Answer:
c. Comprehensive income.
Explanation:
According to my research on different investment strategies, I can say that based on the information provided within the question the term being described is called Comprehensive Income. Like mentioned in the question this type of income includes all changes in equity during a period except those resulting from investments by owners of the stocks and distributions to those owners (dividends).
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Comprehensive income is the correct term for income that includes all changes in stockholders' equity during a period except those from stockholders' investments and distributions.
Explanation:The correct answer to the question is c. Comprehensive income. Comprehensive income includes all changes in equity during a period except for those resulting from investments by stockholders and distributions to stockholders. It incorporates items that are not included in the net income, such as unrealized gains and losses on certain types of investments, foreign currency translation adjustments, and certain pension adjustments that are recorded directly in equity, according to the accounting standards. These items are part of what is known as other comprehensive income (OCI), which is the difference between net income and comprehensive income.
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Mona is comparing financing rates from a car dealer and her local bank. The dealer is offering zero down and zero percent financing for 36 months, whereas her bank is offering her a 3.5% annual rate on a five year loan and requires a 10 percent down payment. If Mona accepts dealer financing,
A) her payments may be higher than bank financing.
B) her payments will always be less than bank financing.
C) the dealer will make a lower profit.
D) the dealer will require a higher down payment.
Answer:
If Mona accepts dealer financing,A) her payments may be higher than bank financing.
Explanation:
Dealer
10000 3333,33
3333,33
3333,33
Bank
Due" Additional Payment Interest Principal Balance
10.000
2.214,81 350,00 1.864,81 8.135,19
2.214,81 284,73 1.930,08 6.205,11
2.214,81 217,18 1.997,63 4.207,48
2.214,81 147,26 2.067,55 2.139,93
2.214,83 74,90 2.139,93 0,00
Every financial market performs the following function:
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to borrowers-spenders.
Answer:
D) It channels funds from lenders-savers to borrowers-spenders.
Explanation:
Financial market
The marketplace where trading of securities like the equities , currencies , bonds and bonds are done .
There are small as well as large financial markets available .
The stock market is also an example of a financial market as it enables the investors to sell and buy shares of the companies .
Salary Payable at the beginning of the month totals $ 20 comma 000. During the month, salaries of $ 120 comma 000 were accrued as expense. If ending Salary Payable is $ 14 comma 000, what amount of cash did the company pay for salaries during the month?
Answer:
Salaries paid during the month were $126,000
Explanation:
Given:
Beginning salary payable = $20,000
Salary expense accrued during the month = $120,000
Ending salary payable = $14,000
Salaries paid during the month is computed as shown below:
Salaries paid = (Beginning salary + Accrued salary expense) - ending salary payable
= (20,000 + 120,000) - 14,000
=$126,000
Therefore, salaries paid during the month were $126,000.
Sue, a resident of Somerset County, Maryland, and David, a resident of Broome County, New York, are fighting over land located in Sussex County, Delaware. Under traditional rules of venue, the trial to determine ownership would take place in _______.
Answer:
Sussex County
Explanation:
According to my research on property ownership disputes, I can say that based on the information provided within the question the trial to determine ownership would take place in Sussex County. This is because according to United States laws on real estate and land ownership, all land ownership disputes are handles in the courts of the location in which the land being disputed is located.
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Under traditional rules, the legal dispute over property ownership would be held in Sussex County, Delaware, where the disputed land is located.
Explanation:In traditional property law disputes, the venue for a trial is generally the location where the disputed property is situated. In this case, Sue from Somerset County, Maryland, and David from Broome County, New York are disputing over land located in Sussex County, Delaware. Therefore, under traditional rules of venue, the trial to determine ownership would take place in Sussex County, Delaware, regardless of where the parties themselves reside. The options provided (Bucks County, Pennsylvania; Nassau County, New York; near Newark, New Jersey; near Pittsburgh, Pennsylvania) do not include the location of the disputed land, thus they do not apply.
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You manage a software development group with team members in North America, South America, and Asia. Your boss wants you to write a status report about your group's activities. You need key team members to contribute to the report, but doing so is challenging when team members are in so many different time zones. Which writing tool is likely to benefit you most on this project?
Answer:
Google Docs.
Explanation:
I think is the best option due to the time zone differences. Everybody can contribute writing something and save it, so other people can correct or continue typing online.
