According to the Coase theorem,the inefficiencies caused by externalities can be removed by the private sector if individuals enter into appropriately structured deals,provided that the transaction costs of such deals are sufficiently low.

Anne manages a cupcake shop and has noticed that the cupcakes are disappearing at a faster rate than the sales reflect. She has also noticed that her newest employee, Valerie, has been disappearing for long breaks. Using her ___ thinking, Anne follows Valerie to the parking lot, where she sees her take out three cupcakes from a paper bag and eat them on the spot.

A) multidimensional
B) strategic
C) cognitive
D) intuitive
E) sensation

Which of the following is NOT a potential risk of empowering leadership and empowerment programs?

A) less trust in the leader
B) customer feelings of inequity about unequal treatment
C) opposition by middle managers
D) inconsistent service quality

Setting the price of a new product higher than expected in order to recover development costs is known as ______.

A) penetration pricing
B) price skimming
C) psychological pricing
D) price lining

Mack Industries uses the perpetual inventory system. What is the entry to record a $450 merchandise purchase on account from Nickel Corporation?

A) Debit Accounts Payable for $450; credit Sales for $450.
B) Debit Purchases for $450; credit Accounts Payable for $450.
C) Debit Purchases for $450; credit Merchandise Inventory for $450.
D) Debit Merchandise Inventory for $450; credit Accounts Payable for $450.

In order to create a bailment,the bailor and bailee need not agree in writing to the existence of the bailment.