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Unit 1 milestone Exam Questions And
Correct Answers 100% Verified.
Consider the P/E ratios of the following companies:
Company A: 7.4
Company B: 11.3
Company C: 14.8
Company D: 9.1
Among these four companies, Company C has the __________. - Answer✔highest relative value
By appropriately preparing a forecast budget, a company can avoid __________. -
Answer✔insolvency
Haley is expanding her tax preparation business and wants to reorganize it. She wants to better
protect her assets from any liabilities associated with the business, and she wants to pay a lower
tax rate on her business income. She also believes her business will benefit from oversight from
a board of directors. Which form of business structure would clearly meet Haley's needs? -
Answer✔Corporation
Capacity planning answers the question "__________" - Answer✔How can we be most
efficient?
Select the true statement about the concept of agency cost. - Answer✔An agency cost is one that
is incurred when an agent's actions deviate from the principal's interests.
Which of the following is true of ethics and its application to the business environment? -
Answer✔The ethical norms and values of a business can have a powerful influence on its
employees.
What is a question that should be asked about inventory when forecasting? - Answer✔What are
the current storage costs?
Under GAAP, how would the sale of company-owned land be accounted for on the statement of
cash flows? - Answer✔As an increase in cash flow from investment
If operating income is $155,000 and total revenue is $577,000, then the operating margin is
__________. - Answer✔26.80%
1|Page
Unit 1 milestone Exam Questions And
Correct Answers 100% Verified.
Consider the P/E ratios of the following companies:
Company A: 7.4
Company B: 11.3
Company C: 14.8
Company D: 9.1
Among these four companies, Company C has the __________. - Answer✔highest relative value
By appropriately preparing a forecast budget, a company can avoid __________. -
Answer✔insolvency
Haley is expanding her tax preparation business and wants to reorganize it. She wants to better
protect her assets from any liabilities associated with the business, and she wants to pay a lower
tax rate on her business income. She also believes her business will benefit from oversight from
a board of directors. Which form of business structure would clearly meet Haley's needs? -
Answer✔Corporation
Capacity planning answers the question "__________" - Answer✔How can we be most
efficient?
Select the true statement about the concept of agency cost. - Answer✔An agency cost is one that
is incurred when an agent's actions deviate from the principal's interests.
Which of the following is true of ethics and its application to the business environment? -
Answer✔The ethical norms and values of a business can have a powerful influence on its
employees.
What is a question that should be asked about inventory when forecasting? - Answer✔What are
the current storage costs?
Under GAAP, how would the sale of company-owned land be accounted for on the statement of
cash flows? - Answer✔As an increase in cash flow from investment
If operating income is $155,000 and total revenue is $577,000, then the operating margin is
__________. - Answer✔26.80%
1|Page
