Answer:
The correct answer is option a.
Explanation:
The purchasing power parity theory states that the exchange rate between the currency of the two countries is determined through the relative value of a basket of goods.
The exchange rate will be in equilibrium when the purchasing power in both the countries will be the same, or the price of the basket of goods is the same in both the countries.
The price of soccer balls in the US is $30.
The price of soccer balls in Mexico is $450 pesos.
The exchange rate should be
= [tex]\frac{450}{30}[/tex]
= 15
This means that each dollar is equal to 15 pesos.
Assume that a comparable worth law is passed that determines that kindergarten teachers and bricklayers have comparable jobs; therefore, workers in both of these occupations should be paid the same wages. Assume that prior to the law, bricklayers were paid a higher wage than kindergarten teachers. Which of the following is the most likely result of the comparable worth law? There will be surplus in the market for bricklayers and a shortage in the market for kindergarten teachers. The equilibrium wage will be the same for kindergarten teachers and bricklayers. There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers. Some former bricklayers will become kindergarten teachers and some former
Answer:
The correct answer is There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.
Explanation:
Comparable value is the abbreviation of "equal salary for work of equal value" or "equal salary for work of comparable value". The doctrine of "comparable value" is an attempt to remedy wage inequalities that result from a long history of work segregated by sex and different salary scales for "female" and "male" jobs. From this point of view, market rates reflect past discriminatory practices and may not be the only basis for deciding current wage equity.
Comparable value refers to the skills and responsibilities of the different jobs, and tries to correlate the compensation with those skills and responsibilities.
Comparable value systems seek to more equitably compensate for jobs performed primarily by women or men by comparing educational and skill requirements, task activities and responsibility in different jobs, and trying to compensate each job in relation to such factors in Instead of the traditional ones, pay for the work history.
Answer:
There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.
Explanation:
Chaletland should _____ interest rates during a recession and _____ interest rates during an economic boom in order to maintain long-run equilibrium.
a) increase; increase
b) decrease; decrease
c) decrease; increase
d) increase; decrease
Answer:
The correct answer is option c.
Explanation:
During the recession, production and investment get reduced. A decrease in the interest rate will reduce the cost of borrowing. This will make borrowing funds for investment cheaper.
As a result, investment spending will increase. As firms invest more they will need more workers. So production and employment will increase as well.
During inflation, there is increased demand and a higher price level. An increase in the interest rate will increase the cost of borrowing. This will make borrowing expensive. Investment spending will decline. This will cause the aggregate demand to reach to its long-run equilibrium level.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall
b. the quantity of butter demanded will fall
c. the demand for butter will fall
d. the demand for butter will rise
e. butter and margarine will become complementary goods, provided that butter is a normal good
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retailing outlet that is owned and operated by a famous brand. The company utilizes this store to sell all its surplus, discontinued, or irregular goods at significantly lower costs. This outlet is an example of a ______
Answer: Off- Price Retail Store
Explanation: An off price retail store also known as treasure hunt is a store that sells at very low prices. They stock wide range of original goods from well known manufacturers and sell at reduced price.
It focuses more on fashion goods from well known designers. The items bought here are well known for quality.
Your financial institution can’t help you if there is a mistake on your bank account statement ?
True or false
Answer:
True, they can and will help you
Explanation:
It is possible that my financial institution can help me if there is a mistake on my bank account statement .
What is bank statement?A bank statement serves as a statement that provides all transactions for a bank account in a particular time.
Therefore, if there is any problem with my bank statement, my financial institution will help to resolve it.
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If you buy a stock at the beginning of the year at a price of $60, the company pays two quarterly dividends to $2 and then raises their dividend to $3 for the last two quarters of the year, and you sell the stock at the end of the year for $63, what was your return?
Answer:
Our return on the stock was 21.6%
Explanation:
In order to find our return on the stock we need to first add all the dividends and the selling price in order to calculate how much cash inflow we got from the cash. Then we will subtract the buying price of the stock from this as this is a cash outflow and by subtracting the buying price we will get the net cash inflow from the stock, we will then divide the net cash inflow by the buying price to get the return on the stock.
