Imagine a Confectionary Company Has Introduced a New Nutty Candy

question 7

Multiple Choice

Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S.business history) .Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

• A)"We'd better do some market testing to determine why people are dissatisfied."
• B)"Perhaps we should make candy bars with raisins."
• C)"Let's put more aggressive salespeople in the field."
• D)"Let's lower the price and change the name."
• E)"Don't worry about it;we're the largest candy manufacturer in the area.Sooner or later they'll get hungry enough that they'll come to us."

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Definitions:

Implied Authority

This refers to the power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization’s agency agreement, even if not explicitly granted.

Duty of Accounting

The obligation of a party (usually a fiduciary) to keep accurate records and report financial activity to relevant stakeholders or authorities.

Agent Owe

The duty or obligation an agent has to act in the best interest of the principal, including loyalty, care, and full disclosure.

Principal

In finance, the principal is the initial amount of a loan or the amount of an investment excluding any interest or profit earned.