Anne Miles Owns a Small Business That Produces Gourmet Candies

question 158

Multiple Choice

Anne Miles owns a small business that produces gourmet candies that are popular with local households during the holiday party season-from Halloween through New Years. Although it is only mid-September, Anne's storage pantries are beginning to fill with boxes of her special candies. Given the nature of her business, which of the following is the most likely explanation for Anne's large inventory of sweets?

• A) She builds up inventory during slower periods so that she'll have plenty of candy to sell during the peak season without having to invest in additional production capacity.
• B) She believes that there could might be an unexpected surge in demand for her candy and she doesn't want to lose sales by having too little available for sale.
• C) She made a poor sales forecast.
• D) She spent a lot of money on her storage facilities and wants to make sure they are fully utilized.

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Definitions:

Illegal Contract

An agreement that is void and unenforceable by law due to its nature of involving activities that are against the law.

Voidable

Describes a legal agreement that could be declared invalid by one of the parties due to certain deficiencies or circumstances.

Illegal

Actions or activities that are expressly prohibited by law and subject to penal consequences.

Court's Use

Refers to the application and implementation of law and legal procedures by a court.