Answer:
a)
small facility:
initial outlay = -$9,000,000
present value of expected cash flows = (0.6 x $9,000,000) + (0.4 x $12,000,000) = $10,200,000
NPV = $10,200,000 - $9,000,000 = $1,200,000
large facility:
initial outlay = -$10,000,000
present value of expected cash flows = (0.6 x $12,000,000) + (0.4 x $15,000,000) = $13,200,000
NPV = $13,200,000 - $10,000,000 = $3,200,000
b) the best option is:
a. to build the large facility.the NPV of the large facility is significantly higher than the NPV of the smaller facility, while the required investment is not that different.
You have $135,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $49,000.
Required:
a. Does this create a disbursement float or a collection float?
b. What is your available balance?
c. What is your book balance?
Answer:
a. Does this create a disbursement float or a collection float?
A disbursement float occurs when you write a check and hand it out, but the person that receives the check hasn't cashed it yet. You do not owe the money anymore, but it still appears on your bank account.
b. What is your available balance?
your bank account balance = $135,000
c. What is your book balance?
book balance = $135,000 - $49,000 = $86,000
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:
March $160,800
April 152,800
May 139,000
Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 73% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Answer:
Total Cash Payments are as follows:
For March = $91,834
For April = $119,960
For May = $107,726
Explanation:
Note: See the attached Excel file for the schedule of cash payments
The expenses paid in each month are estimated as follows:
a. March Expenses
Paid in March = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of reminder paid = ($160,800 - $35,000) * 73% = $91,834
Paid in April = (Total projected selling and administrative expenses for March - Depreciation, insurance, and property taxes for March) * Percentage of balance paid = ($160,800 - $35,000) * (100% - 73%) = $33,966
b. April Expenses
Paid in April = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of reminder paid = ($152,800 - $35,000) * 73% = $85,994
Paid in May = (Total projected selling and administrative expenses for April - Depreciation, insurance, and property taxes for April) * Percentage of balance paid = ($152,800 - $35,000) * (100% - 73%) = $31,806
c. May Expenses
Paid in May = (Total projected selling and administrative expenses for May - Depreciation, insurance, and property taxes for May) * Percentage of reminder paid = ($139,000 - $35,000) * 73% = $75,920
If an investor has a fixed investment horizon, what type of security can be used to minimize both the price risk and the reinvestment risk?
Answer:
A zero coupon treasury bond
Explanation:
A zero coupon treasury bond having a maturity period matching the investment horizon of an investor can minimize both price risk and reinvestment risk. Reinvestment risk in case of a bond refers to reinvestment of the cash flows from the bond at a return close to current investment rate of return. As a zero coupon treasury bond do not pay any coupon payment, it won't carry any reinvestment risk.
The bond holder in case of a zero coupon treasury bond, receives a guaranteed payment at maturity of the bond. This payment is equal to face value or par value of the bond. Price risk (increase or decrease in a bond value due to interest rates) matters if a bond is sold before maturity.. However, on selling a bond at its maturity, price risk won't matter as the payment will be equal to face or par value.
Rent expense in Volusia Company's 2016 income statement is $420,000. If Prepaid Rent was $70,000 at December 31, 2015, and is $95,000 at December 31, 2016, the cash paid for rent during 2016 is:_________
Answer:
$445,000
Explanation:
The rent in Volusian company income statement for 2016 is $420,000
The prepaid rent is $70,000 at December 31 2015 and $95,000 at December 31 2016
Therefore the cash paid for rent in 2016 can be calculated as follows
= $420,000+($95,000-$70,000)
= $420,000 + $25,000
= $445,000
This firm is currently operating at 84 percent of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?
