BUSI 320 Read & Interact Chapter 1 Assignment solutions complete answers

BUSI 320 Read & Interact Chapter 1 Assignment solutions complete answers 

 

What did the Dodd-Frank Act establish to oversee the insurance industry and streamline state-based insurance regulation?

 

       markets are the meeting place for people, corporations, and institutions that either need money or have money to lend or invest. 

 

The more frequent daily activities of financial management include: 

 

Institutional investors are influential because of their ability to replace poorly performing boards of directors.

 

Which of the following is not a phenomenon that has influenced the importance of internationalization by mangers 

 

LLCs can be taxed as sole proprietorships, partnerships, corporations, or S corporations, depending upon what?

 

There are four primary forms of organizations.

 

The goal of shareholders wealth maximization can be consistent with the concern of social responsibility if management adopts policies that        values in the market.

 

Management, being representative of all the owners, is in the agency position of making decisions that are in the best interest of the firm’s: 

 

The S corporation designation can apply to domestic corporations with up to how many stockholders?

 

Which of the following is not a motivation for corporate managers to follow the goal of maximizing shareholder wealth 

 

The B2B model often fails to help companies lower the cost of managing inventory.

 

Which of the following entities were not responsible for the corporate fraud that led to the Sarbanes-Oxley Act 

 

The primary group responsible for recognizing poor performance and initiating restructuring in corporations is the board of directors.

 

Directors serve in a     capacity for the shareholders and may be liable for the mismanagement of the firm.

 

Capital markets deal with securities that

 

The Sarbanes-Oxley Act was passed by Congress to control

 

E-commerce impacts financial management because it affects the pattern and speed with which ______ flow(s) through the company.

 

The restructuring of companies like Hewlett-Packard and McGraw Hill were a direct result of _____ affecting change, by influencing the boards of directors, in response to their concerns related to maximizing the value of their investments.

 

The major focus of the Sarbanes-Oxley Act is to ensure the accuracy of the

 

Management of shareholders' interests is ultimately the responsibility of

 

Double taxation can be circumvented through the formation of an S corporation.

 

Firms in which shareholder wealth maximization is not the primary goal may be susceptible to poor stock price performance.

 

Participants in the corporate financial markets include:

 

As the corporate financial manager has an increasing number of external impacts to consider, future financial managers will need to understand international capital flows, computerized electronic funds transfer systems, foreign currency hedging strategies, and many other functions.

 

The primary organizational forms include:

 

Restructuring of a business can result in:

 

The stockholder of a corporation has ____ liability for the business debts and obligations.

 

Participants in public financial markets include:

 

The five-member board established by the Sarbanes-Oxley Act was given the responsibility for

 

Since institutional investors own a large percentage of shares in many corporations they may have the ability to vote large blocks of shares in order to:

 

______ markets are the meeting places for people, corporations, and institutions that either need money or have money to lend or invest.

 

An LLC provides the advantage of _____ for its owners.

 

The Dodd-Frank Act was passed by Congress to promote financial stability by improving:

 

General partners have ___ liability for the debts and obligations of the company.

 

The major drawback of a sole proprietorship?

 

Insider trading, using information that is not available to the public to make a profit,

 

Markets where securities have a life of more than one year are referred to as _____ markets.

 

Money market securities include all of the following except:

 

A legal entity that may sue or be sued, engage in contracts, and acquire property is known as a     .

 

Which of the following is true of a partnership?

 

Issues of corporate governance are problems related to which theory

 

The goal of shareholders wealth maximization can be consistent with the concern of social responsibility if management adopts ______ that maximize values in the market.

 

It is in the ________ market that prices of securities are continually changing as investors buy and sell securities based on their expectations of a corporation's prospects.

 

The focus of modern financial management is on:

 

The primary concern of the financial manager should be to:

 

The daily activities of financial management include:

 

True or false: the ultimate measure of performance of the firm is what the firm earns.

 

True or false: Articles of incorporation specify the rights and limitation of the entity

 

Corporations can raise capital through the issuance of which of the following?

 

A corporation relies on ______ markets to provide funds for short-term operations and for new plant and equipment.

 

In order for financial managers to make and apply decisions correctly they must understand economics in relation to which of the following?

 

Accounting provides financial data through the 

 

    capital is allocated to purchase real capital (long-term plant and equipment).

