In 2005, Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices. Three years later, once the refining capacity was restored, these prices came back down. The restoration of refining capacity should:
A) shift the short-run aggregate supply curve to the left.
B) shift the short-run aggregate supply curve to the right.
C) move the economy up along a stationary short-run aggregate supply curve.
D) move the economy down along a stationary short-run aggregate supply curve.
Answers
Answer:
In this case,the correct answer would be option B) in the answer choices or shift the short-run aggregate supply curve to the right.Explanation:
The destruction of the oil and natural gas refinery capacity Gulf of Mexico during Hurricane Katrina would reduce the overall supply of oil which would decrease the short run aggregate supply in the economy.This phenomenon can be illustrated by an initial shift of the aggregate supply curve to the left in the goods market in economy. Now, due to reduction in overall oil supply due to destruction of the refineries, the oil prices in the market would increase,everything else held constant.As after three years,the oil refineries are restored properly, the overall oil supply would again increase in the market from its initial position following the refinery destruction after the hurricane,which would consequently lead to a rightward shift of the aggregate supply curve in short run in the goods market.The restoration of refining capacity should shift the short-run aggregate supply curve to the right.
As a result of Hurricane Katrina, there would be a decline in the supply of oil, this would lead to an inward shift of the supply curve. Years later, after the restoration, there would be an increase in the supply of oil. This would lead to an outward shift or rightward shift of the short-run aggregate supply curve.
Only a change in the price of oil would lead to a movement along the short-run aggregate supply curve. Other factors would lead to a shift of the supply curve.
Please find attached a graph showing the rightward shift of the supply curve. A similar question was answered here: https://brainly.com/question/15217886
Related Questions
Riley says that the present value of $700 one year from today if the interest rate is 6 percent isless than the present value of $700 two years from today if the interest rate is 3 percent. Anh saysthat $700 saved for one year at 6 percent interest has a smaller future value than $700 saved fortwo years at 3 percent interest.a. Both Riley and Anh are correct.b. Both Riley and Anh are incorrect.c. Only Riley is correct.d. Only Anh is correct.
Answers
Answer:
A) Both Riley and Anh are correct.
Explanation:
to see who is right we can calculate:
PV = FV / (1 + r)ⁿ
FV = PV x (1 + r)ⁿ
Riley's statement:
PV = $700 / (1 + 6%) = $660.38
PV = $700 / (1 + 3%)² = $659.82
Riley is right
Anh's statement:
FV = $700 x (1 + 6%) = $742
FV = $700 x (1 + 3%)² = $742.63
Anh is right
They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.
Dunn Corporation owns 100 percent of Grey Corporation’s common stock. On January 2, 2017, Dunn sold to Grey $40,000 of machinery with a carrying amount of $30,000. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated net income would be an increase (decrease) of
Note:
A table for 2017 and 2018 income is hereby shown
Answers
Answer and Explanation:
Given:
Cost of machine = $40,000
Carrying amount = $30,000
Expected life = 5 year
Computation of Depreciation per year:
Depreciation per year = Cost of machine / Expected life
Depreciation per year = $40,000 / 5
Depreciation per year = $8,000
Computation of Income from sale:
Income from sale = Cost of machine - Carrying amount - Depreciation
Income from sale = $40,000 - $30,000 - $8,000
Income from sale = $2,000
Computation of historical Depreciation:
Historical Depreciation = Carrying amount / Expected life
Historical Depreciation = $30,000 / 5
Historical Depreciation = $6,000
Computation of Consolidated Net Income:
Consolidated Net Income = $8,000 - $6,000
Consolidated Net Income = 2,000
2017 Net income reduce by $8,000
2018 Net income increased by $2,000
Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. Your client wants to know what will happen to gasoline demand if it increases gasoline prices by one cent higher than its nearest competitors. One of the members of your consulting team, Debbie, shares that one time in college she stopped buying gasoline from a service station that was one cent more expensive.
Based on this story, should you conclude that demand will fall to zero if the client raises gas prices by one cent?
Answers
Answer:
No, Debbie's story is an argument by anecdote, and it can lead to
wrong conclusions.
Explanation:
An argument by anecdote is when a point is proven with a story. It can be a very compelling argument, and this is because people usually like the stories about other people more than they like facts.
In general, the anecdotal argument will relate to the subject matter that is being discussed. However, anecdotal evidence is unreliable because it can be unscientific or pseudoscientific due to the fact that various forms of cognitive bias may affect the collection or presentation of evidence.