Answer:B
Explanation:
just got it right
Juana looked at her September issue of O magazine and did not see anything of interest. However, after her mother was diagnosed with bipolar disorder, Juana found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The fact that the boring issue became quite interesting is most directly due to a change in Juana's ________.
A) exposure
B) cultural values
C) attention
D) personality
Answer: attention
Explanation: The given case illustrates the concept of selective attention.
Selective attention refers to the situation when an individual focuses on a particular aspect of a vast subject matter due to his or her specific need or preferences.
In the given case, Juana found the magazine interesting because of the topic regarding a disease was covered in the magazine from which her mother was suffering.
Therefore, we can conclude that the correct option is C.
Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash infusion from a product line that had a dominant market share. The small appliance industry is a slow-growth one. The small appliances product line is most likely a __________ for Black & Decker
a. Dog
b. Cash Cow
c. Question mark
d. Star
e. Problem Child
Answer:
The correct answer is b. Cash Cow.
Explanation:
Multinationals look beyond their core business for additional sources of income to increase their income statement. Secondary income is those from products or services that differ from the main ones within a business. And despite their name, they can play a leading role in a brand's strategy and can give a vital boost to a company's revenue.
Which of the following actions explains mass customization? Firms tailor their products and services to meet a customer's particular needs on a large scale. Firms provide immediate communication and feedback to and from customers. Firms provide ways for clients and firms to conduct business online without human assistance. Firms market their products and services over vast distances. Firms link Web sites to corporate databases to provide real-time access to personalized information.
Answer: Firms tailor their products and services to meet a customer's particular needs on a large scale.
Explanation: As the name suggests mass customization refers to customizing at a large level. In simple words it refers to a process in which an organisation combines the benefits of mass production with the benefits of customization.
This is done by the organisations when the majority of customer base is asking for a particular change or addition in the existing commodity.
Hence from the above we can conclude that the correct option is first statement.
Which of the following processes is responsible for releasing the energy captured during photosynthesis? Select one: a. Elimination b. Cellular Respiration c. Absorption d. Digestion e. Transpiration
Answer: The correct answer is Option b.
Explanation:
Photosynthesis reaction is defined as the process in which plants make their own food with the help of carbon dioxide and water in the presence of sunlight. The energy is captured in the form of ATP during this process.
For the given options:
Option a: EliminationElimination reactions are defined as the reactions in which a kind of atoms or groups of atoms leave the molecule. This process is not seen in photosynthesis reaction.
Option b: Cellular respirationChemical energy stored in food is the source of the energy that is required to regenerate ATP. The process in which energy is released from food by a series of enzyme-controlled reactions is called cellular respiration.
Option c: AbsorptionAbsorption is defined as the process which involves a reaction between the substance being absorbed and the absorbing medium.
Option d: DigestionDigestion is defined as the process by which complex food molecules are broken down into simple molecules that can be absorbed by the body for nutrition.
Option e: TranspirationTranspiration is defined as the process where plants absorb water through their roots and then give off water vapor through the pores from their leaves.
From the above information, the correct answer is Option b.
When resources are allocated by markets, profits and losses provide information about
A. which products are priced too high and which are priced too low.
B. which resources are being used productively and which resources should be allocated to other uses.
C. which industries need to be subsidized and which need to be subject to additional regulation.
D. which businesses should be taxed more heavily and which should be subsidized.
Answer:
The correct answer is B. which resources are being used productively and which resources should be allocated to other uses.
Explanation:
The allocation of resources is the distribution of productive assets in their different uses.
The issue of resource allocation originates from how societies seek to balance limited resources such as capital, labor and land, in the face of the diverse and unlimited needs of its members. Resource allocation mechanisms cover the pricing system in free market economies and government planning, either in state-operated economies or in the public sector of mixed economies.
Gains and losses determine how effective a product / service is being in the market, and what actions can be taken to be able to route them correctly. In periods where there is a margin of sustained loss, it is necessary to revalue the relevance of the investment, because it can be channeled towards assets that generate value and therefore economic growth.
Free cash flow describes the net cash provided by operating activities after adjusting for A : current liabilities. B : both capital expenditure and dividends paid. C : capital expenditures only. D : dividends paid only.
Answer:
The answer is B, both capital expenditure and dividends paid.
