A company has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management?
A) The liability should be estimated and recorded as an expense.
B) The situation should be described in a note to the financial statements.
C) The possible liability should be ignored.
D) Management should consider resigning.
B) The situation should be described in a note to the financial statements.
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Zara, the CEO of a multinational corporation, is presenting to her board. She is attempting to educate them regarding the concerns of the anti-globalist movement. Which of the following items from her presentation, does not represent a concern raised by this position?
A) Human rights are frequently violated in other nations. B) Unemployment in Canada is a result of the movement of factories in the developing nations. C) Intellectual property becomes more transferable. D) Decision making based on profits is inappropriate. E) Product patents are not respected.
Common law plays an important role in regulating partnerships
a. True b. False Indicate whether the statement is true or false
Global marketers typically find distribution in developing countries is more complex because
A. most consumers in developing countries live in densely populated cities. B. the infrastructure is more advanced in most developing countries. C. they must go through many different types of distribution channels. D. distribution is more heavily regulated in developing countries. E. consumers in developing countries have very specific preferences.
A company produces 1,000 packages of chicken feed per month
The sales price is $6 per pack. Variable cost is $1.50 per unit, and fixed costs are $1,600 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.50 to $2.50 per unit, but there will be no change in fixed costs. The company will price the new product at $4.50 to compete with other products. How will this affect operating income? A) Operating income will decrease by $2,500 per month. B) Operating income will increase by $2,500 per month. C) Operating income will decrease by $1,600 per month. D) Operating income will remain unchanged.