Answer:
The answer is Debit to Retained Earnings of $10,000.
Explanation:
Retained earnings simply put, is an accumulation of net income or loss over years minus dividend payouts (cash or stock).
The value of the stock in the company prior to the stock dividend payment was $1 x 10,000 units = $10,000
Meanwhile the market value increased to $5/share, the value now becomes $5 x 10,000 units = $50,000
20% stock dividend translates to 0.2 x $50,000 = $10,000
So, appropriate entries would be:
Debit Retained earnings $10,000
Credit Common stock $10,000
(To record stock dividend payment)
Question 1 (1 point)
If you have $350 income as your "take-home pay", you have fixed and variable expenses of $275, and you pay $25 into your
savings account, how much will you have as discretionary income?
Answer: $75
Explanation:
After deduction all expenses and taxes, the balance left either at hand or in bank is the discretionary income.
Final answer:
To determine discretionary income, subtract total expenses and savings from your take-home pay, leaving you with $50 for personal use.
Explanation:
To calculate your discretionary income, you need to subtract your total expenses and savings from your take-home pay. Here is the step-by-step process:Start with your take-home pay: $350.Subtract your fixed and variable expenses: $350 - $275 = $75.Subtract the amount you pay into savings: $75 - $25 = $50.The result, $50, is your discretionary income. This is the money you have left for personal spending after accounting for all your obligations and all your savings.
There are hundreds of colleges and universities that serve millions of college students each year. the colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.
Answer:
For Number of firms, the answer is C. Many.
For type of product, the answer is D. Differential.
For Market model, the answer is C. Monopolistic Competition.
Explanation:
From the questions above, we can conclude that the number of firms is Many because it is stated that there are hundreds of colleges and universities that serve millions of college students each year.
For the type of product, in this case service, that each college and university offers, there is service differentiation. This is because each school will offer unique and distinct ways of meeting the students' needs.
There exists monopolistic competition in markets which have several competitors selling similar products and services. The similar products and services are not ideal substitutes for each other in monopolistic competition. Here, the barriers to entry and exit in the industry are low, and the decisions that are taken by one company do not affect the competitors. Therefore, in the scenario given above, because there are several colleges and universities serving millions of students in similar ways but with differentiated methodologies and programs, they form a monopolistic competitive market.
The aggregate production function is the relationship that tells us ______, when all other influences on production remain the same. A. how real GDP changes as the quantity of leisure changes B. how real GDP changes as the quantity of labor changes C. how potential GDP changes as the labor market moves from surplus or shortage to equilibrium D. how the real wage rate changes as the quantity of labor changes
Answer:
B. how real GDP changes as the quantity of labor changes.
Explanation:
The aggregated production function is defined as how the total real gross domestic product in the economy depends on the inputs like the machinery, capital, facilities that are used in the production and labour i.e the number of hour that is work done in the entire economy. The production function show the values of the outputs given and relations between the factor of productionKevin owns a fruit stand alongside a busy road. For several years, he has kept track of the number of apples that people purchase at different prices. He decides to graph the number of apples sold and the various prices at which he sold them. The graph shows his record of the number of apples sold at different prices.
Fill in the table with the number of apples Kevin sold at each price. Use the graph to estimate approximate quantities of apples.
What is the relationship between the price of apples and the demand for apples among Kevin’s customers?
Based on your answer to part B, should Kevin increase or decrease his prices toward the end of the season to avoid having unsold produce?
Answer:
Price per Pound (dollars) Quantity Sold (pounds)
1.00 5,700
2.00 4,100
3.00 2,300
Explanation:
plato
Price per Pound (dollars) Quantity Sold (pounds)
1.00 ⇔ 5,700
2.00 ⇔ 4,100
3.00 ⇔ 2,300
What is Problem-solving?Problem-solving is the act of defining a problem; determining the reason for the trouble; figuring out, prioritizing, and choosing alternatives for an answer; and implementing a solution. The Problem-solving method. Problem-solving sources.
