Aardvark Corp

question 105

Multiple Choice

Aardvark Corp. has three products. Two products together make up two-thirds of revenues and constitute 50 percent of company profits. Aardvark's third product makes up one third of sales. With profitability far above the industry average, this product is responsible for one half of Aardvark's profits. Which of the following statements regarding assessment of the general environment is accurate for Aardvark?

• A) The company should monitor the general environment for changes that might effect the revenue of all products.
• B) The company should monitor the general environment for changes that might effect the profitability of the most profitable products.
• C) The company should monitor the general environment for changes that might effect the profitability of all products.
• D) The company should monitor the general environment for changes that might effect the revenue and profitability of all products.

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Definitions:

Sale Of Goods Act

Legislation that regulates the sale of goods, ensuring certain standards of quality and fitness for purpose among other sales rights and duties.

Consumer Protection Legislation

Laws and regulations designed to ensure the rights of consumers are protected and to promote fair trade, competition, and accurate information in the marketplace.

Consumer Protection Legislation

Laws enacted to ensure the rights of consumers are protected, aiming to prevent businesses from engaging in fraud or specified unfair practices.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk regarding the quality and condition of the product being purchased.