If You Are in the Business of Selling Chicken and the Price

question 115

Multiple Choice

If you are in the business of selling chicken and the price of chicken and the price of beef both were to drop dramatically,what should you do with your inventory level of chicken?

• A) Keep it the same.
• B) Decrease the inventory.
• C) Increase the inventory.
• D) Get into the beef business.

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Definitions:

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party at a specified time.

Pay Money

The act of giving a certain amount of currency or financial value in exchange for goods or services.

Third Person

An individual who is not directly involved in a contract or legal agreement but may be affected by it.

Common Law Doctrine

A legal principle developed through past court decisions rather than through legislative statutes or written laws.