Answer:
When the government lowers tax rates, both consumer spending and private investment increase, leading to an increase in economic growth which will in turn contribute to increase government revenue through a higher tax base.
Explanation:
For every dollar that an individual earns, two things happen:
propensity to consume: proportion of total income that individuals decide to spend instead of saving. Consumer spending increases private consumption. propensity to save: proportion of total income that individuals decide to save instead of spending. All the money individuals save become private investment.Max purchased a guitar for a total of $624, which consisted of the price of the guitar and the sales tax. Was the sales tax rate greater than 3 percent? The price of the guitar that Max purchased was less than $602. The sales tax for the guitar that Max purchased was less than $30.
Answer:
Yes the sales tax is higher than 3%, it is actually 3.65%.
Explanation:
If the price of the guitar that Max bought was $602 (without taxes) and he ended up paying $624 with taxes, then the taxes were $22 (= $624 - $602). The $22 represent 3.65% [= ($22 / $602) x 100] of the guitar's price, and yes it is less than $30.
Company LAX reported 115,000 of net income, a decrease of $40,000 of accounts receivable, a payment of interest of $20,000, an increase of $21,000 of accounts payable, an increase of $10,000 of prepaid assets and bought equipment for $4000. What is their net inflow of cash from operating activities?
Answer:
$125,000
Explanation:
Given
net income = $115,000
Decrease in accounts receivable = $40,000
Payment of interest = $20,000
Increase in prepaid assets = $10,000
Bought equipment = $4000
Net inflow of cash from operating activities = $115,000 + $40,000 - $20,000 - $10,000
= $125,000
The purchase of equipment is a part of financing activities and as such is not considered in the computation of the net inflow of cash from operating activities.
A method of estimating the amount of bad debt expense whereby management establishes a percentage relationship between the amount of receivables and the expected losses from uncollectible accounts is called _________________.
Answer: provisions
Explanation: According to ias 37
What is a business requirement?
A. The nonspecific business requests the system must meet to be successfulB. The specific business requests the system must meet to be successfulC. The nonspecific methodology the system must meet to be successfulD. The specific methodology the system must meet to be successful
Answer: The specific business requests the system must meet to be successful
Explanation: In order for two organizations/parties to successfully carryout business a set of request must be fulfilled beforehand, these needed requirements are known as business requirements.
Requirements such as: type of product to be sold, cost at which product is to be sold, number of product to be sold, shipping and handling etc.
The country of Growpaw does not trade with any other country. Its GDP is $20 billion. Its government purchases $3 billion worth of goods and services each year, collects $4 billion in taxes, and provides $2 billion in transfer payments to households. Private saving in Growpaw is $4 million. What is investment in Growpaw?a. $5 billion
b. $4 billion
c. $3 billion
d. $2 billion
Answer:
C) $3 billion
Explanation:
Step one: calculate disposable income
Disposable income = GDP - taxes collected + transfer payments
Disposable income = $20 - $4 + $2 = $18
Step two: calculate private consumption
Private consumption = disposable income - savings
Private consumption = $18 - $4 = $14
Step three: calculate investment
Investment = GDP - consumption - government purchases
= $20 - $14 - $3 = $3
If the U.S. government imposes a more restrictive import quota on Japanese video gaming systems, the ____________ curve for Japanese video gaming systems in the U.S. will shift ___________.
Answer:
The correct answer is: supply; leftward.
Explanation:
An import quota is a kind of trade restriction that limits the physical quantity of a good that can be imported on a country. In other words, an import quota reduces the equilibrium quantity supplied of imported goods.
A more restrictive import quota on Japanese video game systems will reduce the quantity of gaming systems imported. This reduction in the supply of video game systems will shift their supply curve to the left. The quantity of gaming systems will decline and their equilibrium price will increase.
Answer:
Supply curve shifts rightwards
Explanation:
Where there is import restrictions, there will be lower supply for an item hence the price will increase. Therefore, there will be a rightward shift in the supply curve.
Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on December 1, 2018, the board voted to declare a cash dividend of $5 per share to be paid on December 31, 2018, to shareholders of record as of December 16, 2018. Complete the necessary journal entry on the date of declaration by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
The journal entry for the same is shown below:
Explanation:
Retained earnings A/c.............Dr $500,000
Dividends payableA/c..........Cr $ 500,000
Cash dividend is declared by the board on 100,000 shares, therefore, the account of retained earnings is debited whereas the account of dividend payable is credited.
Working Note:
Amount = Shares × Price per share
where
Shares is 100,000
Price is $5 per share
= 100,000 × $5
= $500,000
Debit Credit
Cash 100,000 x 5 $ 100,000
Common Stock (100,000 x $ 5) $ 500,000
Paid Up Capital Exceeds the Value Set (100,000 x $ 5) $ 500,000
Further Explanation
Shares are securities or books which are a sign of ownership or equity participation in a company.
Stocks usually take the form of a piece of paper as proof. Shares can be obtained from the company concerned directly or from previous parties through the stock exchange (stock market).
Book Value of Shares
The book value of shares is the value of shares according to the company's books. The book value of the shares is obtained from the value of the remaining assets after deducting the company's liability if the shares are distributed. The book value shows the guarantee or how big the function of shares owned by investors. Some values related to book values include:
Nominal value is the value determined by the company for its shares. Agio share is the difference in price from an investor's payment to the company minus the nominal price of the stock. Capital value is the total amount paid by shareholders to the company, in the form of nominal value + share capital. Retained earnings are profits not distributed to shareholders which are used for investment as a source of internal company funds.Cash Flow for Shareholders:
If you buy shares, you can get cash in two ways, namely:
The company pays dividends We sell shares (to other investors in the capital market or to issuers/companies that sell their shares to the public) Like bonds, stock prices are the present value of expected cash flows.
Learn More
Common Stock brainly.com/question/13513598
Values of Shares brainly.com/question/13024270
Detail
Class: College
Subject: Business
Keyword: Stock, Journal, Debt-Credit
Desktop management__________.a. increases the cost of configuration management over the long termb. requires managers to install software manually on client computersc. automatically produces documentation of software installed on each client computerd. can not maintain documentation of software installed on each client computere. decreases costs in the short term
Answer:
C) automatically produces documentation of software installed on each client computer
Explanation:
Desktop management refers to managing all the company's computers. Even though the word desktop is used, it includes managing and overseeing all the devices of the organization including laptops, tablets and even smartphones. Desktop management is a part of systems management.
Ben is a member of the electricians' union, which is currently striking against Rawlings Manufacturing. However, Ben does not support the strike and does not want to participate, so he is continuing to work at Rawlings. As a result, Ben could be fined as high as ________ percent of his wages.
Answer:
60%
Explanation:
The union cannot prohibit Ben from going back to work but they can take disciplinary action against him for doing so. Federal courts have ruled in favor of different unions regarding disciplinary actions and as long as Ben remains a union member he can be fined, but not forced to resign. If Ben wants to avoid paying the fine, he should leave the union before going back to work.
Bramble Inc. reported total assets of $2405000 and net income of $331000 for the current year. Bramble determined that inventory was overstated by $23500 at the beginning of the year (this was not corrected). What is the corrected amount for total assets and net income for the year?
With an inventory overstatement of $23,500, the corrected total assets for Bramble Inc. would be $2,381,500, and the corrected net income would be $307,500 for the current year.
Explanation:When correcting for an overstatement of inventory, both total assets and net income must be adjusted. Given that Bramble Inc. initially reported total assets of $2,405,000 and net income of $331,000, we must subtract the amount by which inventory was overstated at the beginning of the year, which is $23,500.
Therefore, the corrected total assets amount would be $2,405,000 - $23,500 = $2,381,500.
Similarly, an overstatement of inventory would have resulted in an overstatement of net income since the cost of goods sold would have been understated. As such, the corrected net income would be $331,000 - $23,500 = $307,500.
An investor has purchased stock in a firm. The investor believes that , at the end of the year, there is
0.10 probability that the stock will show a $6,000 profit,
0.30 probability that the stock will show a $4000 profit and
0.60 probability that the stock will show a $2000 loss.
The expected profit is $600.
If the best profit increases by $1000 from $6000 to $7000, the expected profit?
