Chip's Chips Company agrees to supply Delicioso Café with all the corn chips that it requires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Chip's asks Delicioso to pay a higher price for the chips. This request is
A. invalid as an attempt at extortion or the so-called holdup game.
B. invalid under the preexisting duty rule.
C. valid as a risk ordinarily assumed in business.
D. valid due to the unforeseen difficulty of the sudden price increase.
Answer: D
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The Governmental Activities column of the government-wide statement of net position reports both current and noncurrent assets and liabilities.
Answer the following statement true (T) or false (F)
A 2011 California Management Review article noted that in establishing its CR reputation, a corporation has two levers at its disposal–a positive and a negative lever. The positive lever involves activities that contribute to the sense the firm ‘does the right thing, such all of the following EXCEPT ____________.
a. investing in local community services. b. treating employees extraordinarily well. c. supporting local sustainability efforts. d. bargaining aggressively with suppliers so local customers get a better price.
In low-income countries, a higher percentage of entrepreneurs are considered:
a. necessity entrepreneurs. b. angel investors. c. venture capitalists. d. commercial lenders.
Deductions for adjusted gross income are known as below-the-line deductions.
Indicate whether the statement is true or false.