Explanation:
In the Statement os Cash Flow, cash provided by operating activities fails to take into account that a company must invest in a new property, plant, and equipment and must maintain dividends at current levels to satisfy investors.
Free cash flow describer the net cash provided by operating activities after adjusting for capital expenditures and dividens paid.
Gordon makes a trip to his financial institution one morning. He has conducted all of his banking transactions at the institution for more than twenty years. Today he walks out with a loan on his new home and one for a new boat. What method of financing has Gordon secured
Answer: Commercial financing
Explanation: In simple words, commercial financing refers to the financing by the banks or other such financial institution. The financing is done by banks in the form of loans which are secured by any relative assets. However, banks sometimes lends on the basis of cash flows.
In the given case, Gordon took a loan from the financial institution for a new home and a boat.
Hence from the above we can conclude that Gordon has used commercial financing.
Jorge Martinez is a well-educated entrepreneur who operated a small business in his home country of Florentina. At the encouragement of his American relatives, Jorge recently immigrated to the United States and applied for U.S. citizenship. "In Florentina, tax rates were very high," Jorge complained. "The government used the taxes I paid to finance all sorts of social programs to help the less fortunate. While this is a noble goal, it has really undermined the profit incentive of individuals such as me. I really feel that these high taxes have stifled economic growth." Jorge's comments illustrate the reason many socialist countries are experiencing a(n):
Answer:
brain drain
Explanation:
According to my research on economy and politics in certain countries, I can say that based on the information provided within the question these comments illustrate the reason many socialist countries are experiencing a brain drain. When speaking in terms of population and immigration, this term refers to the emigration of highly trained or qualified people from a particular country to another.
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Jose deposits a $400 check in College Bank. The reserve requirement is 20%. Required reserves are $_____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices 80 320 400 480
Answer:
80
Explanation:
As for the required reserve balance the information is provided as follows:
Total amount deposited by Jose = $400
Provided the reserve balance = 20%
Therefore, reserve balance from this payment = $400 [tex]\times[/tex] 20% = $80.
As it is not specified clearly, that this $400 is inclusive or exclusive of the reserve balance, it is assumed that reserve will be created out of such balance.
Therefore, reserve maintained from this $400 = $80 and the rest $400 - $80 = $320 will be usable freely, without any restrictions.
The true test of supply’s contribution is when the chief executive officer and the management team recognize that supply and suppliers are critical to organizational success and competitive advantage.True or False
Answer:
True
Explanation:
Suppliers contribution of the suppliers and supply are critical to organizational success and competitive advantage because the price of products/materials and quality of the products /materials offered by the supplier and it must be given in the right amounts and in the right time which is important in making quality and cheaper finished products in gaining customer satisfaction(organizational success) and a competitive advantage
Financial reports provide information that can reduce investors' uncertainty about the company's opportunities and risks, thereby raising the company's cost of capital.a)trueb)false
Answer:
False
Explanation:
The given statement is false Financial reports does not provide information that can reduce investors uncertainty about the company's opportunities and risks, thereby raising the company's cost of capital.
Financial report of a company contains balance sheet, income statement and discussion of the management. It also indicate company's financial health and earning potential. But it cannot reduce the risk of investors uncertainty.
Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?a. Mary's offer is an option contract and she cannot revoke the offer.b. Mary's counteroffer terminates Carl's offer of $1,500.c. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?d. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.
Answer:
Which of the following is correct?
b.
Explanation:
b. Mary's counteroffer terminates Carl's offer of $1,500
Which of the following is the process of assessing the firm's internal and external environments?
A. Business portfolio analysis
B. Market growth rate analysis
C. Situation analysis
D. Sustainability analysis
E. Product development analysis
Answer:
C.
Explanation:
A situation analysis defines where you are today, in terms of your product, market, customer and competition.
The systematic collection and study of past and present data to identify trends, forces, and conditions with the potential to influence the performance of the business and the choice of appropriate strategies. The situation analysis is the foundation of the strategic planning process. The situation analysis includes an examination of both the internal factors (to identify strenghts and weaknesses) and external factors (to identify opportunities and threats). It is often referred to by the acronym SWOT.
An investment's possible payoffs are −10 percent, 10 percent, and 30 percent. The probabilities that these payoffs will occur are 0.30, 0.40, and 0.30, respectively. What is the expected rate of return on the investment?
