Which of the Following Situations Is Likely to Be Seen

question 20

Multiple Choice

Which of the following situations is likely to be seen as an offer rather than as a mere invitation to treat?

• A)A poster advertising Business Law at a reduced price.
• B)An email containing the question 'Can I buy your copy of Business Law for $50?'
• C)A copy of Business Law in the window of a book shop with a price tag attached to it.
• D)A catalogue containing a description of Business Law and the statement 'Special offer!'.

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Definitions:

Optimal Transfer Price

The price that should be charged for goods or services transferred between divisions of the same company to maximize overall company profit.

Cost Components

The elements that make up the total cost of a product or service, such as materials, labor, and overhead.

Flexible Budgets

Budgets that adjust or flex with changes in volume or activity levels of a business.

Static Budget

A budget based on a set level of activity and does not change in response to changes in business activity levels during the budget period.