Why Is It Preferable for Risk Management to Use a Shelf

question 56

Multiple Choice

Why is it preferable for risk management to use a shelf company as the vehicle for taking prompt advantage of a valuable business opportunity?

• A) Outsiders retain liability if the corporation fails to come into existence.
• B) It facilitates direct entrance into contractual obligations by the corporation.
• C) It facilitates the ability of promoters to sign in a personal capacity.
• D) Outsiders are restricted from relying on the apparent authority of agents.

Grasp the concept of geographic pricing and its application in business markets.

Recognize the evolving role of personal selling in modern marketing strategies.

Understand the implications of non-price competition strategies on market positioning.

Identify and evaluate different pricing strategies and their impact on consumer perception and demand.

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Definitions:

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories like current, long-term, property, plant, and equipment, to provide more detailed information.

Current Ratio

It's a financial ratio that calculates whether a corporation can cover its obligations that need to be paid within one year, by dividing the current assets by the current liabilities.

Plant Assets

Tangible assets that are used in the operations of a business and are not intended for resale, including buildings, machinery, and equipment.

Natural Business Year

The fiscal year that ends when a business's activities have reached the lowest point in its annual operating cycle, theoretically the most optimal time for financial reporting.