Which of the following statements is CORRECT? a. Regression techniques cannot be used in situations where excess capacity or economies of scale exist. b. When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow. c. Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process. d. For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets. e. When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner.

When calculating the bountiful returns that retirees allegedly would glean from stock investments, privateers use rosy projections about a continually booming market. but when predicting bankruptcy for social security, they switch to pessimistic projections of a low-growth economy with abnormally low payments into the fund. in fact, far from going broke, social security produces enormous surpluses. from __ to americans paid more in social security taxes than were paid out in benefits. according to the congressional budget office, the social security trust fund will remain solvent until at least social security is the only federal program that produces about $150 billion yearly surplus, the only program that shows every sign of being selfsupporting and solvent for over thirty years to come yet is repeatedly described by its enemies as being in danger of insolvency?

Which type of investment offers both capital gains and interest income? a. property b. cds c. stocks d. bonds

Compare the sources of consumer credit 1. consumers use a prearranged loan using special checks 2. consumers use cards with no interest and non -revolving balances 3. consumers pay off debt and credit is automatically renewed 4. consumers take out a loan with a repayment date and have a specific purpose a. travel and entertainment credit b. revolving check credit c. closed-end credit d. revolving credit