Delemos Products, Incorporated has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter. Data concerning that transmitter appear below: The Remote Devices Division of Delemos Products, Incorporated needs 6,000 special heavy-duty transmitters per year. The Transmitter Division's variable cost to manufacture and ship this special transmitter would be $66 per unit. Because these special transmitters require more manufacturing resources than the standard transmitter, the Transmitter Division would have to reduce its production and sales of standard transmitters to outside customers from 83,000 units per year to 76,400 units per year. From the standpoint of the Transmitter Division, what is the minimal acceptable transfer price for the special transmitters for the Remote Devices Division?

A) $90.00 per unit
B) $98.00 per unit
C) $104.00 per unit
D) $107.80 per unit

Perfection of a security interest in a motor vehicle generally occurs when the secured party files a financing statement with the Federal Trade Commission (FTC).

Violation of the spot-futures parity relationship results in ________.

A) fines and other penalties imposed by the SEC
B) arbitrage opportunities for investors who spot them
C) suspension of delivery privileges
D) suspension of trading

A business combination involves a contingent consideration. As a result, two years after the acquisition date, the acquirer was required to issue an additional 40,000 common shares at a time when the fair value of the common shares was $4 per share. What effect would this transaction have on the balance in the common shares account in the consolidated financial statements on the date of acquisition?

A) It would increase by $160,000.
B) It would not change.
C) It would decrease by $160,000.
D) It is not possible to determine the effect from the information provided.

Boat Tow.Donnie went to a new car dealership and told the salesperson (who was not the manager) that he needed a new car that would both get good gas mileage and pull his big boat.The salesperson encouraged him to buy a smaller car that the salesperson promised would pull the boat.Donnie bought the car and used it to pull the boat.Unfortunately,the heavy pull on the car did significant damage to the car's engine.Donnie complained to the salesperson,who denied any liability.Donnie,who had taken half-a-semester of business law,informed the salesperson that along with the sale of the car he also received an express warranty and an implied warranty of merchantability,and that he could recover under either of those theories.Will Donnie likely be able to recover damages based upon a breach of the implied warranty of merchantability?

A) No,because the implied warranty of merchantability guaranteed that the car would be fit for the ordinary purposes for which it is used.Pulling a boat is not an ordinary purpose for a small car.
B) Yes,because Donnie informed the salesperson about the need for the car to pull the boat.
C) Yes,because the salesperson told Donnie that the car would pull the boat.
D) No,because of the lack of an implied warranty of fitness for a particular purpose.
E) No,because there was no warranty of merchantability.

According to Fayol's centralization principle, the right to give orders must be centralized and the responsibility decentralized.