Which of the Following Statements Is CORRECT

question 40

Multiple Choice

Which of the following statements is CORRECT?

• A) Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 3 years or longer.
• B) If firms use accelerated depreciation, they will write off assets slower than they would under straight-line depreciation, and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• C) If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• D) If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects' forecasted NPVs are normally higher than they would be if straight-line depreciation were required for tax purposes.
• E) Since depreciation is not a cash expense, and since cash flows and not accounting income are the relevant input, depreciation plays no role in capital budgeting.

Discuss the impact of disagreements among business partners on the operations and ultimate dissolution of a business.

Identify the legal basis for profit and capital distribution among business partners during dissolution.

Evaluate the consequences of lacking formal equity and investment agreements in partnerships.

Assess the importance of clear marketing strategies and territory assignments in partnership ventures.

---

Definitions:

Little Albert

A classic experiment in psychology conducted by John B. Watson and Rosalie Rayner demonstrating how emotional responses can be conditioned in humans.

UCS

An abbreviation commonly used in psychology for "Unconditioned Stimulus," which is a stimulus that naturally triggers a response without the need for prior conditioning.

Fear-Producing Stimulus

An object, event, or situation that induces a fear response in an individual.

"Little Albert" Study

An experiment conducted by John B. Watson and Rosalie Rayner that demonstrated classical conditioning in humans by showing how an infant named Albert became conditioned to fear a white rat.