As we can see in the scenario given above, Debbie's argument is unreliable because it is her personal experience and not the collective experience of all the consumers when the price increased by one cent. Also, no form of survey or research was carried out, therefore Debbie's argument is not scientific.
Luciana is the first to offer a new product to customers in the local market and expects no competitors to emerge for at least the first year. Her market research has helped her identify a group of upscale customers who are eager to purchase this new product, so she decides to set a high price for it. Which pricing strategy is Luciana using?
Answers
Answer:
skimming.
Explanation:
In this context, it can be said that Luciana will use the skimming pricing strategy.
This strategy consists of setting a relatively high price for the new product or service that will be offered in the market and then gradually lowering its price.
This strategy works by charging a high initial price that will be accepted by the first customers and after the first demand is satisfied, the price will be reduced to attract the most price sensitive customers.
Leslie Bradley is an entrepreneur with a small business in Little Rock, Arkansas. Working with a local engineer/inventor, Leslie has developed a new cooking device that she thinks will revolutionize cooking. The device is a small oven that is portable and uses a gas injection system to cook meals in a fraction of the time taken in a normal oven. The new system creates a very high temperature and the gas jets are located 360 degrees around the food to be cooked, thus ensuring that the food is cooked equally on all sides. Leslie and the engineer applied for a patent and then immediately sought a relationship with a large manufacturer to produce and distribute the new oven. To her surprise, when she demonstrated it to the top three manufacturers, they all had the same reaction: "We are very interested in this new invention but we would like to see some consumer research that tells us what consumers think about the device." "Will they think the temperature is too high and represents a safety issue?" "Do they really think that a roast cooked in 6 minutes will taste the same as one roasted for 2 hours?" "How much, if any, will they be willing to pay for the added convenience of time savings?" Leslie sought the services of Weber Research, Inc. WRI was an established research firm in the city and they recommended that they use their mall facility in order to conduct some research that allowed consumers to use the device and taste the food cooked in the device. Leslie agreed but was concerned about the types of persons in the shopping mall. "They really won't represent our area since they will likely be mostly female and they will have higher incomes than the general population."
WRI assured Leslie that this could be overcome by using which of the following sampling methods?
A) quota sample
B) purposive sample
C) stratified sample
D) representative sample
E) systematic sample
Answers
Answer:
B) quota sample
Explanation:
Remember, Leslie was initially concerned about the types of persons in the shopping mall, who she believed would not represent the research area since they may likely be mostly female and they will have higher incomes than the general population.
However, using Quota sampling method, Weber Research, Inc. could look for consumer that are more likely to use the device and taste the food cooked in the device, this consumers would be divided into quotas or groups having similar characteristics and then a sample would of the population will be researched on.
67 people of 350 surveyed gave your company five stars. Of men, 40 out of 175 gave your company five stars. Was your company rated 5 stars more commonly among the general population or among men?
Answers
Answer:
The company was rated 5 stars more by Men
Explanation:
Given that
General population = 67/350
Men = 40/175
In checking the percentage ratio, we have
a. General population
= (67/350) × 100
= 19.14%
b. Men population
= (40/175) × 100
= 22.85%
Thus, seeing that 22.85% > 19.14%, therefore, company was rated 5 stars more among the men population.
Firms continue to produce (illegally) counterfeit computer software and documentation. Some of the illegal copies are Microsoft products, though Microsoft still has a large share of the market for its products. The presence of enforced copyright protection laws indicates that the market for Microsoft software cannot be considered a competitive market because:
Answers
Answer:
There are significant barriers to entry
Explanation:
Base on the scenario been described in the question, other firms that were producing counterfeit software are not going to make the market of Microsoft competitive because, the products are illegally produced and Microsoft has enforced the presence copyright protection laws serves a barrier to firms producing counterfeit software.
The VP of Manufacturing at Roshanak Incorporated wants to buy a new die-cast machine for production. The die-cast machine is expected to cost around $1,000,000. Which document will most likely be used to solicit bids from suppliers?A) RFPB) eVoiceC) RFJD) RFB
Answers
Answer: (A) RFP
Explanation:
The RFP is stand for the Request for proposal and it is one of the type of business related document that is used by various types of organizations and the companies for the purpose of outlining the actual needs for the given project.
According to the given question, the RFP is the document that is used to solicit bids from the supplier as it it sent to the prospective suppliers for the specific competitive bids and the best bid is basically selected by the committee of capital investors.
