1. In a "cost-plus-effort" reimbursement contract:
a. Risk is assumed by the owner; monitoring is either low risk or done by the owne.r
b. Risk is assumed by the contractor within limits; less monitoring is done by the owner.
c. Risk is assumed by the contractor; the owner needs (and is given) stable specifications.
d. Risk is assumed by the owner; monitoring is done by the owner who knows the tasks in detail.
e. None of the above.
2. Which of the following statements is true of exporting?
a. It allows for lesser economies of scale across countries.
b. it is the least risky of the modes of international market entry
c. it involves very high investments.
d. it works well when high differentiation of a product is required.
3. Public Broadcasting reads the names of local contributors on the air. This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller
B. reduce; larger
C. reduce; smaller
D. increase; larger
4. Last year Abby charged $5,600,000 Depreciation on the Income Statement of Andrews. If early this year Abby sold all its depreicable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal):
A. Just impact the Balance Sheet
B. Increase Net Cash from operations
C. Decrease Net Cash from operations on the Cash Flow Statement
D. No impact on Net Cash from operations