Firms That Believe They Can Make Decisions Unilaterally,without Taking into Consideration

question 29

Multiple Choice

Firms that believe they can make decisions unilaterally,without taking into consideration their impact on others are:

• A) Interactive companies.
• B) Proactive companies.
• C) Reactive companies.
• D) Inactive companies.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with predetermined dividend payments.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported.

Income Taxes Payable

This liability account shows the amount of income taxes owed to the government but not yet paid by a company.