Answer:
The correct answer is option D.
Explanation:
Due to the recession in the US, if the workers from foreign countries go back to their countries until the recession has ended, this will increase the availability of labor for the home country.
As the supply of labor increases, the nominal wages will decline. It will become cheaper for firms to hire more workers. As firms hire more and more workers, they will be able to produce more. So the short-run aggregate supply curve of the home country will move to the right.
Foreign workers leaving the U.S. during a recession causes the SRAS curve to shift to the left, reflecting decreased production capacity due to reduced labor availability.
Explanation:When foreign workers leave the United States during a recession to find work in their home countries, the labor force in the U.S. decreases. Since firms are hiring a lower quantity of labor at any given wage during a recession, the labor demand curve shifts to the left. This change corresponds to a leftward shift in the short-run aggregate supply (SRAS) curve because the total production capacity of the economy declines when there are fewer workers. This shift reflects a reduction in the immediate output capability of the economy without changing the price level, which is a different event than moving along a stationary SRAS curve due to changes in the price level.
The correct answer to the student's question is A. shift the short-run aggregate supply curve of the home country to the left. This happens because the decrease in available labor reduces firms' capacity to produce goods and services. Changes in aggregate demand can lead to cyclical unemployment, which is the variation in unemployment caused by the business cycle, moving from expansion to recession or vice versa. However, a shift in the SRAS curve represents a change in the quantities that suppliers are willing to produce at every price level, not just cyclical unemployment.
Financial leverage_________.
I. increases expected ROE but does not affect its variability.
II. increases breakeven, like operating leverage, but increases the rate of earnings per share growth once breakeven is achieved.
III. is a fundamental financial variable affecting sustainable growth.
IV. increases expected return and risk to owners.
A) I and II only.
B) I and III only.
C) II and IV only.
D) II, III, and IV only.
E) I, II, III, and IV.
F) None of the above.
Answer:
D) II, III, and IV only.
Explanation:
Financial leverage arises when a company uses levered funds that is debt funds to finance the assets needed by the company.
In this manner the cost of equity increases, but the cost of debt helps in increasing the Earnings per share.
It in any manner increases the cost of operating as debt provides for cost of interest to be paid, which is not avoidable.
It is a financial cost as it provides finance to the company, and the charges in the form of interest even provide for tax benefit.
This, after increasing the operating cost increases the expected return of the equity holders, also the risk is increased with increased cost of operating the business.
According to salary, the average salary for a software engineer level III (a higher-level position in software design and implementation) in the Silicon Valley area of California is $108,244. However, Google pays its level III software engineers an average salary of $124,258. Why does Google pay a salary higher than the equilibrium salary for equivalent positions in the same area?
Answer:
Google acts according to the efficiency wage theory.
Explanation:
The efficiency wage theory states that if an employer increases the wage of his/her employees, they will be motivated and their productivity will increase. The increase in productivity should offset the increased labor costs. So the costs of higher wages should be recouped through increased productivity. Higher wages also reduce worker turnover, reducing hiring and training costs.
It pays higher-than-average salaries to its level III software engineers due to the specific benefits of working there, which could range from taking on challenging work, the company's reputation, or to compensate for the expectations of a high workload. The disparity arises as a part of strategic compensation strategy. Salary isn't solely determined by the 'market rate' but influenced by several factors including the value the employee adds to the business.
Explanation:The question pertains to the difference in salary given to level III software engineers between the average in the Silicon Valley area and specifically at . The disparity arises due to the specific conditions and benefits of working at , which warrant a higher salary level as part of their broader compensation strategy.
For example, may provide a higher salary to attract the best talent, or to compensate for their expectations of a high workload or a demanding role. Furthermore, reputation, prestige, and the satisfaction derived from working on challenging projects can also justify a higher salary. This is a common practice in wage differentiation, also seen in different professions like the wage disparities reported amid scientists in the U.S. and Canada.
In essence, the salary a company offers isn't defined solely by the regional 'market rate'. Several variables - including the firm's prestige, the complexity or demand associated with the role, company culture, and the projected value an employee adds to the business - can influence wage offers.
Learn more about Compensation Strategy here:https://brainly.com/question/32663061
#SPJ12
Bob is looking for work afterschool, but everywhere he fills out an application, the managers say they always have alot more application than open positions. Tom has a law degree. Several firms have made him an offer, but he thinks he might be able to find andirm where his talents could be put to better use?
