Mark Fails to Reveal a Material Fact in a Business

question 31

Multiple Choice

Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraudulent misrepresentation if

• A) Mark is not aware of the fact or his failure to reveal it.
• B) the fact concerns value or quality.
• C) the fact concerns a serious defect known to Mark but not to Nancy.
• D) any of the choices.

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Definitions:

Economic Order Quantity

A formula used by companies to determine the optimal order size that minimizes the total costs associated with inventory.

Carrying Cost

The total cost of holding inventory, which includes storage, insurance, depreciation, spoilage, and opportunity cost.

Fixed Cost

Costs that do not change with the volume of production or level of activity within a certain range.

Economic Order Quantity

A formula used to determine the optimal order size that minimizes the total holding costs and ordering costs in inventory management.