Answer:
Option B
The party which is more likely to prevail is the seller, because the buyer has no basis on which to rescind the contract.
Explanation:
A contract is a lawful agreement in which there is two person which is enforceable by law. In this contract there is agreement, consent, lawful consideration, rules and regulations have existed
Now according to the real estate contract there is a contract of
a. Money from the client
b. Title for real estate
So as per the situation give, the option is correct as the buyer has no reason for cancel the contract
Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the latest copy of National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This decision by Geraldo is an example of:
Answer: Impulse buying
Explanation:
Impulse buying could be defined as the act of buying an item in a market unplanned. This happens when you saw something at the market that caught your fancy or that you really needed but didn't remember to budget for it when going to the market for shopping, many times this affects your plan or budget because it's not planned but since it's a need, then they're worth it most times. This an example of what Geraldo did at the mall.
When Dave, Dan, and Darwin lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. Darwin was a single guy with two other residential properties that he rented out. Dan and Dave had families with college-age children; they owned their homes, and Dan had a wife who worked at a professional job. All three were concerned about the risk involved in owning their own business, particularly the risk of losing personal assets. As their advisor, which of the following forms of business ownership would you recommend?
a) Limited liability company
b) Sole proprietorship
c) General partnership
d) Master limited partnership
Answer:
a) Limited liability company
Explanation:
Limited liability company is one of the specific types of business structure that is followed in the United States. This structure excludes the partners or the owners to possess the liabilities of the debts and liabilities of the company. This will help the partners limiting the liabilities. An agreement is made which helps in the protection of the liabilities. The owners' personal assets are separated from the asset of the company thereby reducing the debts and liabilities.
In the given excerpt, the best advice to be given to the partners, Dave, Dan, and Darwin as an advisor would be to adopt a limited liability company. This would help them not to keep their personal assets in stake for their business.
A firm's marginal cost curve Group of answer choices always has a positive slope. always intersects its average cost curve at its minimum point. is always below its average cost curve. is always U-shaped.
Answer:
The correct answer is the first option: Always has a positive slope.
Explanation:
To begin with, the marginal cost curve of a firm is the graphical representation the relationship between the last unit produce and the cost of producing it. Therefore that this concept shows how much it cost to the company to produce one more unit of the product. Moreover, due to the fact that the relationship between the production and its costs are directly, the slope of the curve will be always positive, meaning that if the production increases then obviously the costs will increase but the cost per unit might decrease due to the volumen handle by the organization.
_____________which refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well-run organizations compare not only against competitors (where possible) but against best-in-class organizations as well.
Answer:
Benchmarking.
Explanation:
Benchmarking refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well-run organizations compare not only against competitors (where possible) but against best-in-class organizations as well.
This ultimately implies that, benchmarks are used to measure a firm's products, services, or processes performance in comparison with another business firm that are considered or assumed to be the best in that industry.
Hence, many business firms use benchmarking as a tool to identify and explore opportunities lying within them (internal opportunities).
Concord Corporation applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $7000. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is 25000?
Answer:
the amount of direct materials charged to Job 130 is $9,250.
Explanation:
Calculation of direct materials charged to Job 130
Work In Process Inventory $25,000
Less Manufacturing Overhead ($7,000)
Less Labor ($7,000 × 100 /80) ($8,750)
Direct materials charged $9,250
"A 65-year old retired teacher living on a pension has $200,000 invested in 2 year certificates of deposit that are yielding 4%. $20,000 of the CDs are maturing and the customer wants to diversify into an investment that gives a higher return and a moderate level of risk. The BEST recommendation would be:"
Answer:
Equity REIT's
Explanation:
In this scenario, it can be said that the best recommendation would be Equity REIT's. These are Real Estate Investment Trusts. REIT's tend to pay a higher dividend yield than most other types of stocks since they have been structured to generate net rental income. While maintaining the risk level moderate due to the underlying diversification of the trust itself. Therefore since the yield is higher and the risk level moderate this is the best next investment for the teacher to get into.
A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimated $100 of the bill. What should appear on the closing statement?