 

The growth of the global company has led to the growth of global fund raising as companies seek low-priced sources of funds through international     .

 

Profit maximization is the primary goal of the firm

 

1.
According to the text, if there is one talent essential to the financial manager it is the ability to ______.
 
 
2.
Agency theory states that management should make decisions that are in the best interest of the firm's:
 
 
3.
An aggressive firm utilizing short-term financing may be vulnerable to
 
 
4.
An aggressive firm utilizing short term financing may be vulnerable to
 
 
5.
An alternative to the systems approach for determining a firm's financial needs is the _____ method.
 
 
6.
As a rule, an aggressive, risk-orientated firm will use _______ financing.
 
 
7.
As a rule, during "tight money" periods:
 
 
8.
As a rule, interest rates on short term debt are _______ interest rates on long term debt.
 
 
9.
Assume current assets and current liabilities change at the same rate as sales. Accordingly, if sales increase by 15%
 
 
10.
Assume that current assets and current liabilities change at the same rate as changes in sales. Therefore, if sales increase by 10%, then
 
 
12.
Capital market securities include all of the following except
 
 
13.
Cash flow is determined by
 
 
14.
Cash payments may be necessary for all of the following except
 
 
15.
Cash receipts include
 
 
16.
Companies use ________ to provide funds for operations.
 
 
17.
Companies use _______ to provide funds for operations.
 
 
18.
A company anticipates monthly sales of $300,000 for the months of April, May, June, and July. Materials represent 50% of sales, and because of level production, material purchases will be equal for each month. Materials are paid for one month after the month purchased. Labor costs are $16,000 in April, $19,000 in May, $16,000 in June, and $21,000 in July. Fixed overhead is $12,000 per month. General and administrative expenses are $2,000 per month, interest expense of $2,500 is paid in May, and new equipment of $10,000 is also purchased in May. What are the company's total cash payments in May?
 
 
19.
A company anticipates monthly sales of $400,000 (i.e., per month in January, February, March, and April). Material cost of each month represent 55% of sales of that month and due to level production, material purchases will be equal for each month. Labor costs are expected to be $15,000 in January, $18,000 in February, $14,000 in March, and $19,000 in April. Fixed overhead is $10,000 per month. General and administrative expenses are $2,500 per month, an interest expense of $2,500 is paid in March, new equipment is purchased for $10,000 in February, and a divided of $3,000 is paid in March. The company total cash payments in March are
 
 
20.
A company has floor displays of merchandise that are maintained throughout the year. The inventory that makes up the floor displays is considered
 
 
21.
A company has forecasted sales of $50,000 in January, $40,000 in February, and $60,000 in March. All sales are on credit with 50% collected in the month of the sales, 30% collected in the month following the sale, and the remaining amount collected in the second month after the sale. After collections are made in the month of March, what will the accounts receivable balance be?
 
 
22.
A company has sales of $1,00,000, cost of goods sold at 60% of sales, general and administrative expenses of $250,000, interest expenses of $25,000, and a tax rate of 40%. The firm's earnings after taxes is ________. (round to the nearest dollar and include the dollar sign and commas, as appropriate.)
 
 
23.
A company has sales of $1,000,000, cost of goods sold at 60% of sales, general and administrative expenses of $250,000, interest expenses of $25,000, and a tax rate of 40%. The firm's earnings after tax is ________.
 
 
24.
A company should be able to estimate which of the following on the basis of its projected financial statements?
 
 
25.
A company that has the ability to increase sales with its current plant and equipment is said to be _________.
 
 
26.
A corporation is a ____ entity unto itself. Therefore, it may sue or be sued, engage in contracts, and acquire property.
 
 
30.
The difference between monthly cash receipts and payments is referred to as _______.
 
 
 
 
 
 
 
 
 
 
 

31.
The difference between total cash receipts and total cash payments is referred to as?
 
 
32.
During periods of inflation, FIFO inventory accounting
 
 
33.
Each year your company's inventory increases by $100,000 in advance of the busy season. This inventory increase is considered to be
 
 
34.
Economics provides a structure for decision making in which of the following areas:
 
 
35.
The field of finance is closely related to the field of:
 
 
36.
Financial capital is another name for
 
 
37.
Financial forecasting is essential to the strategic ____ of the firm.
 
 
38.
A financial manager's functions must be carried out while also balancing:
 
 
39.
Financial managers must know how to interpret a company's financial statements in order to
 
 
40.
A firm anticipates a 30% growth in sales this coming year. Last year the firm had the following figures expressed as a percentage of sales: cash at 10%, accounts receivable at 25%, and inventory at 20%. Using the percentage-of-sales forecasting method, what percentage growth in current liabilities is needed to sustain the growth in sales?
 