Answer:
Most of the numbers are missing, so I looked for a similar question:
The Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has current liabilities of $2,700, long-term debt of $9,800, net fixed assets of $16,900, net working capital of $5,000, and owners' equity of $12,100. All costs and net working capital vary directly with sales. The tax rate and profit margin will remain constant. The dividend payout ratio is constant at 40 percent. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?
if the firm is operating at full capacity, then it will need to raise new debt:
EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S = $24,600 / $28,400 = 0.866
ΔSales = $28,400 x 12% = $3,408
L/S = $2,700 / $28,400 = 0.095
PM = $2,250 / $28,400 = 0.079
FS = $28,400 x 1.12 = $31,808
(1 - d) = 1 - 40% = 0.6
EFN = (0.866 x $3,408) - (0.095 x $3,408) - (0.079 x $31,808 x 0.6) = $2,951.33 - $323.76 - $1,507.70 = $1,119.87
but if the firm is operating only at 84% (16% spare capacity), then it will not need to raise new debt:
EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S = $7,700 / $28,400 = 0.271
since there is 16% of spare capacity, no new fixed assets will be required
ΔSales = $28,400 x 12% = $3,408
L/S = $2,700 / $28,400 = 0.095
PM = $2,250 / $28,400 = 0.079
FS = $28,400 x 1.12 = $31,808
(1 - d) = 1 - 40% = 0.6
EFN = (0.271 x $3,408) - (0.095 x $3,408) - (0.079 x $31,808 x 0.6) = $923.57 - $323.76 - $1,507.70 = -$907.89
An optimal procedure for organizations to accept projects is to specify a return on investment (ROI) and fund only projects that meet this criterion. A. True B. False
Answer:
False
Explanation:
Capital budgeting is needed in any project work as it entails the process and procedures taken in evaluation and selection of long-term investments that are consistent with the firm's goal of maximizing owner's wealth.
Normally, before a company invest or undergo any project, background work is done to know if the project will yet profit or no, feasibility study is carried out and things are put in place. If it is favourable for the firm and profit is high, firms may choose to invest after weighing the pros and cons (advantage and disadvantage) of the project before investment. So return of investment initial investment is not really considered when taking up a project as all project is done at their own risk.
A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to:______. A) Tax policy and spending policy B) A progressive income tax and a welfare state C) Interest rates and the money supply D) Interest rates and tax rates
Answer:
Option A is the correct approach.
Explanation:
This is indeed a connection to compulsory tax and government expense stabilizers which weren't at the discretion including its government. Throughout the event of a recession, expenses are cut, rising discretionary income to something like the extent that the economic depression is pacified. Unemployment insurance, as well as other social programs, are consequently expanded without the clear intervention of the governmentThe other options offered are also not relevant to the scenario presented. So, the solution above is the right one.
Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?
Answer:
$120,000
Explanation:
The retirement benefit that Parker expects is
2% x number of years worked( 30 ) x {($200,000 +$150,000 +$250,000) /3}
=2/100 x 30 x (600,000/3)
=0.02 x 30 x $200,000
=0.6 x $200,000
=$120,000
Coronado Industries is purchasing new equipment with a cash cost of $189200 for the assembly line. The manufacturer has offered to accept $46000 payments at the end of each of the next six years. What is the interest rate that Coronado Industries will be paying? a) 10%. b) 12%. c) 11%. d) 13%.
Answer:
The correct option is b) 12%
Explanation:
Note: See the attached excel for the interest calculation.
In the question, we are given the following:
Equipment cash cost = $189,200
Yearly payment = $46,000
Number of years = 6
The above are used in the attached excel file to calculate the interest rate.
The interest rate is calculated using the following simple excel rate function in the attache excel file:
=RATE(npr,pmt,-pv)
Where;
pv = Present value = Equipment cash cost = $189,200
pmt = Yearly payment = $46,000
npr = Number of years = 6
Using the function in the attached excel file, we obtained 12%. Therefore, the correct option is b) 12%.
Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending.
For each form of private spending, indicate whether it represents consumption or investment.
Private Spending Consumption Investment
Laundromats buying washing machines
People buying houses
People buying newspapers
People buying food
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending Consumption Investment
Payment for public safety employees
Building hospitals
Building roads
Buying military equipment
Explanation:
Note, for private spending, consumption refers to purchases usually made for present needs, while investment refers to purchases that may provide. For government spending, consumption refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while investment purchases are done with the perceived future benefits in mind.
