A Company That Continues to Have Strong Profit Performance During

question 101

Multiple Choice

A company that continues to have strong profit performance during an economic downturn when many other companies are suffering losses or failing should:

• A) See an increase in the yield of their bonds and the price of the bond increases
• B) See their bond rating maintained or actually increase
• C) See the demand for their bonds decrease and their yields decrease
• D) See the demand and price for their bonds decrease

Recognize the conditions under which anticipatory repudiation occurs and the options available to the aggrieved party.

Grasp the obligation of sellers to tender delivery and the implications for buyers in accepting or rejecting goods.

Distinguish between various types of contracts (shipment, destination) and the associated responsibilities of the parties involved.

Identify the consequences and procedural requirements for rejection, revocation of acceptance, and cure options within contracts.

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Definitions:

Causal Forecasting

A forecasting method that assumes the demand in future periods will be influenced by identifiable factors and uses statistical models to predict outcomes.

Weighted Moving Average

A calculation that averages a series of values while giving different weights to different values, often used in financial analysis to smooth data.

Simple Moving Average

A method used in technical analysis to smooth out price data by creating a constantly updated average price over a specific period of time.

Focus Forecasting

A technique that uses historical data to predict future demand by trying various forecasting methods and selecting the one that proves most accurate.