Dividend first quarter = 2
Dividend second quarter = 2
Dividend third quarter = 3
Dividend fourth quarter = 3
Selling price = 63
Total cash inflow = 63+3+3+2+2= 73
Selling price = 60
Net cash inflow = 73-60= 13
Return = 13/60=0.216= 21.6%
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period. At the end of the period, the records show that there had been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)
A) $5.17 per direct labor hour.
B) $7.00 per direct labor hour.
C) $6.42 per direct labor hour.
D) $5.84 per direct labor hour.
E) $6.25 per direct labor hour.
Answer:
Option (C) is correct.
Explanation:
Given that,
Estimated overhead cost = $1,540,000
Estimated direct labors (in dollars) = $3,360,000
Estimated direct labor hours = 240,000
Actual overhead cost = $1,240,000
Predetermined overhead rate:
= Estimated overhead cost ÷ Estimated direct labor hours
= $1,540,000 ÷ 240,000
= $6.42 per direct labor hour
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Answer:
Life income with certain period annuity
Explanation:
This type of policy guarantees a certain amount of money during the remaining life of the insured. It also guarantees that during a minimum specified time, the certain period, the payments will be carried out even if the insured dies. In this case the benefits will be paid to his/her beneficiary. The insured determines the certain period when choosing the life insurance plan, and the certain period can vary from 5 to 30 years.
Robert purchased and placed in service $100,000 of 7-year class assets on August 10 of the current year. He also purchased and placed in service $500,000 of 5-year class assets on November 15 of the current year. He does not claim any available additional first-year depreciation. If Robert elects to use the MACRS straight-line method of cost recovery on the 7-year class assets, discuss the calculation of cost recovery for the 5-year class assets?
Explanation:
um I think 1 because I like it
A multinational corporation uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?
Answer:
Exporting
Explanation:
The multinational corporation is using exporting because it is a strategy for entering a international market in which the company's products are sent to a foreign country. This is the most popular strategy that organizations use to go into a foreign market because it allows to reduce the risk of having an operation overseas and to learn before investing in an international market.
Health Wise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement?
A) Trademark
B) Copyright
C) Patent
D) Warranty
E) Treaty
Answer:B) Copyright
Explanation:
A copyright is a legal protection that gives the original inventors of a product the exclusive right to manufacture, sell ,use a product for a limited time.
A copyright prevents others from duplicating a product during the years the copyright is active.
A trademark is a logo of a brand , product or company.
Patent is a legal right given to an inventor that prevents others from using ,duplicating or selling the invention for a period of time usually twenty years.
A warranty is an agreement between a buyer and a seller where the seller agrees to replace or make repairs when certain damages occur to a product within a specified period.
Treaty is a written agreement agreed to by countries and international organisations.
GavelCo Insurance sells an insurance policy to Barry in the state of Colorado. GavelCo violates a Colorado state statute when doing so. Later Barry gets into a dispute with GavelCo over coverage of the insurance policy and wants to enforce the insurance contract. The insurance contract will be_______________.a. unenforceable.b. enforceable, but only if a court finds the contract unconscionable.c. enforceable by both parties, like any other contract.d. enforceable by Barry, the purchaser, and he can recover from the insurer if applicable.
Answer:
d. enforceable by Barry, the purchaser, and he can recover from the insurer if applicable.
Explanation:
The insurance policy is actually sold already to Barry. And now the insurance company is liable for any kind of damages to Barry.
If Barry by any chance has violated any state law of Colorado then he shall be responsible for that. But the insurance company has to make all good to Barry.
As the insurance company cannot withdraw the insurance coverage just because there is violation with some other context and not with the insurance agreement.
The insurance is enforceable and that he can recover from insurance company for any damages caused, if that is covered in insurance policy.
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $800 account of a customer, C. Green. On March 9, it receives a $300 payment from Green. Record the cash receipt from Green.