After the selection process, the best supplier gives all the asset and the regular expenditure process of the specific organization. Therefore, Option (A) is correct answer.
Sales in North Corporation increased from $80,000 per year to $84,000 per year while net operating income increased from $30,000 to $36,000. Given this data, the company's degree of operating leverage must have been:
Answers
Answer:
4 times
Explanation:
Given that,
Initial sales = $80,000
New sales = $84,000
Initial net operating income = $30,000
New net operating income = $36,000
The degree of operating leverage is determined by dividing the percentage change in net operating income by the percentage change in the sales.
Percentage change in net operating income:
= [(New net operating income - Initial net operating income) ÷ Initial net operating income] × 100
= [($36,000 - $30,000) ÷ $30,000] × 100
= ($6,000 ÷ $30,000) × 100
= 0.2 × 100
= 20%
Percentage change in sales:
= [(New sales - Initial sales) ÷ Initial sales] × 100
= [($84,000 - $80,000) ÷ $80,000] × 100
= ($4,000 ÷ $80,000) × 100
= 0.05 × 100
= 5%
Degree of operating leverage:
= Percentage change in net operating income ÷ Percentage change in sales
= 20 ÷ 5
= 4 times
ZumbaUp, a leading jeans brand, realized that a user named PoisonX had breached its security codes and gained unwarranted access to the company's highly classified information. The company was shocked to see all of its business tactics and prospective deals put up online, exposed to everyone. In this scenario, ZumbaUp is a victim of
Answers
Answer:
Hacking
Explanation:
Hacking can be defined as the breaching or the securities or taking advantage of the weaknesses of a computer system or network.
hacking is carried out by a hacker and there are different types or grades of hackers depending on how good they are, their reason for being an hacker, among other things.
In the case of ZumbaUp, the securities of the companies databases was breached and published for all to see by PoisonX.
Cheers.
Kojo, a LifeCare Medical Supplies salesperson, follows Malin, a salesperson for National Medco Products, a LifeCare competitor, as Malin visits medical clinics, doctors’ offices, hospitals, and other locations to make sales. Kojo solicits each of Malin’s customers. Kojo is most likely liable for a.conversion. b.no tort. c.wrongful interference with a business relationship. d.trade libel.
Answers
Answer:
C
Explanation:
Wrongful interference with a business relationship.
Kojo is liable for wrongful interference with a business relationship and Based on common law tort and contract principles, the courts can order that damages be paid to compensate national medco products for economic harm caused by Kojo who interfered with their business relationships due to the fact that Kojo is trying to solicit Malin's customers to breach contract with Malin.
Q 7.25: The corporate officers at KLM Distributors require the head of the information services department to attend monthly conferences related to emerging technology and potential for fraud. Which aspect of internal control is KLM addressing?
Answers
Answer:
The correct answer is: risk assessment.
Explanation:
Risk assessment is tool companies use at the moment of gathering information about potential risks that can impact the company's operations and how to mitigate them in case they appear. It is a continuous process a firm develops along with risk management which is in charge of creating the strategies that would be implemented at the moment of dealing with risks.
Stacy, who is married and sole shareholder of ABC Corporation, sold all of her stock in the corporation for $100,000. Stacy had organized the corporation in 2009 by contributing $225,000 and receiving all of the capital stock of the corporation. ABC Corporation is a domestic corporation engaged in the manufacturing of ski boots. The stock in ABC Corporation qualified as Sec. 1244 stock. The sale results in a(n):
Answers
Answer:
The sale results in an ordinary loss of $100,000 and long-term capital loss of $25,000.
Explanation:
Stacy, who is married and sole shareholder of ABC Corporation, sold all of her stock in the corporation for $100,000. Stacy had organized the corporation in 2009 by contributing $225,000 and receiving all of the capital stock of the corporation. ABC Corporation is a domestic corporation engaged in the manufacturing of ski boots. The stock in ABC Corporation qualified as Sec. 1244 stock. The sale results in AN ORDINARY LOSS OF $100,000 AND LONG-TERM CAPITAL LOSS OF $25,000.
Answer:
ordinary loss of $100,000 and long-term capital loss of $25,000
Explanation:
Up to $100,000 on a joint return of loss realized on disposition of Section 1244 stock is treated as an ordinary loss. So the first $100,000 would be ordinary and the remaining $25,000 would be a LTCL.