Answer:
Dr Seller Account $100
Cr Buyer Account $100
Explanation:
The property sold on 15th of the month by Mr. A to Mr. B and the utility bill received later of this month would be split between Mr. A and Mr. B. The basis for the split of the utility bills would be the share that Mr. A utilized the facilities and in this scenario, it is $100. Hence the buyer Mr. B has receivable of $100 and the seller Mr. A has a liability payable of $100 amount.
Hence the buyer will debit the bill by $100 receivable and the Seller will debit the bill owed to buyer by $100.
Hancock Company has 900,000 shares authorized and 350,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $20 per share. If Hancock Company declared and distributed a 30% stock dividend, what journal entry would the company make
Answer:
Dr Retained Earnings 210,000
Cr Common Stock 210,000
Explanation:
Based on the information given we were told that the company has 350,000 shares issued with an outstanding of its $2 par value of common stock which means that if Company declared and as well distributed a 30% stock dividend, the transaction will be recorded as
Dr Retained Earnings 210,000
Cr Common Stock 210,000
(350,000 Shares *$2 par value common stock)
=$700,000*30%
=$210,000
Supply is defined as: A) the maximum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant. B) the maximum amount of a product that sellers are willing and able to provide for sale over a particular time period at various prices, holding all other relevant factors constant. C) the minimum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant. D) the minimum amount of a product that sellers are willing and able to provide for sale over a particular time period at various prices, holding all other relevant factors constant.
Answer:
B
Explanation:
supply is the amount of goods and services that suppliers are willing to supply over a given range of price holding all other factors constant.
the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Demand is the maximum amount of a product that buyers are willing and able to purchase over a particular time period at various prices, holding all other relevant factors constant.
Gondola Granola is an American health food grocery store chain with locations in 20 countries. When the company enters a new foreign market, it usually selects a combination of franchising and master subsidiaries. These master subsidiaries are joint ventures with local partners. Specifically, these joint ventures are politically more acceptable and they:________
a. help realize location and experience curve economies
b. avoid high transport costs.
c. ensure a steady stream of royalty payments.
d. tend to provide a higher control over technology
e. bring a degree of local knowledge to the subsidiary
Answer: e. bring a degree of local knowledge to the subsidiary
Explanation: According to the scenario described above, Gondola Granola having location in 20 countries makes it a foreign company in most of its countries where it is located. In other to thrive, Gondola Granola is partnering with local stores or companies (domestic companies in that country), this enables Gondola Granola to scale through most policy which might have hampered foreign establishment, These local partner also provides the required local knowledge or finesse which could aid Granola to thrive as they are more familiar with the culture of the country than the subsidiary.
Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the UK food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance. This scandal results from ____________ and __________.
Answer:
Poor governance and Control
Explanation: The overstatement of profit made by TESCO, a renowned grocery chain in the U. K could largely be traced to the poor internal structure governing the setup which demonstrated high level of ineptitude in the control and anchoring the of the firm's activities. In a bid to increase profit and market standing, TESCO embarked on an aggressive financial strategy whereby income was doctored and suppliers tricked into making payment in other to up the company's earning figure. This act explains how disjointed the upholding structure within the company was at the time.
Flipco signed a 10-year note payable on January 1, 2018, of $ 800, 000. The note requires annual principal payments each December 31 of $ 80, 000 plus interest at 5%. The entry to record the annual payment on December 31, 2019, includes:___________
A. a debit to Interest Expense for $ 36, 000.
B. a debit to Interest Expense for $ 40, 000.
C. a credit to Notes Payable for $ 80, 000.
D. a credit to Cash of $ 120, 000.
Answer:
A. a debit to Interest Expense for $ 36, 000
Explanation:
Based on the information given we were told that Flipco has note payable on January 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5% interest. This means that the Journal entry to record the transaction on December 31, 2019 will includes a Debit to interest expense for $36,000 calculated as :
Interest expense= $800,000-$80,000
Interest expense=( $720,000* 5%* 12/12)
Interest expense =$36,000
Therefore the Journal entry to record the annual payment on December 31, 2019 will includes :
A Debit to interest expense for $36,000
A barcode scanning device manufacturer tried several times to update its products, but each of the attempts failed, leaving the company weaker and weaker in the process. Now, unless something remarkable happens, the company is facing bankruptcy.
