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NEW QUESTION 37
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. hazard loss mal can be mitigated with liability insurance
• B. cost of doing business mat the company's m-house legal counsel will hand.
• C. financial risk managed through product diversification
• D. catastrophic force that could have been managed better with a robust crisis management plan

Answer: A

NEW QUESTION 38
Javier makes hand-looted learner dog collars. The materials cost $10 per collar and the collars are sold for $50 each. Javier sells me collars at a local farmer's market mat charges S100 per month for space rental if Javier's income tax rate is 30%, how many collars must Javier sell each year to earn $1,000 net income?

• A. 0
• B. 1
• C. 2
• D. 3

Answer: C

NEW QUESTION 39
A company manufactures two products Product X and Product Y, during a joint process Product Y canoe processed further to create Product Z Relevant data are shown below.

• A. Product y should not be processed further because an additional S35 000 loss can be achieved by processing further
• B. Product Y should be processed further because me selling once of Product Z Is higher than Product Y
• C. Product Y should be processed further because an additional $45,000 prof* can be achieved by processing further
• D. Product Y should he processed further because an additional S5.000 profit can be achieved by processing further

Answer: D

NEW QUESTION 40
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