Which of the Following Is Not an Example of a Sharp

question 18

Multiple Choice

Which of the following is not an example of a sharp practice?

• A) A supply manager talks in terms of large quantities to encourage a price quote on that basis
• B) A sales person buys lunch for a buyer in the hope that the buyer will be influenced to buy his or her goods and services
• C) A large number of bids are solicited in hope that the buyer will be able to take advantage of a quotation error
• D) Bids are obtained from unqualified suppliers that the supply manager would not patronize in any case
• E) A supply manager who places in competition the prices of seconds, odd lots, or distress merchandise misrepresents a market

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Definitions:

FIFO System

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.

Straight Line Amortization

A method of allocating an asset's cost evenly across its useful life.

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.

Retained Earnings

The cumulative amount of profits that a company has earned, less any dividends or other distributions to shareholders over its life.