Which of the Following Statements Is CORRECT

question 54

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers.Thus, cannibalization is dealt with by society through the antitrust laws.
• B) If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects.Otherwise, the calculated NPV will be biased downward.
• C) If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized.
• D) Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself.
• E) If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors.Thus, cannibalization is dealt with by society through the antitrust laws.

Understand the implications of dying intestate and estate distribution without a will.

Understand the principles and methods for calculating days' sales in inventory.

Comprehend the components and special considerations in determining merchandise inventory.

Learn how to calculate the cost of goods sold and ending inventory using the LIFO and FIFO inventory valuation methods.

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Definitions:

Functional Manager

A manager responsible for a specific business function or department, such as marketing, finance, or human resources.

Accounts Department

The Accounts Department handles the financial record-keeping, including transactions, budgeting, and financial reporting within an organization.

Quality of Work Life

Concerns the overall environment, conditions, and satisfaction individuals experience in their workplace, including job security, work-life balance, and health and safety.

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.