Answer:
Explanation:
The journal entry is shown below:
On March 9
Cash A/c Dr $300
To Account receivable - Green A/c $300
(Being the cash received is recorded)
For recording the cash receipts we debited the cash account and credited the account receivable account so that the correct posting can be done
All other information which is given is not relevant. Hence, ignored it
According to the law of one price
A. if transaction costs are zero, identical goods should sell for the same price everywhere.
B. if transactions costs are zero, all firms must earn the same profit margin.
C. there must be no differences in the cost of producing identical goods by different producers.
D. if transactions costs are zero, firms must sell a product at a price equal to its marginal cost.
Answer: Option A
Explanation: In simple words, law of one price refers to the theory which states that, when the market is free and there is flexibility present in transactions then two identical products should sell for same amount in two markets using the same currency.
As per the law of one price, the brokers and dealers do not have any scope of arbitrage resulting in no further scope of earning abnormal profits. Hence from the above we can conclude that the correct option is A
Brenda graduated with her B.A. in business administration and was surprised when she was told she was unqualified to run the human resources department in several companies without work experience. Now she must decide what to do as a stepping stone to reach her goal.
Which option best fits Brenda's goals?
a.Take a lower level job in a human resources department for experience.
b.Move to a bigger city where there is a greater need for human resources directors.
c.Go to graduate school to build her educational credentials.
d.Earn a bachelor's degree in a different subject for flexibility.
Answer:
a.Take a lower level job in a human resources department for experience.
Explanation:
For Brenda to be able to progress to the next stage, she needs to address the issue holding her back. From the feedback that Brenda has received, she needs work experience to run a human resource departments. Brenda should then find a way of adding work experience to her credentials.
The most appropriate way for her to gain experience is by taking a lower level job in a human resource department. By doing so, Brenda will gain hands on experience on human resources operations. She will get an opportunity to work under a manager. That way, she will acquire the practical skills of a human resources manager.
In the early 14th century, the agricultural economy in Europe had begun to:
a. fail due to papal restrictions on monastic houses.
b. fail due to climate change and excessive cultivation.
c. regain levels achieved in the late Roman Empire.
d. improve due to rising average temperatures."
Answer:
B) fail due to climate change and excessive cultivation.
Explanation:
Many problems that modern civilization is currently facing where also a problem hundreds of years ago. An example of this is that excessive agriculture during the middle ages in Europe lead to the reduction of forests (which lowered rain levels) and the wear out of soil which eventually ended up reducing the amount of crops and hurting local economies. That lead to an increase in the amount of poor farmers that left the countryside and moved into larger cities.
Irene Rosenfeld, the CEO of Kraft, compares the sales figures for Oreos in China against the sales figures for Oreos in the United States, and she concludes that the original Oreo cookie may not work in China.
Answer:
The correct answer is Compare performance and standards.
Explanation:
Control is a cyclical and repetitive process. It is composed of four elements that follow one another:
Setting standards: It is the first stage of control, which sets the standards or criteria for evaluation or comparison. A standard is a standard or criterion that serves as the basis for the evaluation or comparison of something. There are four types of standards; which are presented below:
Quantity standards: As production volume, quantity of stocks, quantity of raw materials, number of hours, among others.
Quality standards: As control of raw material received, production quality control, product specifications, among others.
Time standards: As standard time to produce a certain product, average time of stocks of a particular product, among others.
Cost standards: As production costs, administration costs, sales costs, among others.
Performance evaluation: It is the second stage of control, which aims to evaluate what is being done.
Comparison of performance with the established standard: It is the third stage of the control, which compares the performance with what was established as a standard, to verify if there is deviation or variation, that is, an error or failure in relation to the expected performance.
Corrective action: It is the fourth and last stage of the control that seeks to correct the performance to adapt it to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.
Which of the following statements is NOT true?
A. A net requirements plan adjusts for on-hand inventory.
B. Distortion can be minimized when safety stock is held at each workstation, rather than at the finished goods or raw material levels.
C.MRP software programs are popular because manual approaches are slow and error-prone.
D.Gross material requirements assume that there is no inventory on hand.
