Which of the Following Businesses Is Most Likely to Benefit

question 26

Multiple Choice

Which of the following businesses is most likely to benefit from an election to account for its inventory under LIFO?

• A)A company producing the newest version of a tablet with ultra-long battery life.It believes it has a one-year lead over the competition.
• B)A company producing products with copper as a key component - copper prices fluctuate widely.
• C)A company producing parts for the auto industry - costs in this field tend to steadily climb.
• D)None of the above.

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolies and other practices that restrain free competition.

Price-Fixing

An illegal agreement among competitors to fix, raise, or lower the price of a product or service, rather than allowing the market to determine prices naturally.

Interlocking Directorates

The practice of members of a corporate board of directors serving on the boards of multiple corporations, often leading to increased corporate cohesion and shared interests.

Celler-Kefauver Act

A U.S. law, enacted in 1950, designed to prevent anti-competitive mergers and acquisitions by closing loopholes in earlier antitrust legislation.