300 - 3p2, and the demand for X3 is 400 - 3.5p3. The per unit profit forX1 through X3 can be calculated by subtracting the per unit cost from the sales price, so for X1, the profit is p1 - 2.25, for X2 the profit is p2 - 3, and for X3 the profit is p3 - 3.5. A) 7X1 + 5X2 + 6X3 ? 10,000 B) 3X1 + 2X2 + 4X3 ? 5,000 C) 6X1 + 4X2 + 7X3 ? 15,000 D) X1 = 200 - 2.25p1
Types of stress include:
A) Negative stress B) Positive stress C) Workplace stress D) All of the above E) None of the above