A College Student Is Taking a Full Course Load,working 20

question 51

Multiple Choice

A college student is taking a full course load,working 20 hours per week,and still has to take out a student loan to cover tuition.One day,he sees a classmate driving a new Lexus LFA sports coupe (price: $375,000) and feels he just has to have one for himself.What factor is most likely to prevent a successful marketing exchange between the student and the local Lexus dealer located in an affluent suburb about 20 miles from his university?

• A)The local Lexus dealer only has one Lexus LFA sports coupe in stock-red,which is the color he wants.
• B)The student does not have the resources to qualify for a $375,000 auto loan.
• C)Although the Lexus LFA sports coupe is a great car,there may be other cars with better gas mileage and resale value.
• D)He's afraid that if someone at school sees him with the car,he might lose his student loan.
• E)His girlfriend wants him to drive a Kia Soul.

---

Definitions:

FASB

The Financial Accounting Standards Board, a private, non-profit organization standard setter, which establishes the generally accepted accounting principles (GAAP) within the United States.

Agency Theory

A framework that analyzes the relationship and conflicts between principals (owners) and agents (managers) in a corporation, focusing on how to align their interests.

Managers' Behavior

The actions and decisions made by managers in the course of operating a business, which can significantly impact the company's performance and culture.

Stockholders

Individuals or entities that own shares in a corporation, granting them certain rights such as voting on corporate matters and receiving dividends.