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NEW QUESTION: 1
A project manager complains that the vendor obtained through the procurement process did not meet the project's requirements The procurement department argues that the project manager did not provide adequate information when submitting the procurement documents What should the project manager do?
A. Negotiate with the vendor on how the requirements can be met
B. Escalate the problem to both the project sponsor and the procurement department director.
C. Compare the submitted procurement documents to the quality management plan requirements.
D. Determine if there is sufficient time and funds to terminate the contract and then conduct a new procurement process
Answer: A
NEW QUESTION: 2
The stand-alone risk of a project is measured by:
A. the project's impact on the uncertainty about the firm's future earnings.
B. the project's impact on the systematic risk of the firm's stock.
C. the variability of the project's projected returns.
D. the project's impact on the unsystematic risk of the firm's stock.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Standalone risk evaluates the risk of a project ignoring all portfolio aspects by looking at the variability of the project's projected returns.
NEW QUESTION: 3
Under normal circumstances, which of the following is a non-negotiable instrument?
A. a Bankers Acceptance
B. a Treasury Bill
C. a Medium Term Note
D. a Money Market Deposit
Answer: D
NEW QUESTION: 4
Lauren Jacobs, CFA, is an equity analyst for DF Investments. She is evaluating Iron Parts Inc. Iron Parts is a manufacturer of interior systems and components for automobiles. The company is the world's second largest original equipment auto parts supplier, with a market capitalization of $1.8 billion. Based on Iron Parts's low price-to-book value ratio of 0.9* and low price-to-sales ratio of 0.15x, Jacobs believes the stock could be an interesting investment. However, she wants to review the disclosures found in the company's financial footnotes. In particular, Jacobs is concerned about Iron Parts's defined benefit pension plan. The following information for 2007 and 2008 is provided.
Iron Parts has adopted SFAS No. 158, Employers' Accounting for Defined Benefit Pensions and Other Postretirement Plans.
Jacobs wants to fully understand the impact of changing pension assumptions on Iron Parts's balance sheet and income statement. In addition, she would like to compute Iron Parts's economic pension expense.
As of December 31, 2008, the funded status of Iron Parts's pension plan was:
A. $183 million overfunded.
B. $175 million underfunded.
C. $240 million underfunded.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Funded status equals fair value of plan assets minus PBO (395 - 635 = -240). (Study Session 6, LOS
22.c,f)
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