A. Will remain unchanged
B. Will increase by $10
C. Will increase by $100
D. Will increase by a $1000
E. None of the above
Answer:
C) Will increase by $100
Explanation:
We can calculate the expected profit by adding:
$6,000 x 10% = $600
$4,000 x 30% = $1,200
-$2,000 x 60% = -$1,200
expected profit = $600
If best profit increases to $,7000 then the new expected profit will be:
$7,000 x 10% = $700
$4,000 x 30% = $1,200
-$2,000 x 60% = -$1,200
expected profit = $700
The new expected profit is $100 larger than the previous expected profit.
If Jill believes that she deserves the biggest paycheck at work, because she brought in the most client contracts, but she finds out that everyone was paid the same, she might believe what?
Answer: Injustice in payments
Explanation: From the question, Jill a sales representative raked in alot of sales for her firm where she is an employee. As a result of her outstanding sales performance, she was expecting the largest paycheck but received equal amount with other employees. This payment pattern would make feel Injustice occurred in her firm's payment pattern, because she feels she deserves more.
You have a portfolio that is invested 17 percent in Stock R, 38 percent in Stock S, and the remainder in Stock T. The beta of Stock R is .62, and the beta of Stock S is 1.17. The beta of your portfolio is 1.28. What is the beta of the Stock T?
Answer:
Beta of stock T is 0.0152
Explanation:
Given data:
weight of stock R is 17%
weight of stock S is 38%
hence weight of stock T is = 100 - (17+38) = 45%
Beta of stock R is = 0.62
Beta of stock S is = 1.17
Beta of portfolio is 1.28
we know beta of portfolio is given as
Beta of portfolio = weight of R × Beta of R + weight of S × Beta of S +weight of T × Beta of T
putting all value to get desired value of Beta of T[tex]1.28 = .17\times 0.62 + .38 \times 1.17 + 48 \times Beta_T[/tex]
Beta of stock T is 0.0152
Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
Answer:
The correct answer is 28 million.
Explanation:
In Marxist theory, the work force (or work capacity) is the set of physical and mental abilities, inherent in every human being, capable of being used for the production of a use value.1 It differs from work , which is the implementation of the workforce.
According to Marx's labor-value theory, the value of the labor force, like that of any other commodity, is determined by the socially necessary labor time to produce it. In this case, because it is a special commodity, its value is determined by the time of work socially necessary to produce the means of existence and reproduction of the worker, that is his and his descendants. This is the value of the mass of goods that constitute the average consumption basket of the working class. The value of the workforce includes a social, historical and cultural character. In a given time and society, we can consider that the value of the workforce is known. For Marx, the labor force can transcend according to what one can accumulate, since wealth is the origin of the bourgeois class and this in turn feeds the working class.
Since public relations communications are typically perceived as _____, they are not subject to the problems of clutter that are associated with other forms of promotional communication.
Answer:
news items
Explanation:
Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.
If society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with lower costs reduce greater amounts of pollution than those with higher costs.True or False?
Answer:
True
Explanation:
Some industries can reduce their pollution levels a lot at a small cost but others cannot, the cost of reducing their pollution levels is almost prohibitive. One way to solve this problem is not forcing all the industries to reduce their pollution levels equally, but rather promoting the reduction of pollution through tax incentives and trading pollution rights. This way, the industries that can reduce pollution at a low cost will be willing to sell their pollution rights to industries that aren't able to do it and maybe even make a profit out of it.
For example, industry A can reduce 10 units of pollution by spending $1,000 while industry B can reduce 10 units of pollution by spending $10,000. Industry A will be willing to sell its pollution rights to industry B for more than $1,000 per 10 units and industry B will be willing to buy pollution rights for less than $10,000 per 10 units.
Laura mentions that employees will come back from tea break on time because they know it will let down their fellow work mates if they don't. What consideration in building a group into an effective team does this example most closely embody
Laura's example represents peer pressure, social loafing, and the Hawthorne effect. The team is effective because peer influence prevents social loafing and members are observant of each other's behaviors.
Explanation:The example provided by Laura most closely aligns with the concept of peer pressure, which operates substantially in building an effective team in a work setting. Because the process of group formation in the workplace often involves peer influence, the fear of disappointing coworkers can encourage team members to be punctual and comply with the norms of the team.
