Bob, owner of a small business, goes to Sally to negotiate the purchase of some inventory. Bob
has Paul with him, who he introduces to Sally as "Paul, my purchasing manager".
A short while
later, Bob says he must leave and says, "You two can conclude this deal." Paul signs a contract to
buy 2,500 units of her product. Paul tells Bob, and Bob then says, "You know you weren't
supposed to buy more than 1,000 units!" Assume that Bob, in fact, had instructed Paul, prior to
meeting with Sally, to not buy more than 1,000 units. Can Sally hold Bob to the contract?
A) Yes, because there was apparent authority for the transaction.
B) Yes, because there was implied authority for the transaction.
C) No, but she can hold him to a purchase of 1,000 units.
D) No, because Paul did not have authority to buy 2,500 units.
A
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Which consumer buyer behavior trend suggests that the traditional roles, lifestyles, and interests of both men and women are becoming blurred?
A) age complexity B) gender complexity C) active, busy lifestyles D) individualism
In testing for unrecorded retirements of equipment, an auditor most likely would:
A. select items of equipment from the accounting records and then locate them during the plant tour. B. compare depreciation journal entries with similar prior-year entries in search of fully depreciated equipment. C. scan the general journal for unusual equipment additions and excessive debits to repairs and maintenance expense. D. inspect items of equipment observed during the plant tour and then trace them to the equipment subsidiary ledger.
In which of the following ways is the management of a company accountable to its communities?
A) making timely interest payments to creditors and dividend payments to investors B) ensuring the company's environmental impact is not harmful to its community C) providing a capital return on the shareholders' investment D) repaying principal and interest to the suppliers
If the sale of ice cream and pizza are independent, then as ice cream sales decrease by 60 percent during the winter months, pizza sales will
A) increase by 60 percent. B) increase by 40 percent. C) decrease by 60 percent. D) decrease by 40 percent. E) be unrelated.