Source credibility means that the person delivering the message, such as a doctor, is respected and believed

Green was unable to repay a loan from State Bank when due. State refused to renew the loan unless Green provided an acceptable surety. Green asked Royal, a friend, to act as surety on the loan. To induce Royal to agree to become a surety, Green fraudulently represented Green's financial condition and promised Royal discounts on merchandise sold at Green's store. Royal agreed to act as surety and the loan was renewed. Later, Green's obligation to State was discharged in Green's bankruptcy. State wants to hold Royal liable. Royal may avoid liability

A. If Royal can show that State was aware of the fraudulent representations. B. If Royal was an uncompensated surety. C. Because the discharge in bankruptcy will prevent Royal from having a right of reimbursement. D. Because the arrangement was void at the inception.

Ridley Corporation manufactures two styles of lamps—a Bedford Lamp and a Lowell Lamp

The following per unit data are available: Bedford Lamp Lowell Lamp Sales price $25 $35 Variable costs $17 $23 Machine hours required for one lamp 2 4 Total fixed costs are $40,000. Marketing data indicate that the company can sell up to 6,000 units of the Bedford Lamp and up to 6,000 units of the Lowell Lamp. Machine hour capacity is 25,000 hours per year. Which product mix will deliver the optimum operating income? A) 6,000 Bedford Lamps and 6,000 Lowell Lamps B) 3,000 Bedford Lamps and zero Lowell Lamps C) 6,000 Bedford Lamps and 3,250 Lowell Lamps D) 3,000 Bedford Lamps and 1,500 Lowell Lamps