Which of the Following Is Not an Example of a Business

question 7

Multiple Choice

Which of the following is not an example of a business rule?

• A)Managers must approve orders over $10,000
• B)The credit department must approve all sales on account
• C)Inventory must be maintained in a secure location
• D)Employee who receives checks can not change invoices

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Producer Surplus

The amount a seller is paid for a good minus the seller’s cost of providing it.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding all costs.

Monopoly

A market structure characterized by a single seller dominating the market, with no close substitutes for the product, giving the seller considerable power over prices.