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NEW QUESTION 41
Which of the following businesses is LEAST likely to locate its stores close to its competitors' stores?

• A. A home goods store which frequently offers sales
• B. An ice cream chain which has built strong customer loyalty due to its distinctive flavors
• C. A car dealership which sells a different brand of car than its nearby competitors
• D. A boutique clothing store which sells expensive but high-quality apparel

Answer: A

NEW QUESTION 42
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A manager at a large gold mining company is trying to determine how a series of recent events will affect the future of his industry.
The following events occur simultaneously:
Flooding damages several gold mines in a region.
The price of platinum, a substitute for gold, increases.
A new government policy mandates an increased wage rate for mine workers.
What should the manager expect regarding the new equilibrium price and quantity for gold?

• A. The equilibrium price increases and the effect on quantity is unknown.
• B. The equilibrium price increases and equilibrium quantity increases.
• C. The equilibrium price increases and equilibrium quantity decreases.
• D. The effect on price is unknown, and the equilibrium quantity increases.

Answer: A

NEW QUESTION 43
As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of
$300,000. Sales of the company are expected to increase by 10 percent for each of the next two years. If all current asset and current liability accounts increase proportionately with sales, what would be the projected current ratio of the company on Dec. 31, 2015?

• A. 2.00
• B. 2.42
• C. 1.65
• D. 2.20

Answer: A

NEW QUESTION 44
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