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1. 2. 3. 4. 5. Business ethics: Select one: O A. Deals exclusively with the ethical behaviour of stakeholders and shareholders. O B. Can by

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Business ethics: Select one: O A. Deals exclusively with the ethical behaviour of stakeholders and shareholders. O B. Can by understood from two perspectivespreventative and prohibitive. O C. Involves applying ethical and moral standards to business behaviour. O D. Should be applied as a separate set of moral standards from general ethics. Picard Corp. has revenues of $500,000 resulting in an operating profit of $54,000. Invested assets total $600,000. Residual income is $18,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. Select one: O A. $23,400 O B. $0 C. $36,000 D. $3,240 Picard Corp. has sales revenue of $500,000 resulting in operating income of $54,000. Average invested assets total $600,000, and the cost of capital is 6%. Calculate the return on investment if sales increase by 10% and the profit margin and invested assets remain the same. Select one: A. . 9.0% B. 9.9% OC. 6.0% OD. 10.8% UMUC Corp. has two divisions, Europe and Asia. Europe produces a widget that Asia could use in its production. Europe's variable costs are $2 per widget while the full cost is $3.50. Widgets sell on the open market for $6 each. If Europe has no excess capacity, what would be the maximum transfer price if Asia currently is purchasing 100,000 units on the open market? Select one: a. $2.50 O b. $6.00 c. $3.50 O d. $2.00 Chipper Division of Acme Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. Chipper has a capacity to produce 100,000 units per period. Jones Division currently purchases 10,000 units of part Z-25 from Chipper for $40. Jones has been approached by an outside supplier willing to supply the parts for $36. If Acme uses a negotiated transfer pricing system, what is the minimum transfer price that should be charged for this transaction? Select one: A. $36 B. $40 OC. $22 O D. $32

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