 
41.
A firm anticipates cash receipts for February of $20,000 and for March of $30,000. Cash payments are expected to be $5,000 in February and $7,000 in March. The cash balance at the beginning of February was $6,000, which is the level the fir, wishes to maintain. At the beginning of February, the firm has a $21,000 loan balance on a line of credit with a local bank. Based on the cash budget, how much can the firm repay in February and March?
 
 
42.
A firm determines that sales will rise from $500,000 to $750,000 next year. The relationship of variable assets to sales is 50% and the relationship of variable liabilities to sales is 20%. The firm has a 10% profit margin and a divided payout ratio of 30%. What is the level of new funds required?
 
 
43.
The firm has projected sales of $30,000 in June, $25,000 in July, and $20,000 in August, 20% of sales are collected in the month of the sales and 80% are collected in the month following the sale. What are cash receipts in August?
 
 
44.
A firm has total receipts of $16,000, $20,000, & $18,000, and total payments of $12,000, $15,000, & $12,5000, in January, February, & March, respectively. The firm's net cash flow for January is ________. (round to the nearest dollar and include the dollar sign and commas, as appropriate.)
 
 
45.
A firm may go to the markets to raise financial capital by:
 
 
46.
A firm operating at full capacity will require a _____ level of new funds than a firm operating at less than full capacity.
 
 
47.
The firm projects sales at 500,000 units and requires an ending inventory of 25,000 units. If the firm's beginning inventory is 50,000 units, what is the firm's production requirement for the period?
 
 
 
 
 
 
 
 
 

48.
A firm sells 500,000 widgets at $40 each, the cost of the widgets is $25 each, expected general and administrative expenses are 20% of sales, the firm has $2,000,000 of debt at a rate of 5%, and taxes are 35%. Calculate the firm's earnings after taxes?
 
 
49.
A firm's operating profit is $50,000, interest expense is $4,000, the tax rate is 35%, and common stock dividends are $2,500. Calculate the firm's earnings after taxes:
 
 
50.
A firm that adopts policies to maximize values in the market can:
 
 
51.
A firm that does not wish to borrow to meet anticipated sales growth may instead decide to
 
 
52.
A firm using the FIFO inventory accounting method has beginning inventory of 300 units at a cost of $15 each. During the period the firm produced 700 units at a cost of $17 each. If the firm sold 800 units during the period, the cost of goods sold is ______
 
 
53.
A firm wishes to maintain a cash balance of $8,000 at all times. The cash budgets reveals that the firm will go below this amount in the month of May. To maintain the desired cash balance, the firm must _______.
 
 
55.
Following the steps needed to develop the pro forma income statement. Place each step in its proper order.
 
 
56.
Generally, when a company's sales increase, the affect on temporary and permanent assets is:
 
 
60.
The high point in the amount of inventory for a seasonal business using level production would usually be
 
 
61.
If a company is operating at ______, it will need to buy new plant and equipment to produce more goods to sell.
 
 
62.
If a company is using level production and sales are steadily increasing above the forecast amounts
 
 
63.
If a company uses long term debt to finance part of short term needs, it is likely
 
 
64.
If a company uses short term debt to finance permanent current assets and fixed assets
 
 
 
 
 
 
 
 
 

65.
If a company utilized level production:
 
 
66.
If a company utilizes level production:
 
 
67.
If sales increase while production stays level:
 
 
68.
The importance of the pro forma income statement is to provide a projection of how much _____ is anticipated over the ensuring time period.
 
 
69.
In a limited liability partnership, one or more of the partners is designated as a ______.
 
 
70.
In developing a sales forecast, total projected sales (in dollars) can be calculated by multiplying the
 
 
71.
In developing cash balance for the pro forma balance sheet, the financial manager is most likely to turn to the
 
 
72.
The information used to prepare the pro forma balance sheet comes from which of the following:
 
 
74.
In preparation of the pro forma income statement, which of the following items are deducted from gross profits to arrive at earnings after taxes?
 
