The Dean of Your College Is Considering Hiring Another Economics

question 14

Multiple Choice

The dean of your college is considering hiring another economics professor.If the additional revenue that the college can earn from employing the professor exceeds the additional cost, the college should

• A)do nothing
• B)continue to study the issue
• C)hire the professor
• D)stop offering economics classes
• E)not hire the professor and lay off a professor already on the faculty

Distinguish between technical analysis and fundamental analysis in stock valuation.

Grasp the concept of present value as it applies to stock valuation and investment decisions.

Understand the role and elements of a prospectus in the initial public offering process.

Comprehend the factors influencing stock pricing models and their limitations.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the accounting books but not yet cashed or cleared by the bank.

Automatic Transfer

A banking service that automatically moves funds from one account to another at scheduled times or under specific conditions.

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks outstanding, deposits in transit, and other discrepancies.

Check Register

A record kept by an individual or institution to track checks written, deposits made, and the current balance of a checking account.