Overview
Chapter 11:
Managing the Resources
Money and People
Overview
1. Net profit (or loss) = variable costs – total expenses.
Ans: False Page: 279
2. The difference between book value and going concern value is called goodwill.
Ans: True Page: 279
3. Cash revenues can also be referred to as “cash out”.
Ans: False Page: 285
4. According to the time value of money approach, it is better to receive a dollar today than it is to receive a dollar any time in the future.
Ans: True Page: 288
5. If the IRR of a potential investment is lesser than the required rate of return, the investment should be undertaken.
Ans: False Page: 289
6. Fortunately, taxes do not affect cash flow because they are deposited into separate accounts and dispersed later.
Ans: False Page: 289
7. The degree to which new ideas from all sources are welcomed and responded to promptly and appropriately is known as stimuli.
Ans: False Page: 292
8. A good manager never fires an employee.
Ans: False Page: 295
9. Over-disclosing is far better than restricting information.
Ans: True Page: 299
10. You cannot use a separation agreement when someone leaves the company voluntarily.
Ans: False Page: 300
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