Studies of human decision making have found that people are reluctant to change their minds.

Which of the following is the best definition of arbitrage pricing theory (APT) ?

A) A theory showing that the expected return on any risky asset is a linear combination of various factors.
B) A risk that affects at most a small number of assets. Also called unique or asset-specific risks.
C) A risk that influences a large number of assets. Also called market risk.
D) Positively sloped straight line displaying the relationship between expected return and beta.
E) Principle stating that spreading an investment across a number of assets eliminates some, but not all, of the risk.

Functional managers are primarily involved in using their special technical expertise to advise and support line workers.

The conversion of a LIFO inventory to approximate the inventory at FIFO is accomplished through application of which one of the following formulas?

A) FIFO inventory = LIFO inventory × LIFO reserve
B) FIFO inventory = LIFO inventory ÷ LIFO reserve
C) FIFO inventory = LIFO inventory - LIFO reserve
D) FIFO inventory = LIFO inventory + LIFO reserve

A company's fiscal year must correspond with the calendar year.

Identify the correct statement about sales training.

A) Knowledge of selling is primarily developed through experience.
B) Most salespeople only go through about two weeks of sales training during their entire selling career.
C) Sales knowledge gained from sales training typically does not benefit the salesperson.
D) The only reason companies engage in sales training is to abide by federal government laws that require equity in positioning.
E) A salesperson has to undergo sales training only at the beginning of a sales career.