A. Bob is structurally unemployed, and Tom is frictionally unemployed
B. Bob and Tom are both frictionally unemployed
C. Bob and Tom are both structurally unemployed
Answer:
The answer is letter A.
Explanation:
Bob is structurally unemployed, and Tom is frictionally unemployed
During periods of expansion, automatic stabilizers cause government expenditures to rise and taxes to fall.a) trueb) false
Answer:
The answer is false
Explanation:
Expansions in the business cycle cause automatic stabilizers in the form of taxes to rise, and those in the form of government expenditures to fall.
An example of an automatic stabilizer is a progressive income tax scheme that adjusts to economic activity: rates rise when incomes are higher and economic activity is expanding, and rates fall when incomes are lower and economic activity is contracting.
Another example of an automatic stabilizer is transfer payments that increase when incomes are low in times of economic contraction, and decrease when incomes are high in times of economic growth.
In conclusion, the correct answer would be exactly the opposite: during periods of economic expansion, automatic stabilizers cause government expenditures to fall, and taxes to rise. Hence, the answer for this question is false.
Which of the following statements is FALSE?
a) Correlation is the expected product of the deviations of two returns.
b) The covariance and correlation allow us to measure the co-movement of returns.
c) The amount of risk that is eliminated in a portfolio depends on the degree to which the stocks
d) face common risks and their prices move together.
e) Because the prices of the stocks do not move identically, some of the risk is averaged out in a portfolio.
Answer:
a) Correlation is the expected product of the deviations of two returns.
Explanation:
Correlation is represented using the symbol ρ
Well the term correlation is derived from co variance and standard deviation of two.
It is in the form of a divided by b
Where a = co variance of the returns.
And b = Product of the standard deviation of the two.
Thus, it is just not the product of deviations.
Therefore, the statement in question is false.
The false statement is that correlation is the expected product of the deviations of two returns. Correlation measures the degree of a linear relationship between two variables, not their expected product deviations.
Explanation:The false statement amongst the provided options is: a) Correlation is the expected product of the deviations of two returns. Correlation instead measures the degree of a linear relationship between two variables, not the expected product of their deviations. While it is true that covariance and correlation measure the co-movement of returns (b) and that some risk is averaged out in a portfolio due to non-identical stock price movements (e), correlation is not directly related to the expected product of two deviations.
The amount of risk eliminated in a portfolio does depend on the degree to which the stocks face common risks and their prices move together (c). Correlation, covariance, and portfolio risks are all fundamental concepts in finance and investment management.
Learn more about Correlation here:https://brainly.com/question/31588111
#SPJ12
The assessed value of Sidney's home is $350,000, but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have?
Answer:
Depending on the reason why Sidney requested the appraisal, she has two options:
If Sidney got the appraisal because she thought her property taxes were too high, she can file a complaint with her local board of assessment review (BAR) in order to get her taxes reduced. Or if Sidney wants to sell her house she could appeal the appraisal amount and request a reconsideration of value.Ewa is a current employee of Financial Accounting, Inc. Gomer, a former Financial employee who is currently unemployed, collects unemployment compensation. This is provided by a tax on:
a. Ewa and Gomer only.
b. Ewa, Financial, and Gomer.
c. Financial only.
d. none of these parties.
Answer:
The correct answer is C) Financial Accounting Inc. only
Explanation:
Unemployment compensation, or unemployment benefits, are funded by employers, in this case, Financial Accounting Inc.
Employers pay a specific type of payroll tax named Federal Unemployment Act Tax (FUTA). This tax is paid at a rate of 0.6% of an employee compensation (iin this case, Ewa). While Ewa might bear some economic cost from thsi tax, for example, in the form of lower ages, he his not formally paying any tax, therefore, all the cost of the unemployment compensation Gomer is receiving is being born by the company.
Unemployment compensation is funded by a tax on the employer, so the correct answer to the question is that the tax is paid by Financial only, not by Ewa (the current employee) or Gomer (the former employee).
Explanation:Unemployment compensation is provided through a taxation system that involves employers. The taxes are typically paid by the employer and not by the employees or the unemployed individuals. Therefore, in the scenario presented, the unemployment compensation that Gomer collects would be funded by a tax on Financial only, making option c the correct answer. Current employees like Ewa and former employees like Gomer do not directly pay this tax.
Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105 call contract at $2. The maximum loss you could suffer from your strategy is Select one:
a.$200.
b.$300.
c.zero.
d.$500.
Answer:
The correct answer is B that is $300
Explanation:
The amount of maximum loss which is suffered from the strategy is computed as:
Amount of maximum loss = (WFM May 100 call contract price + WFM May 105 call contract price) × 100
= (-$5 + $2) × 100
= -$3 × 100
= -$300
Note: Options contracts are for 100 shares of the stock, so the quoted premium is multiplied by 100.
The question relates to options trading, specifically a bull call spread strategy. The maximum loss from this strategy, given the investor bought a WFM May 100 call for $5 and wrote a WFM May 105 call for $2, would be the net outlay of $300.
Explanation:In the given scenario, you purchase one WFM May 100 call contract for $5, which costs you $500 (as one contract represents 100 shares). Simultaneously, you write one WFM May 105 call contract at $2, earning you $200. This strategy is known as a bull call spread, which is a type of options strategy employed when the investor believes that the price of the underlying assets will rise moderately.
Your net outlay (or the initial cost) of this spread is $300 ($500 - $200). This will be your maximum possible loss if WFM closes below $100 at May expiration, as both options will expire worthless. Thereby, the correct answer is b. $300.
Learn more about Options Trading here:https://brainly.com/question/34564196
#SPJ3
_____ enable decision makers in different locations to participate in a group decision-making process. a. Enterprise management systems b. Electronic meeting systems c. Geographic information systems d. Database management systems
Answer: Electronic Meeting Systems.
Explanation: Electronic Meeting system as the name implies is a form of done on the Web where the participant are in different locations but communicate among themselves using a common online platform.
Electronic meeting systems breaks the distance barrier thereby enabling people miles apart to rub minds and brainstorm on issues they share in common.
Henry runs moonlight café, a world renowned fast-food restaurant, in his locality. he started the restaurant after getting a license from moonlight café and by regularly paying it a fee for the right to use its brand name, products, and methods of operation. henry most likely operates a(n) _____.a. chain store.b. warehouse club.c. franchise.d. independent retail store
Answer:
letter c is correct. Franchise.
Explanation:
A franchise is a business strategy whose main objective is to provide a predetermined operating model by paying fees for the trademark license.
Large companies are examples of franchise, such as MC Donald's, which is a globally consolidated brand and sells franchisees the right to use the brand.
In addition to the right to use the brand, the franchisee also has access to:
infrastructure,know-how exclusive or semi-exclusive distribution of products or services, trainingThe biggest benefit realized when purchasing a franchise is to start a business that has already reached a level of marketing maturity and presents credibility and value to consumers.
Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for ________ in the global market.
a. direct selling
b. direct marketing
c. personal selling
d. direct response
e. marketing publicity
Answer: Option (B)
Explanation:
Here, from the given option we can state that direct marketing is the correct option. Direct marketing is referred to as the type of communicating a proposal, under which an organizations tends to communicate straight to the pre-selected consumer and thus further supply the method or technique for the direct answer.
Bradley, an employee at Symphony Inc., noticed his colleague, Adriana, stealing office supplies from the office. He placed an anonymous call to upper management to inform them about Adriana's unethical behavior. In this scenario, which of the following tools did Bradley use to overcome organizational silence?
Answer:
The Company Hotline
Explanation:
Company's Hotline policy shall be well communicated. This policy is basically prepared for managing the acts of company's unethical nature, which shall not be conducted, therefore, in order to regulate these kind of transactions the companies prepare this policy, in which employees are praised for reporting and noticing such transactions and acts.
In any manner if a fraud is detected and that the company is able to check on that because of some employee then the company shall provide the employee with some benefits whether monetary or non-monetary.
Even in the given case, the policy is Company's Hotline.
The Coffee Express company is located in a business district with few customers on the weekend. To attract customers on Saturday and Sundays, it reduces its prices on these two days. This is an example ofA. the target return effect.
B. the substitution effect.
C.dynamic pricing.
D. the income effect.
E. cross-price elasticity.
Answer:
C.dynamic pricing.
Explanation:
This is an example of dynamic pricing, also known as price discrimination. This involves charging different prices to different consumers, very common in aviation where people pay different prices for the same class of a flight. Dynamic pricing also works well in situations like the one described in this question. On weekdays, there is a high movement of customers, so the price can be high. On the weekend there is no commercial movement, so the coffee shop decreases the price to generate a stimulus for customers to leave their homes to go to the store to consume the product. Therefore, the price of coffee in this case is dynamic and varies according to available demand.