Answer:
The expected rate of return on the investment is 10%
Explanation:
Expected rate of return is calculated as a weighted average of all possible payoff. It is calculated by multiplying potential payoffs by the chances of occurring and then adding these results.
In this case
Payoffs= −10 percent Probabilities 0.30 (30%)
Payoffs= 10 percent Probabilities 0.40 (40%)
Payoffs= 30 percent Probabilities 0.30 (30%)
Expected rate of return= -10% x 30% + 10% x 40% + 30% x 30%
Expected rate of return= -0.03+0.04 + 0.09=0.1
Expected rate of return= 10%
Data that are important to deciding whether to replace old equipment include all but which of the following?
a. estimated annual variable cost of operating the new machine
b. purchase price of the new machine
c. estimated selling price of the old machine
d. the book value of the old equipment
Answer:
C.
Explanation:
The estimation of the selling price of the old machine is not good data to make a decision in this case. Instead, book value, annual variable costs, even the purchase price of the new machine, are strong data to decide wether replace it or not.
Because all these options are related to actives of the company, so, to make a decision of replacements we need top analysis actives and compare them with the hypothetic results with the new machine.
The data that are important to deciding whether to replace old equipment include all but option ( d.) the book value of the old equipment.
The book value of the old equipment is a financial term that represents the original cost of the equipment less the accumulated depreciation.
While deciding whether to replace old equipment, the book value is not a critical factor to consider. The book value does not show the current market value of the equipment. The decision to replace old equipment should be based on factors such as the estimated annual variable cost of operating the new machine, the purchase price of the new machine, and the estimated selling price of the old machine.
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Smith and Associates had $55,000 in cash at year-end 2012 and $15,000 in cash at year-end 2013. Cash flow from long-term operating activities totaled $–240,000, and cash flow from investing activities totaled $130,000. What was the cash flow from financing activities?
Answer: negative balance of $410,000
Explanation: The given activities relates to the cash flow statement. The cash flow statement shows the uses and sources of cash within an accounting period so that the accountant can calculate and analyze the change in balance of cash from beginning to the end.
Therefore,The sum of the balance of three activities and the opening balance is equal to the ending cash balance. Hence :-
$55,000 + $240,000 + $130,000 + financing activity balance = $15,000
therefore,
financing activity balance = ($410,000)
A client who is newly diagnosed with hypertension is going to be starting antihypertensive medicine. What is one of the main things the client and the client's spouse should watch for?
Answer:
the main things the client and the client's spouse should watch for is dizziness
According to scott hinshaw, domino's executive vice president of franchise operations, development, and training, domino's has about 9,400 franchises globally. To be successful worldwide, it is vital to have work experience abroad so that you understand the local culture and language and can develop solutions to challenges that might arise. This belief is most likely indicative of which approach to international business?
This belief is most likely an indication of Polycentric approach.
The Polycentric approach refers to the method of recruiting internationally in which the Human resources recruit personnel to carry out operations of the company’s branches.
In other words, it is a method that involves hiring employees who are nationals of the country where the business branches are located.
Further ExplanationIn polycentric approach, the company employs personnel for a managerial position to coordinate the day to day activities of the subsidiary company.
The reason why most companies use this approach is that the citizens of the host country have a better knowledge of their culture and can effectively direct the affairs of the subsidiary company.
However, this recruitment method has advantages and disadvantages.
The Advantages of polycentric approachThe chances that the subsidiary company would attain its full potential are very high.The hiring cost of the citizens of the host company is very lowThere will be increased productivity because employee fully understand the host marketThe Disadvantages of polycentric approachIt is very difficult to manage the subsidiary companyDifferent in thinking between the parent company and the subsidiary managers may result in conflicts.Language barriers can create ineffective communication between the parent company and the host employees which could also result in conflict.LEARN MORE:
Polycentric https://brainly.com/question/1369878KEYWORDS:
polycentric approachcompanynationalscostcommunicationemployeesAnswer:
This conviction is in all likelihood a sign of Polycentric approach.
Explanation:
The Polycentric approach alludes to the strategy for selecting universally where the Human assets enlist faculty to do activities of the organization's branches. As it were, it is a strategy that includes procuring workers who are nationals of the nation where the business branches are found.
The motivation behind why most organizations utilize this methodology is that the residents of the host nation have a superior information of their way of life and can adequately coordinate the undertakings of the auxiliary organization.
