Investors in growth oriented firms accept the nonpayment of dividends in order to retain earnings partially because they realize that issuing new equity would involve flotation costs that would ultimately lower earnings

Cancellation rights and subrogation provisions are miscellaneous provisions in insurance contracts.

a. true b. false

Which of the following will not help minimize the risk of a company losing a wrongful termination suit?

a. having company lawyers counsel the sales manager on affirmative action laws b. establish a paper trail of the employee's performance c. specifically spell out the reasons for the termination d. handle the process in a humanitarian manner e. offer attractive termination benefits package