Private Spending
Laundromats buying washing machines = InvestmentPeople buying houses = InvestmentPeople buying newspapers = ConsumptionPeople buying food = ConsumptionGovernment Spending
Payment for public safety employees = InvestmentBuilding hospitals = InvestmentBuilding roads = InvestmentsBuying military equipment = InvestmentWhy should the people on the RA team be different from the people responsible for correcting deficiencies?a. to avoid potential losses.
b. to increase profitability.
c. to avoid conflicts of interest.
d. to increase survivability.
Answer:
The correct answer is the option C: To avoid conflicts of interest.
Explanation:
To begin with, the term of risk assesstment refers to the process of identifying and analyzing possible future threats that may cause harm to the individuals or the assets of the company and from there on to evalute possible solutions to those situation that the company does not want to. Moreover, the risk manager is the one who should take care of those aspects and therefore that an RA team is the one that is being under his commands and should focus on the fact of identifying and analyzing the problems as well as evaluating instead of correcting some of those deficiencies and therefore that they need to have a different mind in the theme because they need to avoid conflicts of interest with the other team that is responsible from correcting.
9.
How is nominal GDP converted into real GDP?
O by eliminating the effects of price increases on GDP growth
O by adding all incomes earned to total expenditures by consumers, businesses, and government
O by adding the contributions of American-owned factories in foreign countries
O by adding up all of the real purchases made in the economy
Answer:
by eliminating the effects of price increases on GDP growth
Explanation:
To correct for an increase in prices, economists establish a set of constant prices by choosing one year as a base year and using this base year to calculate real GDP for other years.
Why is it important to choose a bank that is a member of the FDIC? a. The FDIC is the regulatory body that licenses banks, so a non-FDIC bank is illegal. b. The FDIC is a union that prevents banks from taking advantage of customers, so you will receive better service with an FDIC bank. c. The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank. d. Only FDIC banks are legally allowed to issue loans, so if you ever anticipate needing a loan, you will need to use an FDIC bank. Please select the best answer from the choices provided A B C D
Answer:
(C) The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank.
Explanation: I completed the test and got a 100 on EDG. 2020
Answer:
c
Explanation:
Write 5 reasons why finding money to pay for college is important for you and your future.
1. Just in case your parents don't have enough money getting a job can help you pay for your collage yourself
2. When finding money after you are done you don't have to pay any student loans
3. Finding money can help you for your future cause if u pay for you collage you will have no stress and have extra money to buy important values
4. Finding money can help you get in a really good collage if u have enough
5. it makes you more determined and make you feel better about yourself
Not the best but here is a try
Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri's 2006 salary in 2001 dollars is:_______.a. $105,000.00. b. $46,666.67. c. $35,000.00. d. $61,950.00
Answer: $46666.67
Explanation:
From the question, we are informed that Henri earned a salary of $50,000 in 2001 and $70,000 in 2006 and that the consumer price index was 177 in 2001 and 265.5 in 2006.
For us to calculate Henri's 2006 salary in 2001 dollars, we have to multiply Henri's 2001 real salary by the price in 2001. This will be:
= (70000/265.5) × 177
= $46666.67
The lead time for an inventory item is 3 weeks and weekly dmand average 8000 units with SD of 1500 units for an item we deisire a 78% servcie level. what are our average requirements during lead time?
Answer:
24,000 units
Explanation:
Demand per period, = 8,000 units
Lead time, LT (in periods) = 3 weeks
Average demand during lead time = Lead Time * Demand per period
Average demand during lead time = 8,000 units * 3 weeks
Average demand during lead time = 24,000 units
Thus, our average requirements during the lead time of 3 weeks is 24,000 units
A formal document detailing the process to be followed when a firm recruits for an open position is a ________.a) recruiting guide.
b) staffing plan.
c) external recruiting analysis.
d) realistic job preview.
Answer:
a) recruiting guide.
