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Colorful Concoctions, a Maker of Children's Crayons, Decided to Price

question 50

Multiple Choice

Colorful Concoctions, a maker of children's crayons, decided to price its boxes of crayons below the long-term market price. The firm agreed to reduce its profit margin from 30 percent to 5 percent in the short-term in order to increase market share and discourage other firms from entering the crayon market. Colorful Concoctions was implementing a

Gain a thorough understanding of liabilities including known, estimated, and contingent liabilities, and the recognition criteria for each.

Understand the fundamentals of payroll accounting including gross pay, deductions, and net pay.

Calculate and distinguish between various payroll taxes and liabilities including FICA, FUTA, and SUTA taxes.

Identify and understand short-term financial instruments like notes payable, including their interest calculations and maturity values.

Definitions:

World Bank

A global economic institution that provides funding and grants to the governments of less developed countries for the purpose of capital project completion.

Technical Assistance

Support provided, usually to developing countries or firms, in the form of expertise or knowledge transfer to foster growth or solve specific problems.

Microfinance

The provision of small loans and other financial services to low-income entrepreneurs and small-business owners in developing countries.

Microcredit

Small loans given to entrepreneurs in developing countries as a way to foster economic development and alleviate poverty.