And investment property produces 175,150 annual gross income if the annual expenses are 24,600 and the appraiser estimates the value of the building using 5.25% rate of return what is the estimated value
Answers
Answer:
$962,857
Explanation:
The Dividend Valuation Model with no growth increment can be used here to calculate the value of the building and is given as under:
Po = D / r
Here
Po is value of building
D is Net Annual Cash flow
r is the rate of return
By putting the values we have:
Po = (75,150 - 24600) / 5.25% = $962,857
How can expansionary expenditure-based fiscal policy lead to crowding out in the economy? A. Expenditure-based fiscal policy increases the national debt, inducing forward-looking households and firms to reduce expenditures in anticipation of having to pay higher future taxes. B. Expenditure-based fiscal policy requires the collection of additional taxes, which reduce household incomes and expenditures. C. Expenditure-based fiscal policy leads to more government borrowing, absorbing funds that would have otherwise been borrowed and expended by the private sector. D. Expenditure-based fiscal policy raises inflation expectations and interest rates, causing private sector expenditures to fall.
Answers
Answer:
The answer in this case, would be option C. or Expenditure-based fiscal policy leads to more government borrowing, absorbing funds that would have otherwise been borrowed and expended by the private sector.Explanation:
In Macroeconomics, expansionary is a phenomenon which refers to increased government or public spending or expenditure in the economy.Now,crowding out effect can occur in the economy when the government attempts to liquidate or finace the increased expenditure through financial borrowing to such an extent that it leads to crowding out or shortage of most of funds to be expended by the private sector in the economy.This can essentially lead to shortage of funds which could have been borrowed by private businesses, companies and investors to raise private business and capital expenditure.Susan is a partner of Andrusian Consulting, a consulting partnership. Susan agrees with Mimms Company that Andrusian will provide management consulting services for $75,000 to Mimms, if Mimms agrees to pay Susan $5,000 personally. What fiduciary duty will Susan breach, if Mimms pays her $5,000?
Answers
If Mimms pays Susan $5,000 personally, Susan would breach her fiduciary duty of loyalty to Andrusian Consulting.
Explanation:If Mimms pays Susan $5,000 personally, Susan would breach her fiduciary duty of loyalty to Andrusian Consulting. As a partner of Andrusian, Susan has a legal duty to act in the best interest of the partnership and prioritize the partnership's interests over her personal interests.
By accepting payment from Mimms personally, Susan is putting her personal financial gain ahead of the partnership's financial interests. This behavior violates her duty of loyalty, which requires partners to act in good faith and avoid conflicts of interest.
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Darg's team just had a research breakthrough. They'll need several thousands of dollars to complete the project. Darg has called a series of meetings in which he's promoting the significance of the new discovery, explaining the economic benefits that will result from the final project, and answering questions. Darg is a(n) ________ within his company.
Answers
Answer:
Idea champion
Explanation:
The reason is that the idea champion is the person who promotes creativity and change in the organization because he thinks that transformation is the root cause of success in the business environment. The idea champion is of the opinion that the companies that are reluctant to transform their operations, products, etc are more headed towards the risk of loss of reputation and brand recognition as it is today. So Idea champion promotes critical and creative thinking in the business environment which we can see in the given scenario that Drag is promoting transformational, critical analysis of the discovery and creative thinking of opting this change through raising questions and trying to answering the questions.
You are considering purchasing a new truck that will cost you $34,000. The dealer offers you 1.9% APR within monthly compounding for 48 months (with payments made at the end of the month). Assuming you finance the entire $34,000 and finance through the dealer, your monthly payments will be closest to:
Answers
This is a financial mathematics question about calculating monthly payments for a car loan. With an interest rate of 1.9%, a loan amount of $34,000, and a term of 48 months, the monthly payments would be approximately $733.76.
Explanation:The subject of this question relates to financial mathematics, specifically, calculating the monthly payments for a loan. To calculate the monthly payment on a loan, one might use the loan payment formula:
P = [r*PV] / [1 - (1 + r)^-n]
Where P is the monthly payment, r is the monthly interest rate (annual rate divided by 12), PV is the present value of the loan (or loan amount), and n is the number of payments. Monthly interest rate, in this case, is 1.9%/12 = 0.00158333, and the number of payments is equal to 48. Therefore, the monthly payment on a $34,000 loan is:
P = [0.00158333 * 34000] / [1 - (1 + 0.00158333)^-48] = $733.76 approx.
So, the monthly payments for the $34,000 truck with a rate of 1.9% monthly compounded over 48 months would be approximately $733.76.