Explanation:
Recruitment can be defined as an organizational process used by human resources managers to fill vacant positions existing within an organization through the acceptance of job applications from qualified candidates or applicants.
Generally, the main purpose and goal of a recruitment process is to give each and every candidate a fair opportunity, hearing and positive feelings about the recruiting organization.
A formal document detailing the process to be followed when a firm recruits for an open position is a recruiting guide. The recruitment guide is used as a laid down plan or guideline that typically identifies or highlights the goals, requirements and descriptions for each job position that is available within the organization.
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $260,000, variable expenses of $145,000, and traceable fixed expenses of $33,000. During the same month, the West business segment had sales revenues of $930,000, variable expenses of $488,000, and traceable fixed expenses of $177,000. The common fixed expenses totaled $262,000 and were allocated as follows: $131,000 to the East business segment and $131,000 to the West business segment.
The contribution margin of the West business segment is:
Answer:
=$422,000
Explanation:
As per the contribution margin concept, the contribution margin per unit is equal to the selling price per unit minus variable costs.
Therefore, the total contribution margin is the sales minus variable costs.
The contribution margin for the west will be sales($930,000) minus variable cost($488,000)
=$930 ,000 - $488,000
=$422,000
All of the following are true regarding long-term notes payable except:
a.The note’s carrying value at any time equals its face value minus any unamortized discount or plus any unamortized premium.
b.Notes payable are usually issued by a single lender.
c.The market rate of interest at the time of issuance determines the periodic cash payment amount.
d.Over the life of the note, the interest expense allocated to each period is computed by multiplying the market rate by the beginning-of-period balance.
e.The equal total payments pattern has changing amounts of both interest and principal.
A long-term note is a promissory note that reflects a loan from a bank or other creditor, option c. is not a long-term note.
What does it mean to have a long-term note?A long-term note is a promissory note that reflects a loan from a bank or other creditor, but a bond is a more complicated financial instrument that typically entails debt to a number of creditors.
Option c. The periodic cash payment amount is determined by the market rate of interest at the time of issuance.
Learn more about long-term notes here:
https://brainly.com/question/14803205
#SPJ2
Recruitment is an effort by an organization to keep employees and is the opposite of turnover.
a. True
b. False
Answer:
True
Explanation:
During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is:a. $65,000.b. $90,000.c. $120,000.d. $40,000.e. $25,000.
Answer:
a. $65,000
Explanation:
Calculation for the contribution margin for March
Total sales 160,000
Less total variable 95,000
Contribution margin 65,000
(160,000-95,000)
Therefore the The contribution margin for March is: $65,000
The following balances are available for Chrisman Company:
December 31, 2016 December 31, 2015
Cash $8,000 $10,000
Accounts receivable 20,000 15,000
Inventory 15,000 25,000
Prepaid rent 9,000 6,000
Land 75,000 75,000
Plant and equipment 400,000 300,000
Accumulated depreciation (65,000) (30,000)
Totals $462,000 $401,000
Accounts payable $12,000 $10,000
Income taxes payable 3,000 5,000
Short-term notes payable 35,000 25,000
Bonds payable 75,000 100,000
Common stock 200,000 150,000
Retained earnings 137,000 111,000
Totals $462,000 $401,000
Bonds were retired during 2016 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $35,000. Net income was reported at $26,000.
Required:
Prepare a statement of cash flows for 2016 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.