 
76.
The inventory method used most commonly for determining cost of goods sold include:
 
 
78.
It is crucial that a firm ensure that adequate cash is available to ______.
 
 
79.
It is the _____ market that prices of securities are continually changing as investors buy and sell securities based on their expectations of a corporation's prospects.
 
 
80.
A key difference between a partnership and a sole proprietorship is:
 
 
81.
The largest expense associated with a merchandising firm is its
 
 
83.
The low current ratio of between 1.2 and 1.5, since 2000 can be traced to:
 
 
84.
The major drawbacks of a sole proprietorship?
 
 
88.
The _____ method assumes that accounts on the balance sheet will maintain a given percentage relationship to sales
 
 
90.
The most comprehensive means of financial forecasting is to
 
 
91.
Normally it is most appropriate to finance seasonal increases in current assets with an
 
 
 
 
 
 
 
 
 

93.
The percentage of net working capital is calculated by dividing net working capital by
 
 
94.
The percent-of-sales method for financial forecasting
 
 
96.
The primary considerations for cash payments are monthly costs associated with
 
 
98.
The primary purpose of the ____ budget is to allow the firm to anticipate the need for outside funding at the end of each month.
 
 
99.
Problem of inadequate financing arrangements result from the business person's failure to realize the firm is carrying not only self-liquidating inventory, but also the anomaly of _______ current assets.
 
 
100.
Problems of inadequate financing arrangements result from the business person's failure to realize the firm is carrying not only self-liquidating inventory, but also the anomaly of __________ current assets.
 
 
101.
The process of dividing the pro forma income statement into smaller time frames is done to anticipate the seasonal and monthly patterns of which of the following?
 
 
102.
The production plan is dependent upon the _______ projection.
 
 
103.
The pro forma balance sheet is developed by integrating the information from the ________.
 
 
104.
The _______ provides a projection of how much profit the firm anticipates making over the ensuring time period.
 
 
105.
Real capital refers to long-term plant and ____________
 
 
107.
A risk of using short term funds to finance operations is
 
 
108.
Sales growth can be financed through which of the following?
 
 
109.
Self liquidating assets are
 
 
110.
Some advantages of using level production are:
 
 
111.
Some companies prefer to use the ______ inventory accounting method because it provides a higher cost of goods sold value and a lower inventory value during periods of rising prices.
 
 
 
 
 
 
 
 
 

112.
Some disadvantages of level production are
 
 
113.
A special form of partnership that circumvents shared unlimited liability is:
 
 
114.
The term structure of interest rates refer to
 
 
115.
This formula is used to determine the firm's _____ requirements:
______ = projected sales + desired ending inventory - beginning inventory
 
 
116.
Trade credit is usually
 
 
118.
Under level production, a simple way to determine the number of units to be produced per month would be to
 
 
119.
What are some of the drawback(s) to profit maximization as the primary goal of the firm?
 
 
120.
What does a current ratio of 2.5 times represent.
 
 
121.
What is the inventory accounting method for inventory that firm allocates the cost of current sales to beginning inventory and then to goods manufactured during the period?
 
 
122.
What is the inventory accounting method that first allocates the cost of current sales to goods manufactured during the period unit current production is depleted, and then the beginning inventory?
 
 
123.
When preparing a pro forma income statement, the main consideration is the _____ for the time period.
 
 
124.
Which factor(s) must the financial manager make into consideration when making decisions that will increase the firm's overall valuation?
 
 
125.
Which of the following are debt utilization ratio?
 
 
126.
Which of the following is a projection of future assets, liabilities, and stockholders' equity levels?
 
 
127.
Which of the following is more likely to need to raise additional long-term capital to support its anticipated sales growth?
 
 
130.
Which of the following two methods provides a month-to-month breakdown of the data?
 
 
131.
Your company's inventory valuation reaches a high of $100,000 before its busy season and a low of $30,000 during its slow season. The $30,000 level of inventory is considered to be:
 
 
 
 
 
 
 
 
 

 

1.
 
 
A firm that adopts policies to maximize values in the market can:
8.
 
 
Real capital refers to long-term plant and ________
10.
 
 
(True or False) Inflation is not a key variable in financial decisions.
11.
 