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Sedona has quite a number of potentially conflicting community groups. explain three ways that the chamber of commerce can use social media to help manage conflict so as to maintain a healthy business environment.
Answers
Answer:
Explanation:
The three ways the chamber of commerce can use social media to manage conflict so as to maintain a healthy business is as follows;
Chamber of Commerce can use social media to help in new businesses (and the current ones) to get their name shown to the society by using the (B2B) business to business. They can be able to pass information, videos and photos of the businesses through social media.
Chamber of Commerce can put the “Guidelines to social media presence” to assist this businesses to be able to deal with negativity and prevent or stop future conflict.
Another way chamber of Commerce use social media is by building relationship through the means interacting with each local business who decides to have a social media page or group. They will be able to assist by commenting, sharing and reviewing the businesses. This can assist those pages have more followers and views.
A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be:a.budgeted sales revenue b.total budgeted cash disbursements for selling and administrative expenses c.total budgeted fixed selling and administrative expenses d.total budgeted variable selling and administrative expense
Answers
Answer:
d.total budgeted variable selling and administrative expense
Explanation:
Since in the question it said that the cost driver is number of units sold for the variable selling and administrative expense budget
So by multiplying the variable selling and administrative rate with the budgeted unit sales we can get the total budgeted variable selling and administrative expense
In mathematically,
= Variable selling and administrative rate × budgeted sales units
The three dimensions of customer service are: a. diligence, communication, and customer experience. b. product quality, customer experience, and communication. c. product quality, feedback, and service motivation. d. communication, product quality, and diligence. e. communication, resilience, and service motivation.
Answers
Answer:
A) Diligence, communication, and customer experience.
Explanation:
A customer service is a direct face-to-face dialogue between a customer to a brand and the brand's representative responsible for its sale. Every customer wishes or looks forward to a service filled with diligence and effectiveness on the side of the sales representative. For a firm ror manufacturing company to attract customers is one thing but to keep them is another theory on its own. A good customer service can be a good determinant to this. Hence, the three dimensions listed above.
In estimating the total value of supplies on repair trucks, Baker Company draws random samples from two equal-sized strata of trucks. The mean value of the inventory stored on the larger trucks (stratum 1) was computed at $1,500, with a standard deviation of $250. On the smaller trucks (stratum 2), the mean value of inventory was computed as $500, with a standard deviation of $45. If Baker had drawn an unstratified sample from the entire population of trucks, the expected mean value of inventory per truck would be $1,000, and the expected standard deviation would be _________.
Answers
Answer:
Greater than 250
Explanation:
Given that standard deviation is a statistical tool used to express or measure the amount of variation that exist in a set of values or within a given population, the combination of two diverse population as it was done in this scenario will lead to or rather likely result in a standard deviation number that is larger than either of the separate strata. Thus, given that the standard deviation of the two state were 250 and 45, the expected standard deviation would be greater than the highest which is 250.
"In a distributed system, there is a high level of cooperation and sharing of actions and data maintained by the sites when determining which process should be loaded and where it should be run; this is accomplished by ____."
Answers
Answer: Exchanging the messages between site operating systems
Explanation:
The distributed system is one of the type of computing system in which the various types of multiple elements are basically located on the machines that are specifically used for the communication purpose and this distributed system is basically appear to the user in the form of single system.
According to the given question, the given process is basically accomplished by exchanging the different types of messages between the site OS (Operating system).
In the given distributed system, the data and the cooperation action is highly maintain by the sites while determining the loaded process. Therefore, The given answer is correct.
Waterway Industries is planning to sell 500 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 4100 pounds of clay mix in beginning inventory and wants to have 4900 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?
Answers
Answer:
$4785
Explanation:
Estimated Production budget - 870 boxes
Hour /unit = 0.5
Total time required = (870*0.5)435 hr
Labor rate =$10/hr
Budgeted manufacturing overhead = 435 *10 *110%
=$4785
In a tax-free business combination,
A. the income tax basis for acquired assets and liabilities is adjusted to current fair value.
B. any goodwill created by the combination may be amortized in calculating taxable income.
C. the subsidiary's assets and liabilities are assigned an income tax basis of zero dollars, so that they will have no future income tax consequences.