What are Problem-solving examples?Problem-solving starts offevolved with figuring out the difficulty. for instance, an instructor may want to determine a way to improve student performance on a writing talent takes a look at. To do that, the instructor will evaluate the writing checks searching out regions of development.
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Employees may be required to sign, as a condition of employment, an agreement that they will not leave the company and go to work for themselves or a competitior firm in a position that could inflict competitive injury on the employer. This is called:
A. noncompete agreement
B. anti-raiding covenant
C. exculpatory agreement
D. whistle-blower agreement
E. none of the other choices
Answer:
Option "A" is the correct answer to the following question.
Explanation:
A non compete agreement is a type of deal under which an employee signs a document that states that the employee will neither leave the company nor join any of the companies or businesses Which can harm its employer in the competitive market. Such an agreement is made a non-compete agreement.
Such legal arrangements prohibit workers from joining industries or occupations which are considered directly competitive with the employer.
Eric Brown is a human resource manager in a company selling and manufacturing personal computers. Who among the following is Eric most likely to hire as a salesperson if his objective is to minimize training costs post recruitment?A. Samantha, a fresh college graduateB. Nancy, an experienced engineer with no prior experience in personal sellingC. Henry, a young salesperson with a few months' experience in a large MNCD. Melissa, a proven salesperson from a competing firmE. Richard, a product developer from a competing firm
Answer: Melissa, a proven salesperson from a competing firm
Explanation:
The best candidate for the role of a sales person is Melisa who is a salesperson from a competing firm. Since the objective of Eric Brown who is the human resource manager is to minimize training costs post recruitment, Melisa is the right candidate.
Melisa already has lots of experience as a salesperson in a previous company so,she is experienced and hence won't need to undergo any training unlike a product developer or engineer who need to undergo some trainings.
The unemployment rate of: a. teenagers is much higher than that of adults. b. women greatly exceeds that of men. c. whites is roughly equal to that of African-Americans. d. managerial and professional workers exceeds that of construction and extraction workers.
Answer:
A
Explanation:
Teenagers are more vulnerable than adults. Compared to adults they have less job experience, an employer is likely to always go for the employee with work experiences. The teenager who just entered the labor market is at a disadvantage and will have a more difficult time searching for a job than an adult with a history of work experience. In situations of economic downturns, a teenager is likely to be laid off than the adult because of the cost of investing in them for training purposes.
Automated transactions for B2B e-commerce where the suppliers are able to automatically send data about shipments to purchasing firm and the purchasing firm able to provide production and inventory requirements and payment data to suppliers represent the companies using
Answer:
EDI
Explanation:
The companies use the Electronic Data Interchange in order to automatically send the data without the need for the form to do any type of shipment for the purchasing firm.Thus be able to provide the production and inventory needs with the payment data thud saving the time and the cost involved in the processing. Hence the B2B transaction can be easily done through this method of the E-commerce and is a simple and effective method of providing valuable data to any organization.: a) depreciation for equipment purchased on January 1, 20X2 - 120,000 b) rent expense - 200,000 c) bad debt expense - 80,000 Below are the exchange rates at various dates: Date USD equivalent of 1 Local Currency Unit January 1, 20X2 0.50 December 31 ,20X5 0.40 Average, 20X5 0.44 What is the total dollar amount that should be included in Crush's income statement for the above expense accounts if the local currency is the functional currency?
Answer:
Depreciation - $60 000 Rent Expense - $80000 Bad Debts - $32000
Explanation:
For Depreciation we use the original depreciation cost of 120000 x 0,50 ( original cost ) = 60 000.
Rent expense we use the average for the current year since the rent expense applies to the entire year. The same applies to the bad debts. The average for 20x5 is 0.40
Rent Expense - 200000 x 0.40 = 80000
Bad Debts - 80000 x 0.40 = 32000
Applepom, a multi-national restaurant chain, follows different pricing policies and serves different types of cuisine depending on the region it operates in. The company has separate departments for the Middle East, other Asian countries, Russia, other European countries, North America, Latin America, Oceania, and Africa. In this scenario, which of the following organizational structures does Applepom most likely follow?
