Author Question: A firm has just ended the calendar year making a sale in the amount of 200,000 of merchandise ... (Read 119 times)

james9437 · **on:** Jul 10, 2018

A firm has just ended the calendar year making a sale in the amount of 200,000 of merchandise purchased during the year at a total cost of 150,500.

Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face is ________.
A) low profitability
B) insolvency
C) inability to receive credit
D) high leverage

Question 2

A proxy battle is the attempt by ________.

A) the creditors of a bankrupt corporation to seize assets of the corporation
B) the management to dismiss the board of directors for their incapability to manage the operations
C) a nonmanagement group to unseat the existing management and gain control of the firm
D) the employees to form trade unions to influence decisions on behalf of members