Under the Securities Litigation Reform Act of 1995, companies face reduced liability for inaccurate statements predicting future corporate performance

Ruth Company produces 1,000 units of a necessary component with the following costs:

Direct Materials $27,000 Direct Labor 16,000 Variable Overhead 4,000 Fixed Overhead 7,000 None of Ruth Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally? a) $46,000 b) $51,000 c) $58,000 d) $55,000

Franchising, a mode of entry into a foreign market, helps firms exert greater quality control over franchises in foreign locations

Indicate whether the statement is true or false.