C Makes a Large Contract with E to Supply Food

question 4

Multiple Choice

C makes a large contract with E to supply food and beverages for E's huge Christmas party. C then enters into a contract with D, under which D will supply 10,000 mince pies to C on 24 December for £5000. In which scenario is duress least likely to be established?

• A) D calls on 1 May and threatens not to supply any mince pies if C does not pay an extra £10,000.
• B) 5 days before the delivery date, after making 1,000 mince pies, D realises that she had underestimated the costs of ingredients. D tells C that she will stop making the mince pies if C does not pay another £2000.
• C) D calls in on 23 December and threatens not to supply the mince pies unless C pays another £5000.
• D) 1 week before the delivery date, D calls C and threatens not to supply the mince pies unless C pays another £5000. E had asked for customised mince pies, and D is aware of the fact no other bakery will be able to meet those demands with such short notice.

Identify the factors determining the best organizational design, including environmental, strategic, and technological considerations.

Evaluate the role of strategic choices in shaping organizational design and performance.

Understand the concepts of mechanistic and organic organizations and their applications in different contexts.

Understand how to utilize Employee Lists in QBO for payroll management.

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Definitions:

Supervisory Expense

Costs associated with salaries and benefits for supervisory personnel overseeing production or services.

Activity-Based Costing

A pricing technique that identifies tasks within an organization and allocates the expense of each task to all goods and services based on their real usage.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.

Supervising Activity

An oversight function involving the monitoring and direction of resources, processes, or employees to achieve organizational objectives efficiently.