 
(True or False) Profit maximization is the primary goal of the firm.
15.
 
 
For what do corporations rely on financial markets to provide?
16.
 
 
In a limited liability partnership, one or more of the partners is designated as a ________
18.
 
 
Money markets deal with securities that
19.
 
 
________________ occurs when someone has information that is not available to the public and then uses this information to profit from trading in a company's publicly traded securities.
22.
 
 
What are some of the drawback(s) to profit maximization as the primary goal of the firm?
23.
 
 
Select the components of a corporation that distinguish it from a sole proprietorship and a partnership.
24.
 
 
A corporation is a ___________entity unto itself. Therefore, it may sue or be sued, engage in contracts, and acquire property.
27.
 
 
Global companies can utilize the international financial markets in their search for _______ sources of financing.
28.
 
 
An advantage of a sole proprietorship
30.
 
 
Markets dealing with short-term securities are referred to as _____________ market.
31.
 
 
The growth of the global company has led to the growth of global fund raising as companies seek low-priced sources of funds through international ____________.
33.
 
 
A Key difference between a partnership and a sole proprietorship is:
35.
 
 
An initial public offering takes place in which market?
36.
 
 
A financial manager's functions must be carried out while also balancing:
37.
 
 
Which of the following is true of a sole proprietorship?
41.
 
 
Allocation of capital in the financial markets is based on:
 
 
 
 
 
 
 
 

43.
 
 
Agency theory states that management should make decisions that are in the best interest of the firm's:
44.
 
 
Agency theory states that management should make decisions that are in the best interest of the firm's:
45.
 
 
The owners of a corporation may be referred to as:
46.
 
 
Which factor(s) must the financial manager take into consideration when making decisions that will increase the firm's overall valuation.
50.
 
 
(True or False) By the mid-1950s finance moved away from its descriptive and defined nature and became more analytical.
57.
 
 
The financial manager should attempt to maximize the wealth of the firm's shareholders through achieving the highest possible_____________ for the firm.
 
 
 
 
 
 
 

 

2.
Agency theory states that management should make decisions that are in the best interest of the firm's:
 
 
3.
Allocation of capital in the financial markets is based on:
 
 
4.
Asset utilization ratios are used to measure management's ability to:
 
 
5.
The balance sheet provides a detail of the firm's __________ as of one day in time.
 
 
6.
Before issuing new shares of stock, the financial manager must ensure that the additional shares will generate sufficient earnings to avoid a reduction in which of the following?
 
 
7.
Besides changing prices, other elements of distortion in the financial evaluation of a company may include which of the following:
 
 
8.
Besides finance, what other functional areas of a business must be familiar with ratio analysis?
 
 
9.
A bondholder is likely to be primarily influenced by which of the following ratio categories?
 
 
10.
Book value of corporation can be calculated by taking the sum of which of the following?
 
 
11.
A company's profit can be:
 
 
12.
Components of a corporation that distinguish it from a sole proprietorship and a partnership
 
 
13.
Corporate federal tax rates have changed four times since 1980. According to the textbook, the current top rate is_______
 
 
14.
A corporation has a continual life which means that it is not dependent upon any one shareholder for maintaining its:
 
 
16.
The debt-equity structure of the firm, the dividend payment policy, the quality of management, and the earnings and sales growth of the firm are a few of the factors that influence the:
 
 
17.
Debt utilization ratios indicate to what extent the firm is:
 
 
18.
Deflation can be described as:
 
 
19.
Depreciation is considered to be a ____________ of funds
 
 
20.
Depreciation is purely an accounting method entry that does not directly involve the movement of funds. It is an attempt to match the annual expenses of plant and equipment ownership against the __________ being produced.
 
 
21.
A device for measuring the changes in earnings retained in the business
 
 
23.
Double taxation can be circumvented through the formation of:
 
 
24.
Earnings before taxes (EBT) is equal to:
 
 
26.
The field of finance is closely related to the fields of:
 
 
27.
A financial manager's functions must be carried out while also balancing:
 
 
28.
The financial manager should attempt to maximize the wealth of the firm's shareholders through achieving the highest possible __________ for the firm.
 
 
29.
Financial managers must know how to interpret a company's financial statements in order to
 
 
30.
Financial ratios are used to judge the operating _________ of the firm.
 
 
31.
Firms expected to provide returns greater than those for the market, with equal or less risk, often have P/E ratios that are ____________ the market P/E ratio.
 