Which resource management activity identifies and verifies that personnel are qualified for a particular position? A. Qualifying B. Planning C. Certification D. Credentialing
Answer:
D . Credentialing
Explanation:
It is usually carried out at the beginning of employment (initial application) and subsequently at regular intervals (re-election). The accreditation of suppliers or other organizations can begin before the purchase process and be repeated regularly.
The unemployment rate may underestimate the true extent of unemployment if:
a. many part-time employees would like to work fulltime, but are unable to get the additional work.
b. employees increase the number of hours they work overtime.
c. there are a large number of people working in the underground economy.
d. people are pretending to look for work so that they can continue receiving unemployment benefits.
Answer: c.
Explanation: The unemployment rate may underestimate the true extent of unemployment if there are a large number of people working in the underground economy . While the underground economy also known as the black economy may conjure up images of drug deals and prostitution rings, the term actually has much broader scope. It refers not only to illegal economic activity, but all economic activity that goes unreported to government authorities and consequently, avoids being taxed. one of the primary reasons the underground economy exists is that people are trying to evade taxes. But increased government regulations that can make the cost of doing business higher also create an incentive to avoid reporting certain economic activity to the government. An increase in the number of unemployed increases the number of people who work in the black economy because they have more time. On the other hand, an increase in unemployment implies a decrease in the shadow economy.
Henry, the vice president of Walnut Corp., has observed that the sales team and the marketing team are often fighting over shared resources after the company encountered a financial crisis. This scenario illustrates the concept of _____.A) team cohesivenessB) team synergyC) team autonomyD) team conflict
Answer:
The correct answer is A) team confict
Explanation:
You can talk about team conflict when there is a problem in the team that affects results or they are not able to work in an optimun way.
Team cohesivness is when the members work together and united in the pursuit of a common goal.
Team sinergy is when the result of working together is better than the result of the work of all the members added when they work separated
Team autonomy is when a team can work without the incluence of an otside party
Peter, who works at a go-kart manufacturing company, Parts for Karts Co., became aware after talking with co-workers that he was being paid substantially less than workers with the same experience and level of seniority. After noticing this, he decided to pursue a lawsuit against Parts for Karts Co. for wage discrimination. However, when Peter was hired, he had signed a binding arbitration clause in his work contract. When Parts for Karts moved to compel arbitration, a state court granted its motion. During arbitration, the arbitrator decided that Parts for Karts had not discriminated against Peter, and that Peter should pay for any lawyer fees that Parts for Karts had incurred.
But what if the facts in this case changed? For each fact change below, select whether you would agree that the fact change would affect the result of the arbitration agreement.
Check All That Apply
A. Peter requests that mediation be pursued in lieu of arbitration. But Parts for Karts desires only arbitration, and will not tolerate mediation. Peter requests that mediation be pursued in lieu of arbitration. But Parts for Karts desires only arbitration, and will not tolerate mediation.
B. The arbitrator displayed bias and exceeded her authority. The arbitrator displayed bias and exceeded her authority.
C. Peter is discontent with the decision of the arbitrator and decides to appeal to a district court. Peter is discontent with the decision of the arbitrator and decides to appeal to a district court.
D. Instead of signing a binding arbitration clause in the original work contract, Peter and his contractor commit to a Submission Agreement.
Answer:
I believe the only fact change that can affect the result is only option B. he arbitrator displayed bias and exceeded her authority.
But I will help you analyze each option one By one.
Explanation:
A .Peter requests that mediation be pursued in lieu of arbitration. But Parts for Karts desires only arbitration, and will not tolerate mediation.
This will not affect the result
Mediation is imitated if both parties involved had the intention to settle the dispute outside the court and end the case together. Mediation cannot be forced.
So if Peter is the only one that request it but Karts rejected it, there is nothing that peter can do about it.
C. Peter is discontent with the decision of the arbitrator and decides to appeal to a district court.
This will not affect the result
Peter could appeal to a district court, but his chance of winning in that court wouldn't be higher compared to the previous court unless he is able to gather new evidence that supported his case.
D. Instead of signing a binding arbitration clause in the original work contract, Peter and his contractor commit to a Submission Agreement.
This will not affect the result
Submission Agreement can only be made after the conflict occurs, it cannot be made before the conflict like a binding arbitration clause.
