Ned and John, Owners of a Chicken Processing Plant, Recently

question 42

Multiple Choice

Ned and John, owners of a chicken processing plant, recently attended a trade show where they saw a breast deboning machine that operates at a capacity of 900 birds per hour and requires only one employee. Until the show, the brothers had no idea such a product existed. As far as they have learned, only one company is manufacturing such a machine. They have calculated that such a machine could save them up to $200 a day in labour costs. They have contacted the company to learn more about the $67,000 deboning machine. The Rogers brothers are engaged in which type of purchase?

• A) systems rebuy
• B) straight rebuy
• C) new task
• D) customised order
• E) modified rebuy

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Definitions:

Ultra Vires

A Latin term meaning “beyond the powers”; in legal context, actions taken by a corporation or company officials that are beyond their legally granted corporate powers.

Quorum

That number of persons, shares represented, or officers who may lawfully transact the business of a meeting called for that purpose.

Adopting And Amending Bylaws

The procedure for creating and modifying the rules that govern the internal management of an organization, typically requiring approval by its governing body or members.

Straight Voting

Straight voting is a voting system in corporate shareholder meetings where each shareholder's voting power is proportional to the number of shares they own, used mainly in electing directors.