A Local College of Business Offers an Outstanding Graduate Business

question 81

Multiple Choice

A local college of business offers an outstanding graduate business school education program. Maria pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange?

• A) No, because the university earned a profit from Maria's tuition.
• B) No, because money was exchanged in the form of tuition and Maria's income will come from her employer, not the graduate school.
• C) No, because the school did not provide Maria with a tangible product, only the potential of an education.
• D) Yes, because the university promised Maria she would graduate on time, and she did.
• E) Yes, because paying tuition was exchanged for knowledge that directly led to Maria's high-paying, fulfilling new job.

---

Definitions:

Straight-line Method

A method of calculating depreciation by uniformly distributing the cost of an asset minus its salvage value over its useful life.

Gain on Sale

The financial benefit that occurs when the selling price of an asset exceeds its original purchase price.

Loss on Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, representing its decrease in value.