Related to long-term liabilities, reading the notes to the financial statements is important because they contain

A) the characteristics of the long-term debt
B) the market rate of interest for the long-term debt
C) the market value of the long-term debt
D) the amount of debt converted into common stock

A shift in the sales mix from low-margin items to high-margin items will decrease total profits even though total sales increase.

Which of the following is not a potential consequence of a criminal violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) ?

A) Forfeiture of property,regardless of how it was obtained
B) Substantial fines
C) Imprisonment
D) Forfeiture of interest gained in any enterprise as a result of a violation

Hank, a citrus grove manager, wants to know how to avoid groupthink. What advice should you give?

A) Decrease the size of the group
B) Have someone play the devil's advocate
C) Make all key decisions yourself
D) Make sure everyone likes one another and gets along
E) Avoid conflict

Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price.

Which of the following was NOT found in the research on leadership situations?

A) The situation directly influences a leader's behavior.
B) The situation moderates the effects of leader behavior on outcomes.
C) The situation directly affects mediators for effects of leader behavior.
D) The situation has little effect on leader behavior.

Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $49,700 for Division A. Division B had a contribution margin ratio of 20% and its sales were $296,000. Net operating income for the company was $33,800 and traceable fixed expenses were $56,100. Corbel Corporation's common fixed expenses were:

A) $19,000
B) $56,100
C) $75,100
D) $108,900

Interventions to change thoughts, beliefs, and feelings states usually do not include

A) Expanding social networks
B) Visualization and cognitive imagery
C) Cognitive self-instruction
D) Cognitive restructuring

Ryan's Auto Parts has 200,000 shares of stock outstanding with a par value of $1 per share and a market value of $10 a share. The company has retained earnings of $86,000 and paid in surplus of $285,000. The company just announced a 2-for-5 reverse stock split. What will the par value per share be after the split?

A) $0.20
B) $0.40
C) $1.00
D) $2.50
E) $5.00