The proper quantity of safety stock is typically determined by:_________
a. setting the level of safety stock so that a given stockout risk is not exceeded.
b. using a single-period model.
c. multiplying the EOQ by the desired service level.
d. carrying sufficient safety stock so as to eliminate all stockouts.
e. minimizing total costs.
Answer: im stuck on the saame queston
Explanation:
The correct option is 'The proper quantity of safety stock is typically determined by' a. setting the level of safety stock so that a given stockout risk is not exceeded.
The proper quantity of safety stock is typically determined by setting the level of safety stock so that a given stockout risk is not exceeded. Safety stock is a buffer inventory held to protect against uncertainties in demand and lead time. It helps to ensure that there is sufficient inventory available to meet customer demand even during unexpected fluctuations or delays. The level of safety stock should be determined based on the desired service level, which is the probability of not experiencing stockouts. By analyzing historical demand data and lead time variability, companies can calculate the appropriate amount of safety stock that will provide a desired level of customer service while minimizing the risk of stockouts. This approach allows companies to balance the costs of carrying excess inventory with the costs of potential stock outs, ultimately optimizing their inventory management and overall costs.
To know more about safety stock here
https://brainly.com/question/33045744
#SPJ6
Paula owns a variety store in a tourist town. The store recently went online, and the response has been remarkable. The store’s current infrastructure is running close to capacity, so handling the influx of orders is taking much longer than it should.
Which of the following cloud computing services would make the most sense for the business?
a) Add another server to their infrastructure.
b) Use grid computing to process the orders across many servers.
c) Use cloud computing services.
d) Use the services of a utility computing provider.
e) Convert their existing servers to virtual services
Answer:
a) Add another server to their infrastructure.
Explanation:
Cloud computing service provides for access of various private or public clouds so that the storage of the information is sorted and there is no problem in storing such data and information.
Other than storage there are other services like, security and outside programming are also provided.
But in the given instance if the server is getting loaded with the data, and it can be solved by adding another server and that will maintain the privacy and security of data.
Thus, the best option will be to install another server.
At Lorenzo's workplace, the performance appraisal process includes measurements of organizational citizenship behaviors, such as volunteering for unpleasant tasks and helping new employees socialize into the work team. Lorenzo's employer is___________.
a. enforcing job requirements.
b. using inappropriate information.
c. committing a halo error.
d. relying on a ranking method.
e. rating contextual performance.
Lorenzo's employer is rating contextual performance by evaluating organizational citizenship behaviors, which are voluntary activities that contribute to the organization's social and psychological environment. The correct answer is e. rating contextual performance.
At Lorenzo's workplace, the performance appraisal process includes measurements of organizational citizenship behaviors (OCB), such as volunteering for unpleasant tasks and helping new employees socialize into the work team.
These behaviors, which go beyond the basic requirements of the job, are discretionary and benefit the organization by contributing to its smooth operation. Therefore, when Lorenzo's employer appraises these behaviors, they are rating contextual performance.
Contextual performance refers to tasks an employee does which helps to enhance the organizational environment but is not part of their formal job description.
This contrasts with task performance, which encompasses the technical aspects of a job. By including OCBs in the appraisal, Lorenzo's employer is aiming to foster a cooperative and supportive workplace culture.
A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n) ________ economy.
Answer: raw material exporting economy
Explanation: In simple words, these refers to the economies which have huge reserves for natural resources but are poor in the other ways. Chile and democratic republic of Congo are some of many examples of this kind of economy.
Usually these forms of economies earns majority of their revenue from exporting these resources to other countries ans they lack proper technology to use them properly. Also, difference between classes is huge in such economies.
Thus, from the above we can conclude that the country in the given case is raw material exporting economy.
Jason, Julian, and Rebecca are members of a longstanding and successful LLC. The three members want to dissolve their LLC and distribute their assets, but they know the LLC has debts as well. Once all the LLC's assets have been sold, the proceeds ______.
a. are distributed to pay off member capital contributions first and creditors next. Any remaining amounts are distributed to members in equal shares or according to the operating agreement.
b. are distributed to pay off creditors first and member capital contributions next. Any remaining amounts are then distributed to members in equal shares or according to the operating agreement.
c. are distributed equally to the members, and then creditors are paid with the remaining assets.
d. are equally shared among the members without regard to other liabilities.