A) Geographic departmentalization.
B) Functional departmentalization.
C) Customer departmentalization.
D) Product departmentalization.
Answer:
A. Geographic departmentalization
Explanation:
Geographic departmentalization has to do with the categorization of activities along geographical lines or territory. It involves grouping activities in an organization so as to meet cultural, social and political need of the region or territory it finds itself in. In this case, applepom uses geographic departmentalization for their various restaurants in order to serve the local cuisines at the local prices thereby meeting the cultural and social need of each location.
Answer:
A) Geographic departmentalization.
Explanation:
Departmentalization is the process of grouping various activities into departments.
Geographic departmentalization is the process in which activities are grouped based on where they are located. This is done grouping a company activities based where it is located in. This type of departmentalization is usually practice by multinational companies allowing them to hire employees at the different geographical locations for different customers.
Without middlemen like Travelocity, Orbitz, and other travel Web sites, a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price. The introduction of middlemen in business models is an example of ________.
Answer: The introduction of middlemen in business models is an example of REINTERMEDIATION.
Explanation: REINTERMEDIATION can be defined as the introduction of an agent acting as a mediator between a producer and the consumer.
An example can be a bakery that sells products directly adding retailer to help in the sale of their products. Which is also the case in the question whereby the travel websites are the intermediary between the airlines and the customers.
Travel websites act as middlemen by facilitating market exchanges and helping consumers to compare options easily, reducing the need to visit each airline's site.
The introduction of middlemen in business models, such as Travelocity, Orbitz, and other travel websites, is an example of market facilitation. Middlemen facilitate exchanges by aggregating information and goods, making it easier for consumers to compare and purchase what is available in the marketplace without the need to individually visit all suppliers or service providers. This is particularly evident in scenarios where large incumbents may use pricing strategies to outcompete new entrants, only to raise prices again once the competition is eliminated.
In the statement of activities, depreciation is reported on Group of answer choices Only depreciable capital assets of governmental activities of the government. All depreciable capital assets of the government except infrastructure assets that use the modified approach. Only depreciable capital assets of business-type activities of the government. All depreciable capital assets of the government.
Answer:
All depreciable capital assets of the government.
Explanation:
In Governmental Accounting Standards Board (GASB) rules, the statement of activities refers to the government's or public entity's income statement. It basically lists total revenues minus total expenses. It is divided into 3 categories:
Expenses - all costs incurred including future payments and depreciation accounts (including both governmental and business-type activities). Program revenue - includes all revenues generated from government services, e.g. garbage collection, municipal utilities, or even parking fines. Net cost of services - used for services that cannot support themselves, like schools, parks, emergency services, etc., which must rely on taxes.A publishing company publishes a monthly magazine. At the end of the year, the Unearned Subscription Income account had a balance of $150,000. During the year, $100,000 of magazines were delivered and income was earned. After the adjusting entry to recognize income is recorded, the Unearned Subscription Income account will have a:
Answer:
The answer is:
An unearned subscription has a credit balance of $50,000.
Explanation:
Unearned Subscription Income is the income that has been received but has not been earned. Unearned subscription income is treated as a liability because the customer can decide to terminate the contract at any time and the fund must be repaid to the customer.
Unearned subscription income balance was $150,000
$100,000 worth of magazine has been delivered
So, the remaining balance in the unearned subscription income is now $50,000($150,000 - $100,000)
Because it is a liability and a debit decreases a liability while a credit increases a liability.
With this, unearned subscription has a credit balance of $50,000.
assume we had a simple economy that only produced mangoes. the velocity of money is 50 and 1000 mangoes are produced. what must be true for the price if the quantity of money increases from 400 to 800? (assume everything else stays constant)
Answer:
The following must be true;
The price must increase by 100%
and;
The price of mangoes goes up from $20 to $40
Explanation:
Here, we are to state what must be correct given the information in the question.
