When a division is operating at capacity, the transfer price should be ________
A) based on opportunity cost
B) a market-based transfer price
C) a cost-based transfer price
D) the total manufacturing cost
B
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Which of the following is not true regarding specific bond provisions?
a. Firms might issue bonds based only on their credit worthiness as an entity. b. Particular collateral might back up bonds issued by a firm. c. Unsecured borrowing might carry senior rights or subordinated rights in the event of bankruptcy. d. Senior debt holders have a higher priority for payment in the event of bankruptcy than subordinated (junior) unsecured lenders. e. Common stockholders have a higher priority than unsecured bondholders for payment in the event of bankruptcy.
Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need. Although Gerard understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the Restatement:
A) Gerard's contract is voidable at his option while it is entirely executory. B) Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard's incompetency. C) Gerard cannot avoid the contract if the terms are fair. D) Gerard can only avoid the contract if the terms are grossly unfair.
Which of the following situations create(s) an exception to the statute of frauds writing requirement?
A) non-resellable goods B) receipt and acceptance C) payment D) specially manufactured goods
The __________ is highly responsive to the customer
a. functional organizational structure b. autonomous project organizational structure c. matrix organizational structure d. hierarchical organizational structure