Answer:
B. Are distributed to pay off creditors first and member capital contributions next. Any remaining amounts are then distributed to members in equal shares or according to the operating agreement.
Costs that do not differ between alternatives are ________.
A. considered irrelevant to the decision.
B. relevant to the decision.
C. considered opportunity costs.
D. important only if they represent a material dollar amount
Answer:
A. considered irrelevant to the decision.
Explanation:
The essence of decision making is to get best value considering the various elements of cost involved.
Cost that do not differ between alternatives are considered irrelevant to decision making as such cost (where necessary for project) will be incurred without a loss or gain in the amount spent. Opportunity cost refers to the cost of the alternative forgone but this question talks about cost that do not differ between alternatives hence option C is not right.
Cost are not only considered when they represent a material dollar amount rather they are considered on the basis of their importance to the project.
Therefore considering all the options, the right answer is A as Costs that do not differ between alternatives are considered irrelevant to the decision.
PLastics INc will pay an annual dividend of $1.85 Next year. THey just announced that future dividends will be increasing by 2.25% annually. How much are you willing to pay for one share of this stock if yoyu require a 16% return?a. 13.45b. 13.61c. 13.76d. 14.02e. 14.45
Answer:
In order to find the intrinsic value of a stock or how much we should pay for the stock we can use the dividend discount method. The formula is
D*(1+G)/(R-G).
D= Dividend = 1.85
G= Growth Rate= 2.25%
R= Required return= 16%
In order to find the price we will input these values in the formula
1.85*(1+0.0225)/(0.16-0.0225= 13.76
We will be willing to pay $13.76 for this stock.
Ans c. 13.76
Explanation:
The fixed cost of Brendon Willows, a baseball bat manufacturing company, is $500,000 per year. The cost of wood and labor to manufacture one bat is $5. If the customers pay $25 to buy one bat, how many bats does Brendon Willows need to sell to break even?A. 20,000B. 25,000C. 100,000D. 150,000
Answer:
option (B) 25,000
Explanation:
Data provided in the question:
Fixed cost = $500,000 per year
Cost of wood and labor to manufacture one bat = $5
Selling price of the bat = $25
Now,
At breakeven, total cost equals to the total revenue
let the breakeven quantity be 'x'
thus,
$500,000 + $5x = $25x
or
$25x - $5x = $500,000
or
$20x = $500,000
or
x = 25,000
Hence,
the correct answer is option (B) 25,000
Hi Ethan,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
Do you think some kind of reward would be appropriate to motivate Ethan? If so, what should it be?
1. A choice of work assignments
2. Two days off with pay
3. A $200 bonus
Answer:
Two days off with pay
Explanation:
As the company will relocate the junior department the employee can ake a few days off as there will be no place o perform the sales until the rlocatino is done. This will refresh their energy and view their job as important enought to make them work only when the contidition are optimal.
Which of the following statements is false?A. In a make-to-order environment, the forecasts tend to be for groups of products.B. If the lead time to buy raw materials is long, the forecasts go farther out into the future.C. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products.D. All of the above statements are true.
Answer:
D) All of the above statements are true.
Explanation:
A. In a make-to-order environment, the forecasts tend to be for groups of products.
Make to order products are manufactured following the client's specifications. This type of product are not made one at a time, but are made in batches, e.g. 10,000 units of a certain door model.
B. If the lead time to buy raw materials is long, the forecasts go farther out into the future.
If you know that it takes longer to purchase raw materials or any other type of material, you must forecast the amount of material you will need for longer periods of time.
C. In a make-to-stock environment, forecasts tend to be more detailed and can get down to specific individual products.
Make to stock purchases are done to match your expected sales volumes, so if you estimate your sales of product Y to be 200 units, then you will forecast the purchase of 200 units of that product.
Central Bank policy requires Northern Bank to hold 10% of its deposits as reserves. Northern Bank policy prevents it from holding excess reserves. If the central bank purchases $30 million in bonds from Northern Bank what will be the result?
A. Northern's loan assets increase by $30 million.
B. Northern's bond assets increase by S30 million.
C. Northern's net worth changes by $30 million.
D. the money supply in the economy decreases.
Answer:
A) Northern's loan assets increase by $30 million.
