Gnome Company is deciding whether to continue to manufacture a component or to buy the component from a supplier. Which of the following is relevant to this decision?
A) the potential uses of the facilities that are currently used to manufacture the component
B) the insurance on the manufacturing facility that will continue regardless of the decision
C) fixed costs that do not differ between the alternatives
D) the cost of the equipment that is currently being used to manufacture the component
A
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Which of the following statements is FALSE?
A. Bond agreements often contain covenants that restrict the ability of management to pay dividends B. The stronger the covenants in the bond contract, the less likely an issuer will default on the bond and so the lower the interest rate investors will require to buy the bond C. If a bond issuer fails to live up to any covenant, the issuer goes into bankruptcy immediately D. Covenants are restrictive clauses in a bond contract that limit the issuer from taking actions that may undercut its ability to repay the bonds
How do effective business people view persuasion?
A) As a way to manipulate the audience B) As a negative force for the marketplace C) As a way to increase profit D) As a way to align the audiences interest with the organizations E) As a positive force in the marketplace