For correct appraisal of the task at hand, we calculate the change using the equation of change.
Mathematically;
The equation of change is as follows
MV=PY
where;
M=money supply , P=price level ,Y=output and V=velocity
From the question, we identify the following;
M=400
When M = 400,
then
400*50=1000P
P=20000/1000=20
When M=800
then
800*50=1000P
P=40000/1000=40
%change =(40-20)/20=1=100%
Nick is a partial owner of Kinsey Electronics and Madison is a partial owner of Goodson Electric. Both Nick and Madison defaulted on personal loans. Madison’s creditors forced her to pay back the loans using money from Goodson Electric, but Nick’s creditors were not allowed to force Kinsey Electronics to pay back Nick’s loans. What is the difference between Nick and Madison?
Answer:
Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership.
Explanation:
Based on the scenario being described within the question it can be said that the main difference between Nick and Madison is that, Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership. This is because a company acts as one entity, therefore the loan is responsibility of all involved and therefore they cannot force Nick to pay back the loans. While in a partnership each individual or owner has their own responsibilities and can be held accountable.
Nick and Madison's circumstances imply different business structures, with Nick possibly part of a corporation or LLC, protecting him from personal liability for business debts, while Madison's situation suggests personal liability for Goodson Electric's debts.
Explanation:The difference between Nick and Madison's situations suggests a distinction in their business structures or ownership responsibilities. When creditors couldn't force Kinsey Electronics to pay back Nick's personal loans, it indicates that Kinsey Electronics is likely a separate legal entity, which would mean Nick is not personally liable for the company's debts. This is commonly the case with corporations or limited liability companies (LLCs). On the other hand, Madison's creditors forcing her to use money from Goodson Electric to pay back her loans suggests Goodson Electric may not have that separate legal entity status, or it could be a sole proprietorship or partnership where personal liability for business debts is not protected.
Dieman Dealers has an investment in Tommy Corporation bonds that Dieman accounts for as a trading security. Tommy Corporation's bonds are publicly traded and the prevailing market price indicates that Dieman's investment is worth $20,000. However, Dieman management believes that the bond market is generally overvalued, and their analysis of the Tommy investment suggests to them that it is worth $18,000. Dieman should carry the Tommy investment on its balance sheet at:
Answer:
$20,000
Explanation:
The reason is that the standard specifically addresses the issue and says that the publicly trading security must be recorded at the market price not on the management estimation. If it was allowed we would never see a loss in the financial statement because everyone would argue that our management estimation says that the asset is worth $1 million more than the current market price. So this is prohibited by the accounting standards.
Blake has managed several restaurants for over 50 years and is close to retirement. With his maturity and business experience, his decisions are sound, based on solid, proven values. Blake tends to be an independent thinker who focuses on empowering his employees. Blake managers at Kohlberg's _____ level of personal moral development.
A. unconventional
B. preconventional
C. nonconventional
D. conventional
E. postconventional
Answer:
E. postconventional
Explanation:
Blake is at a postconventional level of personal moral development according to Kohlberg's model.
In the postconventional level of moral development, people have established personal ethical and moral ideals, and live by those, not necessarily by what is established within a society.
For this reason, they may hold unusual views, and Blake is described in the question as being an independent thinker, which is consistent with the characteristics of this stage.
Pina Colada Corp bought equipment on January 1, 2017. The equipment cost $490000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be:______
a. 35750
b. 420000
c. 143000
d. 167000
Answer:
$322,000
Explanation:
For computing the book value at the beginning of the third year first we have to determine the depreciation expense using the straight-line method which is shown below:
= (Original cost of equipment - expected salvage value) ÷ (estimated life)
= ($490,000 - $70,000) ÷ (5 years)
= ($20,000) ÷ (5 years)
= $84,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation is
= $84,000 × 2
= $168,000
So, the book value is
= $490,000 - $168,000
= $322,000
This is the answer but the same is not provided in the given options
Using the straight-line method of depreciation, the book value at the beginning of the third year for the equipment bought by Pina Colada Corp would be $322000.
