An Automatic Payment Made to Managers If Their Firm Gets

question 12

Multiple Choice

An automatic payment made to managers if their firm gets taken over is referred to as:

• A)Supermajority Rules
• B)A Golden Parachute
• C)Staggered Boards
• D)Greenmail
• E)A Soft Landing

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Definitions:

Credit to Cash

An accounting entry that indicates a decrease in an asset account, specifically reducing cash available.

Freight In

The cost associated with transporting goods into a warehouse or to the buyer, which is often included in the inventory cost of those goods.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Cost of Goods Sold

The immediate expenditures associated with making the goods a company sells.