The CEO of Zebra Networking thinks that an advantage of the company's expansion into new markets is the additional profits due to economies of scale that the company will realize when selling to new markets
Which of the following, if true, strengthens the CEO's argument?
A) The company will sell enough units in foreign markets to make the endeavor profitable.
B) The company will not have to hire new employees or build additional production facilities to handle the greater output.
C) The number of customers for the company will greatly increase once it enters international markets.
D) The company will be able to sell its products internationally at prices that are higher than its domestic prices.
E) The cost of shipping its products internationally will be greater than shipping them domestically.
Answer: B
Explanation: B) An important economy of scale would result if current employees and facilities could produce larger quantities, thus lowering the per-unit cost of additional products. Choice A: Selling internationally might be profitable for reasons other than economies of scale. Choices C, D, and E all point to possible reasons that would not necessarily be accompanied by economies of scale.
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Which of the following persons can establish a traditional IRA? I. A person whose only income received is from investments. II. A 75 year-old man who has earned taxable income
A) I only B) II only C) both I and II D) neither I nor II
All of the following are circumstances under which withdrawals from a traditional IRA may be made prior to age 59.5 without incurring a substantial penalty EXCEPT
A) The withdrawal is in substantially equal installments paid over the individual's life expectancy. B) The withdrawal is used to pay living expenses after unemployment insurance benefits cease. C) The distribution is to the beneficiary of a deceased IRA owner. D) The withdrawal is because of income needed due to the individual's disability.