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NEW QUESTION 32
A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export. Which one of the following outcomes would not be consistent with me formation of a carter?

• A. An increase in the selling price of the manufactured product
• B. An increase in the output of the manufactured product
• C. A selling price where marginal revenue equals marginal cost
• D. An increase m the net profits for each of the individual cartel members

Answer: B

NEW QUESTION 33
Safety Strollers was recently sued by several people who alleged harmful and unsafe strollers. The management team was largely unconcerned about these lawsuits due to the apparent negligence of the plaintiffs However, a consumer grassroots effort Drought these dangers into the public eye and the management team now fears for their brand s reputation and the sales o' their products. The facts are staring to get distorted and some stores are electing to no longer carry this brand. This situation could best be considered a

• A. financial risk managed through product diversification
• B. catastrophic force that could have been managed better with a robust crisis management plan
• C. hazard loss mal can be mitigated with liability insurance
• D. cost of doing business mat the company's m-house legal counsel will hand.

Answer: C

NEW QUESTION 34
FumiSelf is a global manufacturer of consumer-assembled furniture with a business presence in nearly every country. The Vice President of Production was presented with the following information by the Vice President of Finance as of the end of the current quarter.

• A. African division is the most efficient in manage its inventory
• B. Europe division is the most inefficient in managing its inventory
• C. North American division has the lowest days' sales in Inventory.
• D. Asian division has the highest days' sales in inventory

Answer: B

NEW QUESTION 35
A foreign subsidiary of a U S company has an intercompany loan from the parent company. Which one of the following statements about the subsidiary's functional currency is true?

• A. It is the U S dollar because the subsidiary has an intercompany loan from the parent company
• B. It is the US dollar because the parent company is in the US
• C. It should be the U S dollar if the local currency is hyper inflated
• D. It should be determined by the management of the U.S. Company

Answer: C

NEW QUESTION 36
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