Ivan Sells Customized Computer Software and Hardware to Small Businesses

question 51

Multiple Choice

Ivan sells customized computer software and hardware to small businesses. To make the sale to Newport Nursery, he has offered to give the owner a reduced price if she will buy today. He initially quoted her a price $100 more than his company's list price; his bargain price is the list price. Ivan has:

• A)acted illegally.
• B)violated the Robinson-Patman Act.
• C)tried to use backdoor selling.
• D)used deception in trying to make a sale.
• E)acted within the typical salesperson's ethical boundaries.

Understand the conceptual and practical implications of stock and cash dividends on financial statements.

Demonstrate knowledge of the requirements and methods for presenting earnings per share (EPS) in financial reports for simple and complex capital structures.

Identify and analyze the effects of dividend declarations on working capital, current ratio, and other liquidity measures.

Comprehend the different types of dividends (cash, stock, property) and their financial statement implications.

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