Explanation:Pina Colada Corp bought equipment at a cost of $490000 with an expected salvage value of $70000 over 5 years. This company uses the straight-line method of depreciation, which involves a consistent annual depreciation expense over the life of the asset. Here, the depreciation expense is calculated as (Cost of Equipment - Salvage Value) / Life of Equipment which equals $420000/5 that gives $84000 per year. Thus, during the third year, this equipment has already been depreciated for two years, resulting in a depreciation expense of 2 * $84000 = $168000.
The book value at the beginning of the third year is therefore the original cost of the equipment minus the depreciation expense to this point, so $490000 - $168000 = $322000. Therefore none of the answer options provided are correct.
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Leaders who focus on fulfillment of their subordinates' goals and needs as well as trying to accomplish the larger mission of the organization are:a.transactional leaders b.interactive leaders c.considerate leaders d.servant leaders e.job-centered leaders
Answer:
D. Servant leaders
Explanation:
Servant leaders are leaders that are motivated to serve. They are concerned majorly on the growth of individuals serving under them and the community or organization in which they work. He's a leader that leads by serving by working towards the growth and development of his or her subordinates while also focused on achieving the organization overall mission. They are leaders who believe that the only way to excel is in thriving to help others. Team growth and well being and company's growth is prioritize here.
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 3.10 trillions of rupees. Individuals consume: 11.00 trillions of rupees. Individuals save: 4.91 trillions of rupees. Businesses invest: 1.20 trillions of rupees. Foreigners spend: 0.52 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.32 trillions of rupees. Pakistan exports: 1.20 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.
Answer:
Explanation:
GDP = C + I + G + NX
Where, C = Consumption, I - Investment, G - Government Purchases, NX - Net Exports
GDP = 11.00 + 1.20 + 3.10 + (1.20 - 2.32)
= 14.18 trillions of Rupees
What is the acid-test ratio for a merchant with the following account balances?
(Round your answer to two decimal places.)
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
A) 0.75B) 0.41C) 0.60D) 0.81
Answer:
B. 0.41
Explanation:
Given that
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
Recall that
Acid test ratio = (cash + short term investments + current receivables ) ÷ Total liabilities
ATR = (22000 + 41000 + 50000 ) ÷ 275000
ATR = 113000 ÷ 275000
= 0.4109
= 0.41
Note that, inventories is not added because Acid test ratio also called quick ratio compares current asset with current liabilities and inventories can be difficult to sell in current terms.
Answer:
B) 0.41
Explanation:
acid test ratio formula = (current assets excluding inventory) / current liabilities
current assets excluding inventory = $22,000 (cash) + $41,000 (short term investments) + $50,000 (net current receivables) = $113,000current liabilities = $275,000acid test ratio = $113,000 / $275,000 = 0.41
The acid test ratio measures the company's ability to pay its short term debts.
Your project is significantly over budget and behind schedule. It is critical that you determine your projected duration. To gain a better understanding of the project you analyze the sequence of deliverables, activities or tasks to find the ones with the least amount of schedule flexibility. What technique are you using
Answer:
CPM (Critical Path Method) technique
Explanation:
Critical Path Method is the sequence of project network activities that add up to the longest overall duration.
Using four required inputs, it calculates the longest path of planned activities to logical end points, to the end of a project and the earliest and latest that each activity can start and finish without making the project longer. Also determines what can be delayed without making the project longer.
Elliot was asked to privately nominate two of his subordinates for promotion to a sales position. He gave the human resource management director the names of his two top workers, Nick and Allison. This recruitment method is known as ______.
