A Parent Company Sells Some Inventory to Its Subsidiary for $5000.The

question 10

Multiple Choice

A parent company sells some inventory to its subsidiary for $5000.The original cost of the inventory to the parent was $4000.The economic entity only makes a profit when:

• A)the subsidiary resells the inventory back to the parent
• B)the subsidiary resells the inventory outside the group
• C)the parent sells the inventory to the subsidiary
• D)none of the above

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Definitions:

At-Will Employment

A type of employment arrangement where either the employer or the employee can terminate the employment at any time, for any reason, provided it's not illegal.

Employee

An individual who is hired by an employer to perform a specific job or task and is paid a wage or salary in return.

Quit

To leave or discontinue a process, job, or action.

At-Will Employee

An employment arrangement where either the employer or the employee can terminate the employment relationship at any time and for any reason, except an illegal one.