Explanation:
Northern Bank is required to hold 10% of its deposits as reserves but that requirement does not apply to money it receives by issuing bonds. The total amount of the money that Northern Bank got from issuing bonds can be used to give loans to their clients.
Generally deposits reserves are used to secure that the bank's customers will be able to get their money back whenever they want. Of course no one expects all the customers will want their money at the same time, that is why the reserve level is only 10%.
The stock of Blue Water Tours, Inc. is expected to return 14.00 percent in a boom economy, 9.00 percent in a normal economy, and lose 8.00 percent in a recessionary economy. What is the expected rate of return on this stock if there is a 10.00 percent chance the economy booms, and an 85.00 percent chance the economy will be normal?
Answer:
Economy type Expected return Weightage Weighted Average
Boom 14% 10% 0.14*0.10= 0.014
Normal 9% 85% 0.85*0.090=.0765
Recession -8% 5% -0.08*0.05=-0.004
Add all the weigtage averages (0.014+0.0765-0.004)= 0.0865= 8.65%
The expected rate of return of the stock is 8.65%
Explanation:
In this question we need to find the weighted average returns, we know the expected return during a boom, normal and recession and we need to use the probabilities of boom, normal and recession as the weights, so the event which is most likely to happen will have the most weightage, this way we can find the expected return of the stock. There is a 85% chance that there will be a normal economy so the expected return in a normal economy will have the highest weightage.
Active Appliances, an electrical appliance firm, forms a group to design a new software application. This group consists of a systems designer, a programmer, and a user representative. This is an example of a(n):______
Answer: cross functional team
Explanation: In simple words, cross functional team refers to a group of individuals having expertise in different fields such as marketing, finance and technology etc. working towards same goal.
These kinds of groups are usually made in corporations that are involved in high profile projects requiring heavy resources and heavy expertise in different aspects of the operations.
In the given case, active appliances needs to make a software application and has formed a team consisting designer, programmer etc. Hence we can conclude that the given case depicts cross functional team.
Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $61,000 and direct materials used cost $79,000. Determine the amount of overhead Lowden Company should record in the current period.
a) $49,375.
b) $38,125.
c) $79,000.
d) $126,400.
e) $61,000
Answer:
=$126,400.00
Explanation:
Overhead application rate: 160 per cent on direct material cost
Direct labor cost : $ 61,000
Direct materiel cost: $ 79,000
Overhead cost = 160 per cent of $ 79,000.00
= $79,000x1.6
=$126,400.00
When the price level in the united states falls relative to the price level of other countries, what does it signify for US?
Answer:
Deflation
Explanation:
Deflation is a fall in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. So when we say the price level in the united states falls relative to the price level of other countries, this signifies that the united state is moving toward or going through Deflation.
Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the Fourth National Bank to pay for it. When their first payment is due, however, they get a letter from Bank of North America stating that they bought the loan from Fourth National Bank. Which of the following is true?A. Fourth National Bank made a delegation.B. Bank of North America became an incidental third party beneficiary.C. Fourth National Bank made an assignment.D. Bank of North America became an intended third party beneficiary.
Answer:
C. Fourth National Bank made an assignment.
The correct answer is that Fourth National Bank made an assignment by selling the loan to the Bank of North America, transferring its right to receive loan payments to another entity.
When the Fourth National Bank sold the loan to the Bank of North America, what occurred was an assignment. This means that the Fourth National Bank transferred its rights to receive the loan payments to another party, the Bank of North America. In this scenario, the Bank of North America did not become an intended third party beneficiary, because its rights arose not from the contract itself but from a separate agreement with the Fourth National Bank to purchase the loan. An incidental beneficiary would not have rights in the contract; thus, the Bank of North America does not fit that category either. A delegation involves transferring duties, not rights, which is not the case here since the bank is not delegating its duty to make payments; it is transferring the asset, which is the right to receive payments.
Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____.
a. are negative; is growing
b. are increasing; is growing
c. are declining; is growing
d. have peaked; is declining
e. are declining; is declinin
Answer:
The correct answer is ( b)
Explanation:
The growth stage is the period during which the item in the long run and progressively gains acknowledgement among customers, the industry, and the more extensive overall population. During this stage, the item or the advancement gets acknowledged in the market, and accordingly deals and incomes begin to increment and so as the competition.