Answer:
targeted recruitment
Explanation:
Based on the scenario being described within the question it can be said that this recruitment method is known as targeted recruitment. This term refers to the process in which organizations or companies focus more on individuals with very specific and unique characteristics when making their selection. These characteristics are usually chosen because they will somehow benefit the role in one way or another.
The National Pork Board developed "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage people to view pork as a tasty alternative to poultry and fishWhich of the following functions was the goal of this public relations campaign?A) influencing government regulations on porkB) gaining financial support for pork producersC) creating newsworthy information about porkD) maintaining relationships with pork producersE) rebuilding consumer interest in pork
Answer:
E) rebuilding consumer interest in pork
Explanation:
Going by the campaign theme "Pork. The Other White Meat", and looking at the strategy of the campaign which involves providing nutritional information and pork recipes, in order to encourage people to view pork as an alternative to poultry and fish, it is obvious that the function of rebuilding consumer interest in pork is the main goal of the public relations campaign that is championed by the National Pork Board.
Contrary to the general opinion and view held by people against pork, the board is trying to portray "pork" as a good meat and an alternative that people can purchase. The nutritional information and pork recipes that are provided would help in rebuilding the interest of consumers in going for pork as an alternative to poultry and fish.
Juan likes to be able to attend his children's soccer games. They typically play around 4 p.m. On the days of the games, he goes into work at 7 a.m. so that he can get off by 3:30 p.m. and go to the game. His company offers:
a. compressed workweeks.
b. flextime.
c. a Results-Only Work Environment.
d. telecommuting.
Answer:
B. Flextime
Explanation:
Flextime is an arrangement or understanding between an employee and employer whereby the employee is allowed to adjust the start time and end time of his workdays as long as he works for the same number of scheduled hours as originally indicated. It is a form a flexible time schedule allowing workers decide when they'd like to resume a workday and finish a workday as long as the scheduled number of work hours per day is maintained. Here, Juan uses flextime in order on days his children plays in order to watch the games.
How does newton's law apply to a company's brand? explain, citing at least one example. the bigger the brand the more force it takes to change where it stands such as let's say apple it would take a big hit to knock them down?
Newton's second law suggest that once in Motion, it does not rest until a force applied, in market terms motion become brand value, and force is innovation.
Newton's Law in Market
As per the question, the brand value of a company is a goodwill of that company in the market, people are attracted because of the brand, there many best smartphones in the market but people are more attracted to two or three brands.
This Brand Value is the Motion of the Newton's second law, in which he argued that something which is motion will not stop until and unless an external force does not stop it. This Force in Market is Innovation, once brandvalue start to come into motion, only the innovation can stop it from growing and vice versa based on which company tends to have best innovative ideas.
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Newton's first law of motion, which states that an object at rest stays at rest and an object in motion stays in motion unless acted upon by an external force, applies to a company's brand by indicating that larger, well-established brands require a significant force to alter their market position, such as Apple.
Newton's first law can be metaphorically applied to a company's brand, suggesting that a strong, established brand like Apple possesses substantial inertia. This brand inertia means it remains dominant and influential unless a significant external force—such as a major scandal, technological failure, or intense competitive pressure—intervenes to disrupt its position.
Brand Inertia:
Established brands like Apple have built substantial market presence and customer loyalty over time.This stability means they are less susceptible to minor market fluctuations and competitive moves.External Forces:
It takes significant events or consistent competitive pressure to challenge and potentially change the position of such a brand.Examples include a major product failure or a groundbreaking innovation from a competitor that redefines market expectations.Apple's strong brand equity and market dominance exemplify how larger brands require substantial external forces to shift their position, illustrating the concept of brand inertia in the context of Newton's first law of motion.
Charles, a single 29-year-old CEO of a technology start-up company, earns a $2 million base salary with a $400,000 bonus. He is not a participant in any retirement plans at work. What is the maximum deductible IRA contribution Charles can make during 2019?a. $0.b. $1,000.c. $4,000.d. $5,500.