MRP software programs are popular not just due to manual drawbacks; they enhance accuracy and efficiency in production management. So, the correct choice is option C.
The statement that is NOT true is C. MRP (Material Requirements Planning) software programs are popular not only because manual approaches are slow and error-prone but also due to their ability to enhance accuracy, efficiency, and responsiveness in managing production processes.
Option A is true as a net requirements plan indeed adjusts for on-hand inventory. It considers the existing stock when determining the actual need for additional materials, facilitating a more precise production planning process.
Option B is true. Minimizing distortion by holding safety stock at each workstation rather than at higher levels, such as finished goods or raw material levels, can enhance responsiveness and reduce the bullwhip effect in supply chains. This practice helps align inventory levels more closely with actual demand at different stages of production.
Option D is true as gross material requirements assume no inventory on hand. It represents the total material needed for production without considering existing stock, providing a basis for determining the overall demand for materials.
In summary, option C is NOT true, as MRP software programs are popular not only due to the drawbacks of manual approaches but also for their positive impact on accuracy and efficiency in managing material requirements.
The leadership styles of ________ originally included supportive and achievement-oriented and two others, but was more recently revised to include a total of eight styles. Multiple Choice House’s path-goal model
1) Greenleaf's servant leadership model
2) House's path-goal model
3) leader-member exchange model
4) Fiedler's contingency model
5) LMX model of leadership
Answer:
2) House's path-goal model
Explanation:
Based on the information provided within the question it can be said that the he leadership styles of House's path-goal model. This model is based on choosing a style that most perfectly fits the employee and work environment in order to be able achieve the goal. This is done in order to improve employee satisfaction which would cause them to become more productive and efficient members within the organization.
Marina is on vacation in Jamaica and buys a bottle of rum for about half the price she would pay for the same bottle at home. The rum is not on sale in Jamaica but is priced lower because that's the price the market will bear. What is this an example of_________
Answer:
The competitive advantage of the countries producing goods and services
Explanation:
The countries have advantage when they produce some goods, some countries try to specialize in the produccion certain goods, because they have climate, or ather advantage. There is also some taxes that increases the price of the imported goods, because they are cheaper than the same product that is produced locally, and the goverment protect with the tax the local producers that have a higher cost and do not have advantages, that is why the price is higher in Marina´s country.
Final answer:
This is an example of market pricing based on demand and supply. The lower price of the rum in Jamaica compared to Marina's home reflects the market setting a price that buyers are willing to pay.
Explanation:
This is an example of market pricing based on demand and supply. Market prices are determined by the interaction between buyers and sellers in a market. In this case, the price of rum in Jamaica is lower because it is the price that the market will bear, meaning that it is the price that buyers are willing to pay.
Market prices can vary based on factors such as supply and demand, competition, production costs, and consumer preferences. When the market price of a product is lower than what it would cost in another location, it can provide economic benefits for buyers in that location.
For example, if Marina were to buy the same bottle of rum at home, she would have to pay a higher price due to factors like taxes, import costs, and other expenses. However, in Jamaica, where rum is produced and readily available, the price is lower.
Which of the following is true about product markets?
A. Goods and services flow from households to firms.
B. Factors (land, labor, capital, and entrepreneurial ability) flow from households to firms.
C. Factors (land, labor, capital, and entrepreneurial ability) flow from firms to households.
D. Goods and services flow from firms to households.
Answer:
The correct answer is option D.
Explanation:
A product market deals with goods and services. In a product market goods and services are supplied by firms and businesses and purchased by households.
The households in exchange pay businesses and firms which is known as consumer spending for households.
A product market is concerned with the flow of finished goods and services, it does not involve trade in raw materials and other intermediate goods.
In product markets, goods and services flow from firms to households. Households provide factors such as land, labor, and capital to firms, which in return produce goods and services that flow back to the households.
Explanation:The correct answer is D. Goods and services flow from firms to households. In a traditional economic model, households provide factors such as land, labor, capital, and entrepreneurial ability to firms. In return, firms use these factors to produce goods and services, which are then supplied back to the households in the product market. This is known as the flow of goods and services. An example could be a household providing their labor (considered a factor) to a company, and in return, the company pays them with money, which the household uses to buy goods and services from the company.
