Shirley Has Made the Following Predictions for Her Business for the First

question 6

Multiple Choice

Shirley has made the following predictions for her business for the first six months of trading to 30 June:
Sales in Jan, Feb and March = £30,000 per month.
Sales in Apr, May and June = £45,000 per month.
Sales will be on one month's credit.
Purchases will be for cash.
If goods are sold at a gross profit margin of 33.33%, and goods are replaced as soon as they are sold, the amount payable to suppliers in March, will be:

• A) £15,000.
• B) £30,000.
• C) £45,000.
• D) £20,000.

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Definitions:

Cellophane Case

The Cellophane Case refers to a landmark antitrust case involving DuPont's monopoly on the cellophane market, highlighting issues of market definition and competition.

Sherman Act

A key U.S. antitrust law aimed at preventing monopolies and promoting competition among businesses.

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Microsoft Case

A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices.