Assume That the Entertainment Division Is Able to Purchase a Large

question 59

Multiple Choice

Assume that the Entertainment Division is able to purchase a large quantity of video cards from an outside source at $8.70 per unit.The Video Cards Division,having excess capacity,agrees to lower its transfer price to $8.70 per unit.This action would

• A)optimize the profit goals of the Entertainment Division while subverting the profit goals of Parkside Inc.
• B)allow evaluation of both divisions on the same basis.
• C)subvert the profit goals of the Video Cards Division while optimizing the profit goals of the Entertainment Division.
• D)optimize the overall profit goals of Parkside Inc.

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of embryonic development.

Embryo

An early stage of development in multicellular organisms, in humans referring to the stage after fertilization up to the end of the eighth week of gestation.

Fetus

A developing human from roughly eight weeks after conception until birth.

Blastocyst

A stage of embryonic development in mammals, occurring roughly five days after fertilization, marked by the formation of a fluid-filled cavity and the differentiation of the embryo into two layers.