Which of the Following Is an Example of Arbitrage

question 46

Multiple Choice

Which of the following is an example of arbitrage?

• A)A firm sells a box of cereal at $10 when the average cost of producing it is $6.
• B)Thomas buys a new stock issued by a firm on the stock exchange.
• C)A local salon charges 5 percent more for all its services than a competing salon in the same locality.
• D)Romi buys a DVD from Walmart at $10 and sells it on eBay for $20.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor expenses.

Time Ticket

A document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost.

Personal Exemptions

Deductions allowed on individual income tax returns, reducing the amount of income subject to taxation, based on the taxpayer and dependents.

Job Number

An unique identifier assigned to a specific job or project for tracking costs, progress, and billing.