Furthermore, this example also hints at aspects of social loafing, a tendency for individuals to exert less effort in a group because of reduced pressure. However, in Laura's case, the potential for social loafing seems to be mitigated by the presence of a responsible group ethos. Individuals are held accountable to their peers, creating an environment where employees are less likely to slack off, even when the possibility for individual performance evaluation is not present.
Lastly, these considerations resonate with the research encapsulated in the Hawthorne effect. This dynamic suggests that employees alter their behavior positively when they know they are being observed, and might apply to a situation where colleagues expect each other to return promptly from breaks.
Learn more about Effective Team Building here:https://brainly.com/question/29460849
#SPJ12
Conscious low-effort decision-making can follow a hierarchy of effects in which: Select one:______
a. selection of brands is done based on overall evaluations.
b. brands are selected after comparing the attributes of each brand.
c. thinking leads to behaving and results in feeling.
d. attention to marketing communications regarding that brand is evaluated.
e. only the product category information is carefully considered.
Answer: The correct answer is "c. thinking leads to behaving and results in feeling.".
Explanation:Conscious low effort decision making can follow a hierarchy of effects in which thinking leads to behavior and results in feeling. Because when making conscious decisions of low effort the consumer agrees to think and in turn these thoughts lead to feelings that are reflected in a behavior.
Jordan Industries produced 6,000 units of product that required 1.5 standard hours per unit. The standard variable overhead cost per unit is $2.75 per hour. The actual variable factory overhead was $29,000. Determine the variable factory overhead controllable variance.
a. $4,250 favorable
b. $4,250 unfavorable
c. $20,000 favorable
d. $20,000 unfavorable
Answer:
b. $4,250 unfavorable
Explanation:
The computation of the variable factory overhead controllable variance is shown below:
= Actual variable factory overhead - standard variable factory overhead
where,
Standard variable factory overhead equals to
= 6,000 units × 1.5 standard hours per unit × $2.75 per hour
= $24,750
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= $29,000 - $24,750
= $4,250 unfavorable
Organizations known as ________ have a significant role in the economic recovery. Some start-up businesses have successfully found sources of capital by going through one of these organizations.
A. ARMs (Adjusted Rate Mortgage lenders)
B. PACs (Personal Asset Collateral funds)
C. Venture Capitalists
D. CDIFs (Community Development Financial Institutions)
Answer:
D
Explanation:
The Community Development Financial Institutions Fund (CDFI Fund) plays a major role in causing economic growth and solutions in some of the nation’s most distressed communities. They offer tailored resources and creative programs that invest federal dollars alongside private sector capital, the CDFI Fund serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities.
Financing busineese, creating jobs building homes is a critical step in the transformation of a life, a family, and a community. This is real change. This is what the CDFI Fund does to the community.
Which of the following items is not included in either M1 or M2?
a. Money market mutual fund balances
b. Currency held by banks Savings deposits
c. Checkable deposits
d. Currency held by the public
Money market mutual fund balances are not included in either M1 or M2.
Explanation:The item not included in either M1 or M2 is a. Money market mutual fund balances. M1 and M2 are measures of money supply in an economy. M1 includes currency held by the public, checkable deposits, and traveler's checks, while M2 includes M1 plus savings deposits, small-denomination time deposits, and retail money market mutual fund balances.
Learn more about Money supply here:https://brainly.com/question/34673738
#SPJ3
In the context of M1 and M2, which are classifications of money supply, money market mutual fund balances do not fall under either category as they are considered investments, not liquid forms of money.
Explanation:In the context of economics and finance, the money supply (M1 and M2) represents different classifications of money based on liquidity. M1 includes the most liquid forms of money such as currency in circulation and checking deposits. M2 includes all components of M1, as well as those that are slightly less liquid such as savings accounts and non-institutional money-market funds.
In the list of items provided, money market mutual fund balances are not included in either M1 or M2. This is because this specific type of fund is considered an investment and does not possess the same liquidity as cash, checking deposits, or savings deposits, which are all considered forms of money in M1 or M2.