A. Dissolution
B. Inaction
C. Crisis
Answer:
C. Crisis
Explanation:
Since in the question it is mentioned that the barcode device for scanning is used for several times for updating the products but every attempt failed due to which the company become weaker and weaker
So this situation represents the crisis that declines the company as all the company resources are depleted and only some remarkable could able to save the company
Hence, the correct option is c.
Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprises behalf. This is
Answer: An agency relationship
Explanation:
An agency relationship is defined as
A relationship where a person known as a principal gives legal permissions to act on his or her behalf. It is a kind of fiduciary relationship.Here, the agent is a subject in the command of the principal and has to follow his or her instructions.Here , agent = Global Enterprise empowers Alem, Ltd.
principal = Global Enterprises
Hence, the correct answer is "an agency relationship".
A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:
Answer:
The marginal product of fifth worker = 50 gallons.
Explanation:
4 workers produce = 450 gallons of milk
5 workers produce = 500 gallons of milk
The marginal product of fifth worker can be calculated by subtracting the total product when there are 4 workers from the total product when there are 5 workers.
The marginal product of fifth worker = 500 – 450 = 50 gallons.
An increase in the labor force participation rate A. is consistent with either a rise or a fall in the unemployment rate. B. means there are more discouraged workers. C. implies that the unemployment rate must rise. D. implies that the unemployment rate must fall.
Answer:
A. is consistent with either a rise or a fall in the unemployment rate
Explanation:
A labour force participation rate is the rate that gives the percentage of the labour force that is employed.
the unemployment rate is the percentage of the labour labour fore that is unemployed.
A rise in the labour force means that more labour is employed. it could either mean that the number of unemployment is reducing or that the number of discouraged workers have increased.
Discouraged workers are workers that have given up looking for job and are not counted as part of the labour force
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,100 account of a customer, C. Green. On March 9, it receives a $1,600 payment from Green.
Prepare the journal entry or entries for January 31.
Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.
Answer: Please see answer in explanation column
Explanation:
a) Journal entry to write off an uncollectible amount.
Date Account Debit Credit
Jan 31st Allowance for doubtful accounts $2,100
Accounts receivable—C. Green $2,100
b) Journal to record recovery of the bad debt.
Date Account Debit Credit
Mar 9 Accounts receivable—C. Green $1,600
Allowance for doubtful accounts $1,600
c) Journal to record payment on account.
Date Account Debit Credit
Mar 9 Cash $1,600
Accounts receivable—C. Green $1,600
BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost
Complete Question:
BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?
a. 50%
b. 75%
c. 30%
d. 100%
Answer:
a. 50%
Explanation:
In this scenario, BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is 50% of total distribution cost.
In supply chain management, the total distribution cost can be defined as the overall expenses incurred by a manufacturer in the process of delivering finished goods and services from the production stage to the final consumer. The total distribution cost can either be direct or indirect expenses incurred on insurance, handling, storage, shipping, packing and logistics.
Generally, the total amount spent on the movement of goods and services from one location to another, usually accounts for half (50%) of the overall expenses incurred in total distribution cost.
A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by Multiple Choice cutting its price to levels significantly below the prices of rivals. using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold. going all out to use its cost advantage to capture a dominant share of the market. spending heavily on advertising to promote the fact that it charges the lowest prices in the industry. outproducing rivals and thus having more units available to sell.
Answer: using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold.
Explanation:
A low cost leader is a type of leader that is concerned with giving out low prices for its customers.
It should be noted that a low-cost leader can translate its low-cost advantage over rivals into superior profit performance by using the low-cost edge in order ro underprice its competitors. Also, the low cost strategy will lead to more profit.
Business strategy sets the overall direction for the business; while the IT strategy defines what information, ISs, and architecture are needed to support the business and how infrastructure and services are to be delivered. Select one: True False
Answer:
True.