B. The arbitrator displayed bias and exceeded her authority.
This can affect the result
Arbitrator should act as the third neutral party between Peter and Parts for Karts Co. If peter can prove that the arbitrator displayed bias, it will be a direct violation of the Arbitration and Conciliation (Amendment) Act, 2015. This will make Peter able to win the case.
Final answer:
Changes such as biased arbitration, an appeal to district court, and modifications to the original contractual agreement regarding dispute resolution can affect the outcomes of arbitration processes. These factors highlight the importance of impartiality in arbitration and the potential flexibility in arbitration agreements.
Explanation:
Changes in the facts can significantly influence the outcomes in cases involving arbitration agreements. The impact of certain fact changes can vary; however, three scenarios where changes could potentially affect the arbitration agreement are:
The arbitrator displayed bias and exceeded her authority. In legal processes, the impartiality of the arbitrator is crucial for a fair decision. If an arbitrator shows bias, it could lead to the arbitration award being overturned on grounds of arbitrator misconduct.
Peter is discontent with the decision of the arbitrator and decides to appeal to a district court. Although arbitration decisions are generally final and binding, some jurisdictions allow for court review in situations where there has been a gross procedural error, bias, or if the arbitration award violates public policy.
Instead of signing a binding arbitration clause in the original work contract, Peter and his contractor commit to a Submission Agreement. The nature of the agreement between the parties can significantly impact the procedural rights of the parties, including the ability to negotiate different terms regarding dispute resolution processes.
These changes highlight the complexities of arbitration agreements and the potential avenues for challenging or altering the outcome of an arbitration process.
A company is successful at recruiting engineers by handing out flyers during community events near a university which is highly rated for its engineering program. The company's competitor effectively reaches the same audience by hanging banners at a similar event. This is an example of ________.
Answer: substitutability
Explanation: The virtue of something being replaceable is called its substitutability. In simple words, it the ability of something to be put in place of other.
In the given case, the subject company and its competitor both are using the same method for recruitment and both are successful in their process. Thus, any one of them, could easily replace other in the process.
Hence from the above we can conclude that the the given case is an example of Substitutability.
The process of attempting to determine all cost elements such as acquisition price, purchasing administration, follow-up, expediting, inspection and testing, rework, scrap, downtime, lost sales and customer returns is called:
a. total cost of ownership.
b. activity-based costing.
c. target pricing.
d. competitive bidding.
e. learning curve.
Answer: Total cost ownership
Explanation: Total cost ownership is a kind of financial estimate that is used by the buyers and the owners to determine the total indirect and direct cost of a commodity produced or purchased.
It includes all the expenses that are incurred to make the product ready for use to the final customer. It involves a series of activities that is performed by the producer to ready the product.
Hence from the above we can conclude that the correct option is A.
A buyer and seller have entered into a contract for sale of a duplex. the buter defaults on the contract and the seller claims the escrow deposit per contractual agreement. What term applies to this situation?
Answer:
The answer is: Earnest money deposit (EMD)
Explanation:
An EMD or a good faith deposit is done in a real estate operation. Usually when the buyer doesn´t have all the money to buy the property they make a EMD when signing a sales contract. The EMD gives the buyer some time to get a loan, conduct the title search, a property appraisal and all the inspections necessary before closing the deal. The buyer gets his money back in case something goes wrong with the sell that isn´t his responsibility, i.e. the house has severe damage that was unnoticed until a further inspection was made. But when the sell isn´t carried out due to issues with the buyer, i.e. he couldn´t get his loan approved in time, then the buyer gets to keep the EMD. The contingencies must be stipulated in the contract, ether in favor of the buyer or the seller to establish in which cases a party can claim the EMD.
Final answer:
The term that applies to a buyer defaulting on a contract and the seller claiming the escrow deposit is called 'liquidated damages'.
Explanation:
In the situation where a buyer defaults on a contract for the sale of a duplex, and the seller claims the escrow deposit according to the contractual agreement, the term that applies is liquidated damages. Escrow is an arrangement where money is held by a third party on behalf of the transacting parties. If the buyer fails to fulfill their end of the agreement, the escrow deposit may serve as compensation for the seller's losses, as specified in the contract. This scenario is an example of the risks involved in transactions and the measures that parties take to protect their interests, such as including liquidated damages clauses in their contracts.