Retail Specialties Just Announced That Its Chief Operating Officer Is

question 49

Multiple Choice

Retail Specialties just announced that its Chief Operating Officer is retiring at the end of this month. This announcement will cause the firm's stock price to:

• A)increase.
• B)either increase or remain constant.
• C)remain constant.
• D)decrease.
• E)either increase, decrease, or remain constant.

---

Definitions:

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies covering various risks to a business.

Financing Activities

Transactions and events where cash is raised from or repaid to investors and creditors, such as issuing equity or borrowing.

Company's Stock

Equity securities representing ownership interests in a corporation, giving shareholders a claim on its earnings and assets.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.