Which of the Following Statements About the Control and Strategic

question 3

Multiple Choice

Which of the following statements about the control and strategic criteria used to decide between using independent agents or an internal sales force is true?

• A) Independent agents are especially good at cultivating and servicing new accounts
• B) Customer loyalty to the independent agent can make it difficult to replace an agent with an internal sales force
• C) When sales are below manufacturer's expectations, the manufacturer immediately knows that the blame lies with the independent agent
• D) It is as easy to monitor an independent agent as it is to monitor an internal sales force
• E) Independent agents are viewed as more effective over the long-run than internal sales forces

Demonstrate knowledge of the equity method for accounting for investments and its application when significant influence is exerted over the investee.

Recognize the different accounting methods for short-term and long-term investments and their reporting requirements under both GAAP and IFRS.

Calculate and journalize the gains, losses, dividends received, and interest income from investments.

Understand the rationale behind companies' investment decisions, including for excess cash management or strategic reasons.

---

Definitions:

Time Value Of Money

The principle that money possessed now holds greater value than the same quantity anticipated in the future, given its potential to earn more.

Capital Investment Analysis

The process of evaluating and comparing potential investments or expenses to determine their profitability and financial impact on a business.

Employee Morale

refers to the overall attitude, satisfaction, and outlook that employees have towards their work and workplace environment.

Product Quality

The degree to which a product or service meets the customer's expectations and complies with standards.