According to the "endowment effect:"

A) people are willing to pay more for things they don't own than they would have to receive to give up something they already have.
B) people feel gains and losses with equal intensity.
C) people assign higher values to things they own than things they don't.
D) the intensity of feelings from gains and losses depends on how much wealth one possesses.

If one company owns more than 50% of the common stock of another company

A) a partnership exists
B) a parent-subsidiary relationship exists
C) the company whose stock is owned must be liquidated
D) the fair value method should be used to account for the investment

The Additional Paid-In Capital account is reported on the balance sheet at the

A) current market value of the stock minus par value.
B) historical sales price of the stock minus the par value.
C) net realizable value of the stock minus par value.
D) discounted present value of the future dividends minus par value.

A Toronto firm has a times interest earned ratio of 2.7 times. This means:

A) The firm generated enough cash to cover its interest expense 2.7 times.
B) The firm has sufficient EBIT to cover its interest expense 2.7 times.
C) The interest expense of this firm exceeded earnings before taxes by 2.7 times.
D) The net income of this firm is sufficient to cover its interest expense 2.7 times.
E) The firm earned $1 in EBIT for every $2.70 it paid out in interest.

__________ refer to one-time activities that have clear beginning and end points.

A) Rules
B) Procedures
C) Goals
D) Budgets
E) Projects

Including a self-appraisal component in the performance appraisal process encourages employees to reflect on the performance of peers