Answer:
Chrisman Company
Statement of Cash Flows for the year ended December 31, 2016
(using the indirect method):
Operating activities:
Adjusted cash from operations $61,000
Changes in working capital:
Accounts receivable -5,000
Inventory 10,000
Prepaid rent -3,000
Accounts payable 2,000
Income taxes payable -2,000
Short-term notes payable 10,000
Net cash from operating activities 73,000
Investing activities:
Equipment -100,000
Financing activities:
Bonds -25,000
Common stock 50,000 25,000
Net cash flows -$2,000
Explanation:
a) Data and Calculations:
December 31 December 31 Changes
2016 2015
Cash $8,000 $10,000 -$2,000
Accounts receivable 20,000 15,000 5,000
Inventory 15,000 25,000 -10,000
Prepaid rent 9,000 6,000 3,000
Land 75,000 75,000 0
Plant and equipment 400,000 300,000 100,000
Accumulated depreciation (65,000) (30,000) 35,000
Totals $462,000 $401,000
Accounts payable $12,000 $10,000 $2,000
Income taxes payable 3,000 5,000 -2,000
Short-term notes payable 35,000 25,000 10,000
Bonds payable 75,000 100,000 -25,000
Common stock 200,000 150,000 50,000
Retained earnings 137,000 111,000 26,000
Totals $462,000 $401,000
b) Net income $26,000
Depreciation 35,000
Adjusted cash from operations = $61,000
c) The statement of cash flows can be prepared using either the direct method or the indirect method. The indirect method affects mainly the operating activities section and starts with the net income and adjusts it with non-cash items before considering the changes in the working capital. The statement is a financial statement that classifies the cash flows during the period into three main categories: operating, investing, and financing activities. There are also non-cash flows involving accounts that do not cause any cash flows.
Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1909. It is now 2016.
Required:
a. If someone invested $1,000 in 1909, how much would that investment be worth today?
b. If an investment from 1903 has grown to $1 million, how much was invested in 1903?
c.
Answer:
a. If someone invested $1,000 in 1909, the investment's worth today is $185,035.48
b. If an investment from 1903 has grown to $1 million, the amount invested in 1903 is $4,032.82
Explanation:
a) FV (Future Value) $185,035.48
PV (Present Value) $1,000.00
N (Number of Periods) 107.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $1,000.00
Total Principal $1,000.00
Total Interest $184,035.48
b) You will need to invest $4,032.82 at the beginning to reach the future value of $1,000,000.00.
FV (Future Value) $999,999.00
PV (Present Value) $4,032.82
N (Number of Periods) 113.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $4,032.82
Total Principal $4,032.82
Total Interest $995,966.1
Spiro Corp. uses the sum-of-the-years' digits method to depreciate equipment purchased in January year 1 for $20,000. The estimated salvage value of the equipment is $2,000 and the estimated useful life is four years. What should Spiro report as the asset's carrying amount as of December 31, year 3
Answer:
Carrying value on Dec 31, Year 3= $3,800
Explanation:
Depreciable amount = Cost - Salvage Value
Depreciable amount = 20,000-2,000
Depreciable amount = $18,000
Sum of years’ digits = 1+2+3+4 = 10
Depreciation for Year 1 = 18,000*4/10 = 7,200
Depreciation for Year 2 = 18,000*3/10 = $5,400
Depreciation for Year 3 = 18,000*2/10 = $3,600
Carrying value on Dec 31, Year 3 = Purchase cost - Depreciation
Carrying value on Dec 31, Year 3 = $20,000 - $7,200 - $5,400 - $3,600
Carrying value on Dec 31, Year 3= $3,800
Many restaurants and food companies, such as Frito-Lay have made many of their products free of trans fat by changing cooking methods and oils used. Is it the responsibility of commercial industries to alter their product to keep us healthier or should we be more alert as consumers
Explanation:
It is essential that consumers are aware when choosing the companies they will consume, in relation to the food industries, it is necessary to be aware of how the food is prepared and if the ingredients will be good for our health.
In this case, the responsibility lies with the consumer, but companies follow consumer trends and consumer preferences, so it can be said that Frito-Lay has made its products healthier due to a new behavior by consumers, who are more willing to consume healthy products that generate health and well-being, then the company adapted to the market to remain competitive and profitable.
If a 7% increase in the price of cheese causes a 7% reduction in the total revenue received by cheese farmers, the demand for cheese is:A.Inelastic.B.Elastic.C.Unit elastic.D.Infinite
Answer:
C.Unit elastic
Explanation:
Unit elastic demand is the term that describes a scenario where a change in price causes a proportionate change in demand. It is one of the types of elastic demand. A good or service is said to have elastic demand if a small change in price causes a considerable change in the quantity demanded.