Explanation:
Business strategy sets the overall direction for the business; while the IT strategy defines what information, information system strategy (ISs), and architecture are needed to support the business and how infrastructure and services are to be delivered.
Business strategy sets the overall direction for the business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
The information technology (IT) strategy is an integral part of the business strategy because it presents the technological or technical framework and infrastructure required to achieve a successful business plan, objectives, mission and goals.
Consider the following year-end information for Spitzer Corporation: Cost of goods sold $420,000 Sales revenue 800,000 Nonoperating expenses 10,000 Operating expenses 170,000 Income tax expense 80,000 What amount will Spitzer report for operating income
Answer:
$210,000
Explanation:
operating income or EBIT = net sales revenue - cost of goods sold - operating expenses
in this case:
EBIT = $800,000 - $420,000 - $170,000 = $210,000
net income = EBIT - non-operating expenses - income taxes = $210,000 - $10,000 - $80,000 = $120,000
Assets Liabilities and Net Worth
Reserves $40,000 Checkable Deposits $130,000
Loans 25,000 Stock Shares 45,000
Securities 110,000
Assume the Continental National Bank's balance statement is as shown in the accompanying table. Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it?
a. $16,000.
b. $3,000.
c. $6,000.
d. $24,000.
Answer: c. $6,000.
Explanation:
Given: Checkable Deposits = $130,000
Amount Withdrawal = $10,000
Then, the new checkable deposit = (Checkable Deposits) - (Amount Withdrawal)
= $130,000-$10,000= $120,000
Reserves = 20% × (new checkable deposit)
=20% × $120,000 = $24,000
New reserve = (Reserve)-(Amount Withdrawal)
=$40,000 - $10,000 = $30,000
Excess Reserve = (New reserve) - (Reserves )
= $30,000 – $24,000 = $6,000
i.e. Excess reserve in bank is $6,000.
Hence, the correct answer is c. $6,000.
Sally, Greg, John, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The four members are located throughout the Midwest, and they are utilizing the phone, e-mail, and collaborative computing to complete this project. This is an example of a _____.
Answer: Virtual organization
Explanation:
Virtual organization is a firm of organization whereby the members or the employees are geographically apart and not at the same place and therefore communicates by using their e-mails, phones, collaborative computing, or any other means of communication.
The virtual organization is what is being used by Sally, Greg, John, and Amar in the question above.
Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant?
A. Growth in earnings requires growth in dividends.
B. Retaining a higher percentage of earnings will result in a higher growth rate.
C. Long-run earnings growth occurs primarily because firms pay dividends to reward their shareholders for investing in the company.
Answer:
Statement B. Retaining a higher percentage of earnings will result in a higher growth rate.
Explanation:
The earnings are the profits that is left after paying interests and taxes and now all we have to do is pay the dividend. The company pays a percentage of earnings after tax as a dividend and the remainder is reinvested in the business. This helps the company to increase its earnings by reinvestment so that the company is able to lead in the market.
The earnings of the company are not affected by the dividend payout if the working capital is not affected because dividends are dependent on earnings. Hence the statement 1 is incorrect.
This means that the retaining higher percentage of earnings will increase the growth rate as the reinvestment has increased and it will increase the earnings. Hence the statement 2 is correct.
Company doesn't pay dividend to shareholders for reinvestment in the company. They pay dividends because the shareholders demand return on the risk associated with the investment. Hence the statement 3 is incorrect.
In Latuna, it takes 10 resources to produce 1 ton of coffee and 13.5 resources to produce 1 ton of wheat. In South Narnia, it takes 40 resources to produce 1 ton of coffee and 12 resources to produce 1 ton of wheat. Latuna has a comparative advantage over South Narnia in:__________.
