Question 1

A co league claims that morality is usually perceived and interpreted differently by different people so there is no method to judge whether one decision is better than another. This is commonly referred to as

Options :

A : ethical relativity

B : moral philosophy

C : comparative ethics

D : moral relativism

Answer: D

Question 2

Harris Wholesale Grocery Company has gross sales per year of $7 million and grants credit terms to its customers of 2/5. net 15 As a result. 60% of customers pay on the discount date 20% pay on the net due date, and 20% pay on average 10 days after the due date Assuming that sales are uniform throughout the year and using a 360-day year In the calculation what is the approximate annual amount of discount that Hams customers are allowed to take?

Options :

A : $28,000

B : $84,000

C : $140, 000

D : $210,000

Answer: C

Question 3

Which one or the following costs Is a variable product cost?

Options :

A : Office rent in a temporary staffing company

B : Plant manager s salary for a computer chip manufacturer

C : Payroll taxes based on the hourly wages of plant personnel

D : Promotional materials distributed to raise brand awareness

Answer: C

Question 4

Which one of the following situations describes a secondary offering of stock by a company?

Options :

A : The company has an initial public offering of its stock and its investment bank needs to add mote shares to the initial public offering to meet excess demand by investors

B : After the lockup period of the initial public offering ends, the company 3 founders sell some of their shares to the public

C : The company repurchases shares of its stock in the open market, but it then later sells these shares in the open market

D : After completing its initial public offering, the company sells more new shares of its stock

Answer: B

Question 5

Southwest Supplies Inc. (SSI) is considering the following two projects with cash-flows discounted at SSI's weighted average cost of capital.

CMA-Strategic-Financial-Management-page49-image10

SSI can only afford to invest in one of the projects. Which statement would most likely explain why SSI would choose Project B over project A?

Options :

A : Project B results in a higher cumulative accounting income

B : Project B generates significantly more non-cash expenses

C : Project B cash-flows are relatively more certain

D : Project B cash-flows are to be received sooner

Answer: D

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