 
32.
A firm that adopts policies to maximize values in the market can:
 
 
34.
For a profit margin, is higher or lower better?
 
 
35.
For ___________ ratios, the primary emphasis is on the firm's ability to pay off short-term obligations as they come due.
 
 
36.
For what do corporations rely on financial markets to provide?
 
 
37.
From the investor's perspective, which ratio category is of primary importance?
 
 
39.
Global companies can utilize the international financial markets in their search for __________ sources of financing
 
 
 
 
 
 
 
 
 
 
 

40.
The growth of the global economy has led to the growth of global fund raising as companies seek low-priced sources of funds through international _________
 
 
41.
How are current assets listed?
 
 
42.
In a limited liability partnership, one or more of the partners is designated as a:
 
 
43.
The income statement and the balance sheet use the __________ method of accounting.
 
 
44.
Inflation is a source of ___________ on the financial reporting of the firm.
 
 
45.
In order to determine cash flows from operating activities, firms may use a _______________ method in which every item on the income statement is adjusted from accrual accounting to cash accounting.
 
 
47.
Is a day considered a period of time for financial statements?
 
 
48.
Is a higher or lower fixed charge cover ratio better?
 
 
49.
Is a shorter or longer collection period better?
 
 
50.
Is higher or lower better for times interest earned ratio?
 
 
54.
A key difference between a partnership and sole proprietorship is:
 
 
56.
Liquidity ratios
 
 
60.
Markets dealing with short-term securities are referred to as:
 
 
61.
Markets where securities have a lifetime of more than one year
 
 
62.
The meeting place for people, corporations, and institutions that either need money or have money to lend or invest
 
 
63.
Operating profit is equal to
 
 
64.
Participants in corporate financial markets include:
 
 
66.
The P/E ratio can be used by the investor to:
 
 
67.
Plant and equipment are carried in the accounting records at their original cost minus _____________
 
 
70.
Profitability ratios measure the firm's ability to:
 
 
71.
___________ ratios are used to weigh and evaluate the operating performance of the firm.
 
 
72.
Real capital
 
 
73.
Reinvested funds, also known as retained earnings, belong to whom?
 
 
 
 
 
 
 
 
 

75.
The restructuring of companies like Hewlett-Packart and McGraw Hill were a direct result of ___________ affecting change, by influencing the boards of directors, in response to their concerns related to maximizing the value of their investments.
 
 
76.
The sale of the firm's securities represents a (use or source) _____________ of funds in determining cash flows from financing activities.
 
 
78.
Short and long-term financial obligations of the firm are referred to as:
 
 
80.
A special form of partnership that circumvents unlimited liability is:
 
 
81.
The statement of cash flows provides a detail of the firm's ___________ over a period of time.
 
 
82.
Steps to compute net cash flow from operating activities using the indirect method
 
 
83.
Total stockholders' equity consists of which of the following?
 
 
84.
Trend analysis can be described as:
 
 
88.
What does a current ratio of 2.5 represent?
 
 
89.
What does a debt to total assets ratio of 50% indicate about a company?
 
 
90.
What does a fixed asset turnover of 4 represent?
 
 
91.
What does a profit margin of 20% represent?
 
 
92.
What does a return on assets of 12.5% represent?
 
 
93.
What factor(s) must the financial manager take into consideration when making decisions that will increase the firm's overall valuation?
 
 
94.
What is included in the statement of cash flows?
 
 
95.
What is the correct order of assets on the balance sheet?
 
 
96.
What is true of a partnership?
 
 
97.
What is true of a sole proprietorship?
 
 
98.
Which of the following are current liabilities?
 
 
99.
Which of the following are debt utilization ratios?
 
 
 
 
 
 
 
 
 

100.
Which of the following are examples of primary financial decisions that would be likely to be influenced by income tax considerations?
 
 
101.
Which of the following entities would normally look at free cash flows to determine whether there are sufficient excess funds to pay back a loan associated with a leveraged buyout?
 
 
102.
Which of the following organizations provide industry data that can be used to evaluate a company's operating performance?
 
 
103.
Which of the following would be classified as an investment?
 
 
104.
While the income statement purports to show the profitability of the firm, the balance sheet delineates the firm's: