The difference between a guarantee and an indemnity is that
A) the guarantor has unlimited liability for any debts of the prinicipal debtor
B) the person who signs the indemnity can be called on before the principal debtor to repay the debt
C) the person who signs the indemnity has unlimited liability for any debts of the principal debtor
D) the person who signs the guarantee can be called on before the principal debtor to repay the debt
E) there is no difference between a guarantee and an indemnity
B
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Which of the following is true about the Triad?
A) Triad countries account for approximately one-third of world income and one-third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.
________ cost is the cost per unit at that level of production; it equals total costs divided by production
A) Target B) Average C) Marginal D) Opportunity E) Fixed
Which of the following is a disadvantage of a general partnership?
A) The control of a partnership is skewed in favor of the partner who invests most capital. B) Partnerships do not have perpetual existence. C) Both a partnership and its individual partners are taxed separately. D) The partnership agreement does not allow partners to leave the business.
Steinhoff Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor that could be used by another division in the company, the Safety Products Division, in one of its products. Data concerning that sensor appear below: Capacity in units 51,000Selling price to outside customers$56Variable cost per unit$37Fixed cost per unit (based on capacity)$14?The Safety Products Division is currently purchasing 4,000 of these sensors per year from an overseas supplier at a cost of $48 per sensor.?Assume that the Valve Division is selling all of the valves it can produce to outside customers. From the standpoint of the Valve Division, what is the lost contribution margin if the valves are transferred internally rather than sold to
outside customers? A. $969,000 B. $120,000 C. $20,000 D. $76,000