Which of the Following Would Be Most Likely to Occur

question 73

Multiple Choice

Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales, other operating costs, and tax rates are not affected, and assume that the same depreciation method is used for tax and stockholder reporting purposes.

• A) Companies' reported net incomes would decline.
• B) Companies' net operating profits after taxes (NOPAT)would decline.
• C) Companies' physical stocks of fixed assets would increase.
• D) Companies' net cash flows would increase.
• E) Companies' cash positions would decline.

Recognize the impact of transformational leadership on team and organizational effectiveness.

Understand the importance and processes of pretesting and posttesting in advertising copy.

Differentiate between various types of advertising agencies and their services.

Recognize the distinctions between sales promotions tools such as coupons, deals, contests, and sweepstakes.

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Definitions:

Agency Relationship

A legal and fiduciary relationship between two parties, where one, the agent, is authorized to act on behalf of the other, the principal, in business transactions.

Liability

A legal obligation or responsibility to settle a debt or make good on a promise or contract.

Third Parties

Individuals or entities that are not directly involved in a legal agreement or transaction but may be affected by it.

Actual Notice

Notice of agency termination that is given by directly informing third parties, either orally or in writing.