You Are Trying to Evaluate Two Bond Issues

question 20

Essay

You are trying to evaluate two bond issues. One bond issue is rated "A" by the DBRS; the other is rated "B." How important are the bond ratings issued by the DBRS and CBRS? Based on your answer, would you purchase the "A" bond or the "B" bond?

Explain the liability of agents for contracts entered into on behalf of non-existent or undisclosed principals.

Evaluate the responsibilities and obligations of principals and agents in hiring and supervising employees to prevent tortious acts.

Discuss the consequences of misrepresentation by agents in making contracts.

Identify the legal outcomes in scenarios involving agents conducting activities that endanger third parties or involve abnormally dangerous activities.

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Definitions:

Absorption Costing

Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Manufacturing Costs

Expenditures that are directly tied to the production of goods, including raw materials, labor, and overhead expenses.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Tax Reporting

The process of filing income, sales, and other tax returns accurately and timely to comply with governmental regulations.