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As Part of a Larger Business Plan,Ronald and Margaret Devised

question 53

Multiple Choice

As part of a larger business plan,Ronald and Margaret devised an arrangement that would involve the shipment of widgets to the island of Abuc in the Caribbean.They are concerned,however,that their plan might violate the Trading with Enemy Islands Act,which prohibits the export of goods to certain Caribbean nations.Ronald and Margaret nevertheless want to immediately draft a document that sets up a structure for the shipment of widgets to Abuc,but that will not expose them to liability if,after seeking government approval for their plan,they learn that widgets cannot legally be sent to Abuc.As a matter of risk management,which of the following statements provides the best advice? Ronald and Margaret should insert

Distinguish between households and firms in terms of supply and demand in the capital market.

Recognize the role and impact of retained earnings on corporate investment and shareholder value.

Understand the importance of innovation and risk in earning profits within competitive markets.

Grasp the concept of financial intermediaries and their role in the capital allocation process.

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Marketing campaigns and advertisements specifically designed for delivery and viewing on mobile devices such as smartphones and tablets.