Question 12

A good value proposition identifies a market problem, offers a solution, and provides a basis for trust. What is the missing step?

articulates points of distinction from other solutions

describes the pricing schema

fully defines the promotion strategy

Question 13

Firm X increases inventory in anticipation of a supply chain disruption during the next reporting period. What effect does this have on assets in the current reporting period?

increases total assets if they use debt to pay for it

increases total assets if they use cash to pay for it

Decreases total assets if they use debt to pay for it

Question 14

Assets are worth $50 million and owner's equity is $20 million. Debt is...

$30 million

$50 million

$70 million

Question 15

A decrease in depreciation expense will have what impact on net income in the current reporting period?

Net income decrease

Net income increases

Net income is unaffected

Question 16

Firm X increases inventory in anticipation of a supply chain disruption during the next reporting period. What effect does this have on cash flow in current reporting period?

Decrease cash balances

Cash balances is unaffected

Increases cash balances

Question 17

Firm Y issues new debt in order to finance the acquisition of a new piece of equipment. What effect does this have on the cash flow in the current reporting period?

Overall cash balance is unaffected

Cash balances increase

Cash balances decrease