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On January 1, 2016, Yi Corporation received cash from issuing 10-year $100,000 bonds at face value. The interest of $5,000 is paid annually to the bondholders on December 31. How do the issuance of the bonds and the payment of the interest affect Yi's financing activities section of the statement of cash flows for 2016?
Answer: The issuance of the bonds affect the financing activities of the cash flow section positively as 100,000 cash is coming in by issuing the bond so this is a positive cash flow due to financing activities.
However the interest payment will not affect the financing activities section of the cash flow because interest payments are part of the operating cash flows according to U.S GAAP interest paid is an operating activity in the cash flow.
Explanation:
Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less chicken than they did in the CPI base year. In this situation the CPI will tend to ______ inflation as a result of ______ bias
a) overstate; substitution
b) understate; substitution
c) accurately measure; substitution
d) overstate; quality adjustment
Answer:
The correct answer is option a.
Explanation:
The consumer price index or CPI is a measure to calculate the change in the price level or the rate of inflation. It calculates the changes in the price of a basket of goods generally purchased by the consumers.
But CPI does not always accurately calculate inflation. It involves substitution bias and quality adjustment bias.
For instance, when the price of chicken increases as compared to the price of turkey, the consumers will buy more turkey and less chicken. So the consumer expenditure will not increase as they will be substituting turkey for chicken.
But the CPI will increase with an increase in chicken price. An increase in CPI implies an increase in inflation, so inflation will be overstated.
Andrew, a project manager in a multinational company, accepts a very challenging project from his client as he feels that the employees have the capacity for imagination, creativity, and ingenuity in them to complete the project. In this scenario, Andrew's attitude toward his workers is consistent with the assumptions of _____.
A. Theory X
B. Theory Y
C. expectancy theory
D. equity theory
Answer:
B. Theory Y
Explanation:
In Theory Y, the manager believes employees are internally motivated, creative, imaginative and have ingenuity. Employees are given more difficult tasks with less supervision.
From the above description of theory Y, Andrew's behaviour is consistent with theory Y.
In theory X, managers believe that employees are lazy, unimaginative and pursue their personal interests. Managers have to coerce employees to work through strict supervision, punishments and laws
Expectancy theory states that people choose the option that maximises benefit and minimises pain.
Equity theory focuses on the fair distribution of resources.
Marin Inc. issues $263,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Explanation:
The journal entry is shown below:
On March 1, 2017:
Cash A/c Dr $257,740 ($263,000 × 98%)
Discount on issue of bonds A/c $5,260 ($263,000 × 2%)
To Bonds payable A/c $263,000
(Being the sale of bonds is recorded)
While recording the sale of bonds we debited the cash account and the discount on issue of bonds and credited the bonds payable account
Final answer:
To record Marin Inc.'s issuance of $263,000 bonds at 98, a journal entry should debit Cash for a $257,740 Discount on Bonds Payable for $5,260, and credit Bonds Payable for $263,000.
Explanation:
When Marin Inc. issues $263,000, 10-year, 7% bonds at 98, the company is selling the bonds for less than their face value. At 98, the bonds are sold at 98% of their face value, meaning that investors are purchasing the bonds for $257,740 (which is 98% of $263,000). To record the sale of these bonds, the journal entry on March 1, 2017, would be:
Debit Cash for $257,740 (98% of $263,000).Debit Discount on Bonds Payable for $5,260 (the difference between the face amount and the cash received).Credit Bonds Payable for the face amount of $263,000.The discount on the bonds payable account reflects that the bonds were sold for less than their face amount and it is considered a contra account to bonds payable. This discount will be amortized over the life of the bonds.
You are the production manager of an electronics company and learn from the marketing manager that there is an unexpected high demand for your new product. You are confident your operation can produce enough goods to meet the demand with the equipment and labor force you have. What type of production do you manage?
You are managing flexible production where you can smoothly adjust to changes in demand and supply conditions. As demand for your product increased, you are capable of ramping up production using your current workforce and technology.
