Which of the Following Would NOT Be a Merchant Under

question 3

Multiple Choice

Which of the following would NOT be a merchant under Article 2 of the UCC?

• A) The owner of a hardware store which sells paint.
• B) A car mechanic who fixes used cars and sells them in his spare time.
• C) A person who inherits three speedboats and wants to sell them to buy a car.
• D) Two of these are true.

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Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Sold Unit

Refers to a single unit of product that has been sold, representing a measure of the volume of sales transactions.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs to variable costs.

Variable Costs

Expenses that vary in direct relation to the amount of output or sales.