Learn more about Money Supply here:https://brainly.com/question/30218160
#SPJ3
Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,410,000, net cash used in investing activities of $207,390,000 (including cash spent for plant assets of $132,895,000), and net cash used in financing activities of $33,360,000. Dividends of $4,140,000 were paid. Calculate free cash flow.
Answer:
$18,375,000
Explanation:
The free cash flow is determined by adding all the cash that is generated by operating activities and subtracting capital expenditures. Capital expenditures include distributed dividends and cash spent for fixed assets.
free cash flow = $155,410,000 - ($132,895,000 - $4,140,000) = $155,410,000 - $137,035,000 = $18,375,000
Assume the securities are all issued by the same firm. From the investor's standpoint, rank the following securities in order of increasing risk (the number of the least risky security is placed first, or to the left, in the answer set).
(1) Preferred stock.
(2) Income bonds.
(3) Convertible preferred stock.
(4) Mortgage bonds.
a. 1, 2, 3, 4
b. 4, 1, 2, 3
c. 4, 1, 3, 2
d. 4, 2, 1, 3
e. 4, 2, 3, 1
Answer:
D) 4, 2, 1, 3
Explanation:
The investments are listed from least risk to highest risk:
Mortgage bonds: bonds that are backed up or secured by a pool of mortgages.Income bonds: the bond issuer only has the obligation to pay the face value of the bond, coupons are only paid if the company has certain income levelsPreferred stock: bond that guarantees a fixed dividend, and has priority over common bonds in case the company is liquidatedConvertible preferred stock: same as preferred stock only that they can be converted into common stockFinal answer:
From least to most risk, the securities are ranked: mortgage bonds, preferred stock, convertible preferred stock, and income bonds. The correct answer is option (b).
Explanation:
When ranking securities from least to most risk from an investor's standpoint, the correct order is mortgage bonds (4), preferred stock (1), convertible preferred stock (3), and income bonds (2). This order is based on the inherent risk factors of each type of security.
Mortgage bonds are backed by specific assets that serve as collateral, making them less risky. Preferred stocks, while not having the security of collateral, have priority over common stocks in terms of dividends and liquidation proceeds. Convertible preferred stocks bring additional risk due to the option to convert into common stocks, which fluctuate more. Income bonds are risky because their interest payments depend on the issuing company's profitability.
Miller’s Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy’s productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?a. 8b. 10c. 80d. 120
Answer:
The correct answer is option b.
Explanation:
A dairy is producing 960 gallons of milk per day.
Each milker works 8 hours and produces the same amount of milk.
For per hour of labor the diary produces 12 gallons of milk.
Quantity of milk produced by a labor in 8 hours
= [tex]Production\ in\ one\ hour\times No.\ of\ hours[/tex]
= [tex]12\times 8[/tex]
= 96 gallons
The number of workers required to produce 960 gallons per day
= [tex]\frac{Total\ daily\ Production}{Daily\ production\ by\ each\ labor}[/tex]
= [tex]\frac{960}{96}[/tex]
= 10 workers
To determine the number of milkers employed at Miller's Dairy, divide the total daily milk production by the productivity per hour, and then divide the result by the number of hours each milker works. The calculation yields 10 milkers as the correct answer.
Explanation:To calculate the number of milkers employed by Miller's Dairy, you can use the information given about the dairy's productivity and the total production. Miller's Dairy produces 960 gallons of milk per day. With each milker working 8 hours per day, and the dairy's productivity being 12 gallons of milk per hour of labor, we can find the total number of hours of labor required to produce 960 gallons in a day:
960 gallons per day / 12 gallons per hour = 80 hours of labor per day
Now, since each milker works for 8 hours a day, we can find the number of milkers by dividing the total hours of labor by the number of hours each milker works:
80 hours of labor per day / 8 hours per milker per day = 10 milkers
Therefore, the correct answer is b. 10 milkers.
All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT:
a. employees
b. competitors
c. regulatory agencies
d. suppliers
Answer:
The correct option is A that is employees
Explanation:
Strategic analysis is the analysis which involves the process of researching the business environment of the firm or organization within that it operates. It is important for executing the strategic planning for the working as well as for decision making of the organization.
The factors considered are the competitors, regulatory agencies and the suppliers.