In the unit elastic demand, if a product price changes by a certain percentage, the demand will change by an equal percentage. In this scenario, a 7 percent price increase results in a 7 percent decrease in demand.
What are some types of performance that a manaer would have to control for a home health care agency? A. A health insurance companyB. A primary care clinicC. An outpatient surgery facilityD. A mental health counseling center E. A medical supply store
Answer:
A. A health insurance company
B. A primary care clinic
E. A medical supply store
Explanation:
Management control can be defined as how the role of various individuals and groups within an organization are being monitored, controlled, and regulated to perform specific actions and avoid other non-essential activities to accomplish the organization's goals.
For a health care agency, some types of performance the manager would have to control for a home health care agency are:
A health insurance company:
Their role is to ensure that high health care cost is made affordable to individuals.
They must also ensure that a top-notch health service is being provided to the patients.
A primary care clinic:
They are responsible for the prevention of disease outbreaks and counseling their clients about how to take good care of their health conditions.
A medical supply store:
They serve as an inventory supply unit that are liable for the distribution of medical supplies to the individuals.
Tommy, a teenage boy who earns money mowing lawns, observed that Thacker nearby property had become overgrown. Tommy decided to cut Thacker lawn for a reduced fee to encourage Thacker to become a regular customer. While mowing, Tommy saw Thacker come to the front window and wave from inside the house. Tommy returned Thacker’s wave and continued mowing. Upon completion of the job, Tommy knocked on the front door of Thacker’s home, expecting payment. Thacker refused to answer the door and shouted down from an upper story window: "I did not request you to cut my lawn and now you want me to pay you!"
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
B. An express contract was formed.
C. Both A and B.
D. No contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
A. Personal opinion.
B. Invitation to bid.
C. Product promotion advertisement.
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
A. Money/consideration to be paid.
B. Identification of the object or contract subject matter.
C. Description of parties.
D. All of the above.
4. Which is nota way that an offer can be terminated by action of the parties?
A. Offeror revokes (withdraws) offer after offeree’s acceptance.
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
C. The offeree rejects the offer.
D. The offeree counteroffers.
Answer:
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
D. All of the above.
4. Which is not a way that an offer can be terminated by action of the parties?
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
Explanation:
The contract existing between Tommy and Thacker can be implied or express. The legally-binding obligation that derives from the actions, conduct, or circumstances of Tommy and Thacker creates an implied contract with the same legal force as an express contract. On the other hand, an express contract is voluntarily entered into and agreed on verbally or in writing by two or more parties.
Archer, in Chicago, wrote to Ganze in New York City offering to purchase her antique car. When she received the letter, Ganze mailed an acceptance. After she mailed the letter, Ganze changed her mind and sent a telegram rejecting the offer. The acceptance letter reached Archer one day before the telegram. Did a contract result
Answer:
No
Explanation:
Remember, in business law, as long as both parties did not sign a contractual document, the purchase is not legal.
In this case, it could be observed that Ganze only "mailed an acceptance" not a signed document between both parties agreeing on the purchase of her antique car.
Also, the fact that she quickly sent a telegram letting Archer know that she is rejecting the offer, shows that she acted in good fate to withdraw her acceptance on time.
Assume that England and Spain can switch between producing cheese and producing bread at a constant Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese BreadEngland 2 3 12 8Spain 3 6 8 4Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then total production is:_________. a. 10 units of cheese and 6 units of bread. b. 25 units of cheese and 7.5 units of bread. c. 20 units of cheese and 12 units of bread. d. 12 units of cheese and 8 units of bread.
Answer:
a. 10 units of cheese and 6 units of bread.
Explanation:
Total there are 24 labor hours
So, for each there is 12 hours
Now the distribution is as follows
For england
= 12 ÷ 2 + 12 ÷ 3
= 6 units + 4 units
= 10 units
For Spain
= 12 ÷ 3 + 12 ÷ 6
= 4 units + 2 units
= 6 units
Hence, the correct option is a
And, the same is to be considered
All other options are wrong