A. wheat
B. neither coffee nor wheat.
C. both coffee and wheat.
D. coffee
E. both coffee and wheat if combined.
Answer:
A
Explanation:
a person has comparative advantage in production if he / she produces at a lower opportunity cost when compared to other countries.
for latuna,
opportunity cost of producing 1 ton of coffee = 13.5 / 10 = 1.35
opportunity cost of producing 1 ton of wheat = 10 / 13.5 = 0.741
for South Narnia,
opportunity cost of producing 1 ton of coffee = 12 / 40 =0.3
opportunity cost of producing 1 ton of wheat = 3.3
south narnia has a comparative advantage in the production of coffee and latuna has a comparative advantage in the production of wheat
The Benson Bearing Company sells Textron, Inc. a quantity of baseball bats that were stored in an independent warehouse at the time of the sale. The contract says that Textron is to pick up the bats at the warehouse. The risk of loss passes to Textron:
Answer:
at the time it receives a negotiable warehouse receipt for the bats.
Explanation:
Benson Bearing Company is selling bats to Textron inc. The bats are stored at an independent warehouse not controlled by Benson Company.
Of the contract states that Textron will pick up the bats at the warehouse, the risk of loss passes to Textron when it recieved a negotiable warehouse reciept for the bats.
This is because the warehouse is not controlled by Benson Company and issuing a warehouse reciept is equivalent to delivering the goods to Textron.
Suppose OPEC succeeds in raising world oil prices by 300 percent. This price increase causes inventors to look at alternative sources of fuel for internal-combustion engines. A hydrogen-powered engine is developed which is cheaper to operate than gasoline engines. Which problems in the construction of the CPI does this situation represent?
Answer:
A. Substitution bias and the introduction of new goods.
Explanation:
The Consumer price index is a measure of the overall cost of goods and services (usually measured in fixed basket), purchased by a consumer in a year as compared to previous years. It gives the government and economists an idea of the cost of living of individuals in a nation. Some problems of the CPI include
1. Substitution Bias: The CPI assumes that prices of goods and services change in a fixed way as the years go by. It also does not consider the fact that sometimes some customers have preference for expensive items compare with the less expensive items. This is reflected in the OPEC case where it is automatically assumed that customers would prefer the cheaper hydrogen-powered engines to the gasoline engines.
2. Introduction of New goods: The CPI fails to recognize that new goods would enter a market because the CPI assumes a fixed basket of items and products. The introduction of new goods would affect comparisons to previous years' CPIs. The new good invented in the above case is the hydrogen-powered engine.
Albert purchased a tract of land for $140,000 in 2016 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2019 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2019? a.$100,000 b.$60,000 c.$40,000 d.$80,000 e.None of these choices are correct.
Answer: e.None of these choices are correct.
Explanation:
From the question, we are informed that Albert purchased a tract of land for $140,000 in 2016 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2019 and the value of the land fell to $100,000.
Albert cannot claim any loss as there was no transaction. We were not told the he sold the land so neither did he gain or make a loss.
Several controls are used to safeguard inventory except a.keeping high-priced inventory behind lock and key. b.hiring security guards. c.allowing all employees access to the materials warehouse. d.installing sensors at all exits.
Answer:
Option C, allowing all employees access to the materials warehouse, is the right answer.
Explanation:
Option C is the correct answer because option C recommends allowing access to all the employees. However, allowing access to all employees will reduce security and increase the risk level. While all given options are helpful in safeguarding the inventory except option C. Thus, in this case, it would be difficult to monitor every employee. So Option C is the right answer.
Grayson was employed as a field technician servicing building HVAC systems, but because of a downturn in the economy, he was laid off from his job. After unsuccessfully trying to secure another field tech position, Grayson finally took a job as a stock employee at Home Depot. Which of the following best describes Grayson's situation?
A. Grayson is underemployed.
B. Grayson is seasonally unemployed.
C. Grayson has downsized.
D. Grayson has secured job enrichment.
Answer:
A. Grayson is underemployed.
Explanation:
Underemployed defines that when a person is skilled but not able to utilize their ability and skills for some reason or not get enough money for it.
Therefore according to the given scenario, Grayson was skilled in the filed of technician but unfortunately because of economy Garyson was laid off by the company. After trying a lot to get the job in his field he was unsuccessful then he pick a job of stock employment which indicates that field is not of his use as it is of another field or Grayson is underemployed.
So, from the above description the right answer is A