Which of the following statements is (are) TRUE?
I. As market prices increase, industry output rises because individual firms have upward-sloping marginal cost curves.
b. II. As market prices increase, industry output rises because high-cost producers enter the industry.
c. III. As market prices increase, industry output rises because individual firms have upward-sloping short-run supply curves.
Answer:
All of the options are true.
Explanation:
I. As market prices increase, industry output rises because individual firms have upward-sloping marginal cost curves.
As the price of a product or service increases, suppliers will be willing to increase output because marginal costs should decrease as production increases (economies of scale).
II. As market prices increase, industry output rises because high-cost producers enter the industry.
As the price of a product or service increases, more suppliers will be willing to enter the market since the profit margins increase.
III. As market prices increase, industry output rises because individual firms have upward-sloping short-run supply curves.
As the price of a product or service increases, suppliers will be willing to increase production output because their profit margins should increase due to decreasing marginal costs, until they reach a limit where marginal costs start to increase and profit margins decrease.
A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions:
Source of capital / Taget Market Proportions / After-Tax Cost
Long-term Debt/ 40% / 6%
Preferred Stock / 10% / 11
Common Stock Equity / 50 / 15
The weighted average cost of capital is__________.
Answer:
11%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × after cost of debt + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.40 × 6%) + (0.10 × 11%) + (0.50 × 15%)
= 2.4% + 1.1% + 7.5%
= 11%
Simply we multiply the weightage with its cost so that the correct cost of capital can come based on weighted average
Final answer:
The Weighted Average Cost of Capital (WACC) for the firm is 11%, calculated by multiplying the cost of each source of capital by its target market value proportion and summing the results.
Explanation:
The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. To calculate the WACC, we multiply the cost of each capital component by its proportional weight and then sum the results. In the provided problem, the firm's WACC is calculated using the following equation:
WACC = (% of Long-term Debt × Cost of Long-term Debt) + (% of Preferred Stock × Cost of Preferred Stock) + (% of Common Stock Equity × Cost of Common Stock Equity)
By plugging in the given values:
WACC = (0.40 × 6%) + (0.10 × 11%) + (0.50 × 15%)
WACC = (0.40 × 0.06) + (0.10 × 0.11) + (0.50 × 0.15)
WACC = 0.024 + 0.011 + 0.075
WACC = 0.110 or 11%
Hence, the weighted average cost of capital for the firm is 11%.
Because _____ are purchased frequently, the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.
Answer:
Nondurable Goods.
Explanation:
Non-durable goods are tangible goods that are used only once or rarely. That is, they are those to be consumed immediately, for example chocolate, soap, ice cream, beer. These are frequently acquired assets, so strategic efforts should focus on distribution and availability to achieve strategic and economic benefits.
The Drof Motor Company has created an exciting new vehicle, the Terminator. One reason that the company is so excited about this vehicle is that once the 60,000-mile warranty ends, the vehicle will begin to experience mechanical problems generating more service income for the company. This behavior isA.illegal and ethical. B.legal and ethical. C.illegal and unethical
Answer:
legal but unethical
Explanation:
Based on the information provided within the question it can be said that this is both legal but unethical. This is because even though what the company is doing is not breaking any laws, it is still wrong because they know about the imminent failure of their product function before release and are not fixing it because it will generate them more income as people begin to bring the products in for fixing, which they will get charged for.
**There might be an answer choice missing which is the correct answer that i mentioned above for this question**
Bruce went shopping at the Hermes store in New York City. This is a very high-end fashion store. When he entered the store, an associate asked him what he was looking for. She then escorted Bruce to the neckwear department and had him sit (with a cup of coffee) while she brought out a selection of neckties she thought he might like. After Bruce paid for the neckties, the store had the packages shipped to Bruce's hotel. This is an example of _____________ retailing
Answer: Full service
Explanation:
The full service retailing is the process which mainly focus on the services during the production of the products or goods rather than the goods.
The full service retailing mainly focus on storing the informative sales that focus on the high retaining prices and it is customer friendly. The full service retailing is the relationship between the services provider and the customers.
According to the given situation, the Bruce situation clearly depict about the full service retailing process.