Figure 1 Universe Industries Has Two Divisions: the Haley Division and the and the Comet

question 37

Multiple Choice

Figure 1
Universe Industries has two divisions: the Haley Division and the Comet Division. Information about a component that the Haley Division produces is as follows:
The Haley Division can produce up to 5,000 components per year. The Comet Division needs 200 units of the component for a product it manufactures.
-Refer to Figure 1 above. The maximum transfer price that the Comet Division would be willing to pay is

• A) £120
• B) £70
• C) £50
• D) £30

---

Definitions:

Punitive Damages

Compensation awarded to a plaintiff that goes beyond reimbursement for actual losses and is imposed to punish the defendant and deter such conduct in the future. Also called exemplary damages.

Compensatory Damages

Money awarded to a plaintiff as reimbursement for her or his losses; based on the amount of actual damage or harm to property, lost wages or profits, pain and suffering, medical expenses, disability, etc.

Breach of Contract

The failure to perform an obligation or promise specified in a contract, which can lead to legal action by the injured party for damages or enforcement.

Landlord's Consent

Landlord's consent is the approval a landlord must give for certain actions by the tenant, such as alterations to the property or subletting.