What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?
a it shows that the owner expects financial risk and is eliminating it by making an insurance company liable.
b it shows that the owner is accepting financial risk by budgeting for it and paying for it regularly.
c it shows that the owner is willing to share ownership of the business to reduce financial risk.
d it shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. as a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

Which feature is a characteristic of a corporation?