Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

10 years
8 years
9 years
7 eyars

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Engineering Economics
Liquidity ratios are used:

To compare short term obligations to short-term resources available to meet these obligations
All of these
To measure a firm’s ability to meet short-cut obligations
To obtain much insight into the present cash solvency of the firm and the firm

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Engineering Economics
In case of bankruptcy of a partnership,

The partners nay sell stock to generate additional capital
The partners are not liable for the liabilities of the partnership
The partners personal assets are attached to the debt of the partnership
The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

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Engineering Economics
Which is true about corporation?

The stock holders of the corporation are only liable to the extent of their investments.
The minimum number of incorporators to start a corporation is three.
It is worse type of business organization.
Its life is dependent on the lives of the incorporators.

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