1) Which of the following are examples of diversifiable risk?
I. An earthquake damages Oakland, California.
II. The federal government imposes an additional $1,000 fee on all business entities.
III. Employment taxes increase nationally.
IV. Toymakers are required to improve their safety standards.
A.I and III only
B.II and IV only
C.II and III only
D.I and IV only
E.I, III, and IV only
F.None of the above
2) Selected financial data for Link, Inc. follows: ($ in thousands)
Assume a 365-day year for your calculations. The inventory turnover, based on cost of
goods sold, at the end of 2012 is:
A.5.2
B.24.3
C.28.8
D.35.7
E.None of the above