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NEW QUESTION: 1
The capital asset pricing model (CAPM) states that:
A. The expected rate of return on an investment is proportional to its beta
B. The expected risk premium on an investment is proportional to its beta
C. The expected rate of return on an investment depends on the risk-free rate and the market rate of return
Answer: B
NEW QUESTION: 2
Which of the following statements is true concerning the use of LIFO in a period of rising prices?
A. The use of LIFO will lead to a useful working capital number and inventory turnover
B. The use of LIFO will lead to lower cash flows
C. The debt-to-equity ratio will be higher than under FIFO
Answer: C
Explanation:
When FIFO is used, the cost of goods sold is lower, income is higher, and retained earnings is higher. This makes the equity LIFO higher; thus the debt-to-equity ratio under FIFO will be lower than under LIFO.
NEW QUESTION: 3
You need to participate in enterprise risk management and complete an HR-audit.
Which of the following is the best definition of an HR-audit in regard to risk management?
A. Identify the competency of employees in each areas of the organization
B. Identify the HR areas that may be out of compliance with legal requirements
C. Identify the total number of employees in the organization
D. Identify the total number of employees by years of employment in the organization and verify their experience, education, and skills
Answer: B
Explanation:
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 9780-470-43096-5. Chapter Four: Workforce Planning and Employment. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Business Management and Strategy
Objective: Strategic Management