Explanation:You are managing a type of production known as flexible production. This means you are able to adapt to changes in demand and supply conditions smoothly. Here, the unexpected high demand for your product led to an increase in both the output price and profitability. This, in turn, influenced you to demand more labor to increase production. Flexible production allows you to increase production without needing to make significant changes to your facilities or labor force.
Furthermore, in this context, technology refers to several methods of combining inputs to produce outputs. The key is to search for a production technology that enables you to produce the desired level of output at the lowest cost, hence maximizing profits. For instance, the firm might opt to hire more labor or invest in more efficient machinery to enhance production.
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A company produces four reports in its responsibility reporting system, one for each level of management: department managers, plant managers, division managers, and the company vice president (listed in order of responsibility). Which statement is correct concerning the content of the respective reports?
Answer:
Explanation:
The department manager sees controllable costs of his or her respective department
Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has been increased 15 percent, so she decides to buy some peppermint tea instead. Which of the following problems in the construction of the CPI is this situation most relevant to?a) substitution bias.b) introduction of new goods.c) unmeasured quality change.d) income effect.
Answer:
The correct answer is A that is substitution bias
Explanation:
Substitution bias is the bias in the economic index numbers, if that do not incorporate the data on the consumer expenditures then the customer will switch from relatively more expensive products or items to the cheaper ones due to the change in the price.
As, the price of that produce has increased so, the customer shifted or preferred to buy the product which is cheaper in price. Therefore, it is referred to as the Substitution bias.
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a ________ pricing strategy.
Answer:
Margin
Explanation:
When you use an indicator like a return over something else (in this case over the investment) the demand is around having a margin over a quantity, so the indicator in this case could be operational margin or net margin but all of the over the sales.
Answer:
The answer is: Target return pricing strategy
Explanation:
Target return pricing is the process of setting prices based on an estimate of a competitive market price. Thereafter, a firm's required return or target profit margin is added to the price to determine a final selling price. Based on this final price, the cost of production is estimated so as to determine the cost constraint per manufactured item or unit of service provided. Naomi has determined that the return on investment is 20% . This margin would be added to the price to arrive at a final selling price for the industrial building supplies after which cost constraints would be set.
Tony's Carpets wants to charge $9.80 a yard for installing a carpet for Serenity Bookstore but accidentally states $8.90 a yard in the bid. Serenity Bookstore accepts Tony's bid. Tony's carpets made a ___ mistake.
a. bilateral
b. unilateral
c. mutual
d. rescission
e. fraudulent
Answer:
The correct answer is (B)
Explanation:
The unilateral mistake can incorporate various parts of the agreement including explicit laws, facts, or term definitions. Going into a legitimate agreement necessitates that the two gatherings completely comprehend the terms and duties of the agreement. A case of a unilateral failure happens when one of the gatherings does not understand every aspect of the agreement. Unilateral failures will in general be more typical than bilateral when managing contracts.
Final answer:
Tony's Carpets made a unilateral mistake by accidentally stating $8.90 a yard in the bid instead of the intended $9.80 a yard, which Serenity Bookstore accepted. This error was made by Tony's Carpets alone and does not involve any mistake on the part of Serenity Bookstore. The correct option is b.
Explanation:
Tony's Carpets made a unilateral mistake. A unilateral mistake occurs when only one party to a contract is mistaken about a material fact and the other party is or should be aware of the mistake. In this scenario, Tony's Carpets intended to charge $9.80 a yard for installing carpet but mistakenly put $8.90 a yard in their bid to Serenity Bookstore, which Serenity accepted. This mistake was made solely by Tony's Carpets, without Serenity Bookstore contributing to the error, making it unilateral. A would involve both parties being mistaken about a material fact, which is not the case here. Mutual mistake would mean both parties share the same erroneous belief about an important fact, which also does not apply. A rescission is a remedy to nullify a contract, which might be sought after a mistake is discovered. Lastly, there is no evidence of a fraudulent mistake here, which would involve intentional deception by one party.