The Southern Division of Barstol Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 40,000 units and the variable cost of each unit is $38. Presently the Southern Division sells 37,000 units per year to outside customers at $50 per unit. The Northern Division of Barstol Company would like to buy 20,000 units a year from Southern to use in its production. There would be no savings in variable costs from transferring the units internally rather than selling them externally. The lowest acceptable transfer price from the standpoint of the Southern Division should be closest to:

A) $48.20 per unit
B) $38.00 per unit
C) $50.00 per unit
D) $22.20 per unit

X owed Y a debt in the amount of $1,000. The debt was payable on June 1^st. If X offered Y the sum of $900 on the due date as payment in full, at common law, Y would be entitled to collect the remaining $100 even though he accepted the lesser sum as payment in full on the due date.

Religion affects business communication.

Operating activities:

A) Are the means organizations use to pay for resources like land,buildings and equipment.
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services.
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.
D) Are also called asset management.
E) Are also called strategic management.

Which of the following is true about asynchronous communication?

A) All the parties to the communication take part in the exchange at the same time.
B) A telephone conversation is an example of asynchronous communication.
C) A face-to-face conversation is an example of asynchronous communication.
D) Asynchronous communication is not possible in case of virtual teams.
E) The parties to the communication do not interact at the same time.

Upon which of the following propositions are supply-siders more likely to agree with Keynesians than with modern monetarists?

A) Rapid growth of the money supply generates inflationary pressures.
B) Raising government spending is the surest cure for a depression.
C) Transfer payments are expansionary because the poor have a higher marginal propensity to save than the rich.
D) Cuts in tax rates promote economic growth by the private sector.