Answer:
d. $5,500
Explanation:
An Individual Retirement Account (IRA) which is controlled by the Internal Revenue Service (IRS) is an account that is used to save for retirement while enjoying tax advantages. IRA accounts are limited by the amount that can be contributed each year.
For 2018, 2017, 2016 and 2015, the annual total contributions for any IRA account is $5,500 for people below the age of 50 and $6,500 for people who are 50 years and above.
For 2019 and 2020, the annual total contributions for any IRA account is $6,000 for people below the age of 50 and $7,000 for people who are 50 years and above.
Pamela applies for a life insurance policy with forever young insurance company. when completing the application form about past surgeries, pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated. one year after issuing the policy, pamela died suddenly from a brain aneurysm. forever young denies payment under the policy based on misrepresentation. if pamela's sister, paula, sues forever young, she will most likely
a. win, because once an application has been accepted, an insurer may not use a misrepresentation on the application to avoid liability.
b. win, because pamela's misrepresentation was not a material fact and did not increase forever young's risk in insuring pamela's life.
c. lose, because pamela's application contained a misrepresentation of material fact.
d. lose, because an insurer can always use any misrepresentation on an application to avoid paying.
Answer:
win, because Pamela's misrepresentation was not a material fact and did not increase Forever Young's risk in insuring Pamela's life.
Explanation:
A material fact is defined as the rationality of a person making a decision that is important as opposed to one that is trivial or unimportant. It is a fact that if suppressed would have led to a different decision in a particular situation.
Paula will most likely win the case because the lack of disclosure by Pamela of when she had an infected hang-nail removed and her toe treated cannot be linked by a reasonable person to a brain aneurysm.
This lack disclosure would not have increased the risk of Forever Young in Pamela's life insurance.
A company purchased new equipment for $42,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,200; sales tax paid $3,000; and installation cost, $3,400. The cost recorded for the equipment was:
Answer:
The cost of the equipment recorded is $50,600
Explanation:
In this question, we are to calculate the amount recorded for an equipment purchased by a company.
To calculate this amount, we simply add the original cost and all other costs incurred to get the equipment in place.
Mathematically we have ;
42,000 + 2,200 + 3,000 + 3,400 = $50,600
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently cost $2 and the government wants to reduce smoking by 20%, then by how much should it increase the price?
Answer:
Government should increase the price from $2 to $3.
Explanation:
Price elasticity of demand is calculated by dividing percentage change in quantity demanded by the percentage change in price.
Therefore:
Price elasticity of demand = [tex]\frac{percentage change in quantity demanded}{percentage change in price}[/tex]
From the question, we see that the price elasticity of demand for cigarettes is about 0.4.
Percentage reduction in quantity demanded = 20%
Percentage reduction in price = x
We calculate thus:
0.4 = 20/x
0.4x = 20
x = 20/0.4
x = 50
Percentage reduction in price is therefore 50%
This means that government should increase the price from $2 to $3.
To achieve a 20% reduction in demand for cigarettes with a price elasticity of 0.4, the price per pack needs to increase by 50%, raising the cost from $2 to $3.
The student's question involves calculating the percentage increase in price needed to reduce cigarette consumption by 20%, given a price elasticity of demand of 0.4 for cigarettes. Since the current cost of a pack is $2 and the target is to decrease demand by 20%, we can use the price elasticity of demand formula, which is % change in quantity demanded divided by % change in price.
To find the necessary price increase (∆P), we rearrange the formula where elasticity (E) = (% change in quantity demanded) / (∆P):
E = -0.4 = (-20%) / (∆P)
By multiplying both sides by (∆P) and then dividing by -0.4, we get:
∆P = (-20%) / (-0.4) = 50%.Therefore, a 50% increase in price would reduce demand by the desired 20%. Since the original price is $2, a 50% increase means the new price should be $2 + ($2 * 0.5) = $3.