At a local retail store, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
ANSWER: b
The $19.99 is the price of the product. Price is that which is given up in exchange to acquire a product.
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Which of the following is an advantage of a general partnership when compared to a corporation?
a. A partnership is more likely to have a positive net income. b. The partnership is relatively inexpensive to organize. c. Creditors to a partnership cannot attach personal assets of partners. d. The partnership usually hires professional managers.
Churchill Company planned to raise $100,000 by issuing bonds. The bond certificates were printed bearing an interest rate of 8%, which was equal to the market rate of interest. However, before the bonds could be issued, economic conditions forced the market rate up to 9%. If the life of the bonds is 6 years and interest is paid annually on December 31, how much will Churchill receive from the
sale of the bonds? a. Exactly $100,000 because Churchill Company would still pay interest at the face rate of 8%. b. Less than $100,000 because the market rate of interest at 9% was more than the face rate. c. Greater than $100,000 because the face rate of interest at 8% was less than the market rate. d. The bonds would not be sold at all; Churchill Company would have the certificates reprinted bearing the market rate of 9%.
Which of the following best describes what is meant by a breach of security?
A. Access of personal information on a corporate server. B. The unauthorized access to or acquisition of data in an electronic format that contains personal information. C. Breaking into a locked room. D. An unencrypted data transmission.
Gerri has a relatively menial job in a technology driven company. Other employees seem to “look down their nose” at Gerri. Apparently this job is:
a. high in task significance b. high in autonomy c. low in task significance d. low in task identity e. low in feedback