Zoom Company, a distiller of liquors, ages its whiskeys for approximately 10 years. The firm must pay the costs to produce the whiskey and to store it during the aging process. Using the whiskey as collateral, Zoom could borrow to finance the costs incurred during the aging process; doing so would, however, lead to Zoom reporting increased liabilities. Instead, Zoom sells the whiskey to a bank
and agrees to oversee the aging process on the bank's behalf. At the completion of the aging, Zoom Company guarantees an ultimate selling price that pays the lender both the original purchase price and a reasonable return over that amount. Zoom
a. bears the economic risks and must show a liability on its balance sheet.
b. bears the economic risks and but does not show a liability on its balance sheet.
c. does not bear the economic risks and must show a liability on its balance sheet.
d. does not bear the economic risks and does not show a liability on its balance sheet.
e. will likely record the transaction as a sale and not a loan.
A
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Which of the following statements about the universal functions of marketing is FALSE?
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List and describe the four sources of information that are typically used in evidence- based management.
What will be an ideal response?
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What will be an ideal response?