1. What are two techniques used to validate analyses? Explain some of the risks associated with using these two techniques.

2. Which of the following statements is true of the management function of organizing?

Organizing is the last step in the process of managing a business.

Organizing involves determining and administering appropriate rewards and recognition for employees in an organization.

Organizing is a management function that leads to the duplication of resources.

Organizing helps create synergy, whereby the effect of a whole system equals more than that of its parts. Organizing is the process of evaluating and correcting activities to keep a business on course.

3. There are additional tax advantages, beyond mismatch of income and deduction, for the establishment of an ESOP. One of these is non-recognition of gain treatment. To obtain non-recognition of gain treatment, qualified replacement property must be purchased. Which of the following investments would qualify as qualified replacement securities?

a. DIA - The Dow Jones Industrial Average ETF Trust.

b. Porsche Automobile Holding ADR.

c. UPS (United Parcel Service) Debentures.

d. Louisiana general obligation bonds.