A Manufacturer of Breakfast Cereals Has the Opportunity to Purchase

question 71

Multiple Choice

A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for 10,000 bushels,if it also buys 5000 bushels of wheat at $16.00 per bushel.However,the manufacturer does not use any barley in its products,and currently needs 20,000 bushels of wheat.If the current market price of barley is $3.80 per bushel,and wheat is $15.80 per bushel,should this opportunity be taken,and why?

• A)Because the company has no need of barley,the opportunity should not be taken.
• B)Because the opportunity does not meet the company's need for wheat,the opportunity should not be taken.
• C)Because the value of the opportunity is positive,the opportunity should be taken.
• D)Because the value of the opportunity is negative the opportunity should not be taken.

---

Definitions:

Corporate Social Responsibility

Practices and policies undertaken by a company to have a positive influence on the world, beyond what is required by regulators or environmental protection groups.

Triple Bottom Line

A sustainability framework that evaluates a company's performance based on social, environmental, and financial criteria.

CSR Activity

Corporate social responsibility activities aimed at enhancing society and the environment beyond the firm's immediate financial interests or legal requirements.

Corporate Performance

A measure of a company's efficiency, productivity, and profitability, typically evaluated through financial metrics and operational indicators.