D. any goodwill created by the combination must be deducted in total in calculating taxable income.
E. the subsidiary's cost basis for assets are retained for income tax calculations.
Answers
Answer:
The answer here would be option E. given in the answer choices or the subsidiary's cost basis for assets are retained for income tax calculations.Explanation:
A subsidiary can be identified as an autonomous and independent business organization which operates under the parent or the original company.The parent company or the original organization typically owns 50% or more stock or share in business and if it has absolute or full control over the subsidiary company, then it is commonly known as Wholly Owned Subsidiary.To obtain the benefits of the tax-free business combination under a subsidiary based business structure or planning, the estimation of the costs and expenses of the business assets officially listed by the subsidiary in its respective accounting books have to be legitimately reported or filed under income tax calculations.Framex Inc. has separate computer-accessible storage media for all of its departments. These storage media store files of related data organized according to a logical system. In this scenario, Framex has many different _____ for its various departments.
A. decision support systemsB. databasesC. cybermediariesD. business intelligence systems
Answers
Answer:
B. databases
Explanation:
Since, Framex Inc. has separate computer-accessible storage media for all of its departments that store files of related data organized according to a logical system.
In this scenario, Framex has many different databases for its various departments.
Database is a structured set of information or data usually stored in a computer, especially for rapid access, search and retrieval.
When radio is used as an advertising medium, which of the following statements is usually true. a.Local customers embrace radio advertising. b.Radio advertising is usually very expensive. c.Segmentation strategies cannot be applied. d.The target audience is attentive to radio advertising. e.A low audience selectivity is provided by radio advertising.
Answers
Answer:
a. Local customers embrace radio advertising.
Explanation:
Advertising is any paid form of non personal presentation and promotion of goods and services which is aimed at promoting immediate sales.
There are several forms of advertisements which are radio, television, news papers and magazines, direct mails, fairs and exhibition, window display, outdoor advertising etc.
Radio advertising is one of the important forms of advertising because it covers wider range and all listeners. Local customers also embrace radio advertisement because they might not have immediate access to other forms like newspaper and magazines.
However, one of the disadvantages of radio advertising is high advertising cost. The messages are also very short and one could barely hear those messages atimes.
Periodically reviewing controls to verify that they still function as intended, upgrading controls when new requirements are discovered, ensuring that changes to systems do not adversely affect the controls, and ensuring new threats or vulnerabilities have not become known are all ________ tasks.
Answers
Answer:
B. maintenance
Explanation:
Based on the scenario being described within the question it can be said that these are all known as maintenance tasks. These are different types of tasks that all focus on making sure that everything is in good condition and is working as intended. This is done through a series of functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, and/or building infrastructure if needed.
Christina is planning on getting married in the next year. She is a very successful business owner and is planning on buying some vacation property on the coast. She asks her agent, Martina, for advice on how she should take title to this new property. Should she hold the title alone, or jointly with her fiance? How should Martina advise?
a.Martina should advise Christina to protect her future assets and hold title separately due to California’s community property laws.
b.Martina should simply tell Christina to consult her attorney on this matter.
c.Martina could discuss with Christina what she knows in reference to California community property laws. She should not offer any advice on this subject except to consult an attorney to obtain legal counsel.
d.None of the Above.
Answers
Answer:
Martina should discuss with Christina what she knows in reference to how title can be vested but give no advice except to consult an attorney for advice.
Explanation:
Christina is planning to buy a property and wants to know if it will be better for her to hold the title or do so jointly with her fiance.
The best thing Martina should do is to find out if Christina has knowledge of vesting of property title, and refer her to an attorney for advise.
Martina is not a legal expert so her advice may be one that will result in wrong outcome.
Final answer:
Martina should inform Christina about the basics of California community property laws but advise her to consult an attorney for personalized legal counsel regarding property title before her marriage.
Explanation:
When Christina is deciding how to take title to vacation property, considering her status as a successful business owner and her upcoming marriage, Martina's best course of action would be option (c). Martina could outline what she knows about California community property laws, which could impact how property acquired during marriage is handled in the event of a divorce or death. However, as real estate and matrimonial laws can be complex and have significant legal and financial implications, Martina should advise Christina to seek the counsel of a qualified attorney to obtain advice tailored to her specific situation.
When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?a. first-mover disadvantages
b. last-mover disadvantages
c. last-in first-out disadvantages
d. comparative disadvantages
e. absolute disadvantages
Answers
Answer:
b. last-mover disadvantages
Explanation:
Last-mover or late-mover disadvantages describes the situation faced by Galaxy Ventures, a real estate company, that entered the low cost housing business when the market was already saturated with other players.
Thus, forcing Galaxy Ventures to exit the market due to lack of customer loyalty and substantial dividends.