The pure expectations theory postulates that a long-term bond's interest rate is a function of the expected future short-term interest rates. The theory states that the yield curve of each security is formed based on the market's expectations of future short-term interest rates. As a result, the pure expectations theory predicts that the yield curve will have a positive slope.
The yields and maturities for each of the securities are as follows:
Treasury Bill (1 year) - Yield = 1.5%, Maturity = 1 year
Treasury Note (5 years) - Yield = 2.5%, Maturity = 5 years
Treasury Bond (10 years) - Yield = 3%, Maturity = 10 years
If the investor wants to hold securities with the lowest interest rate risk, then he/she should hold the Treasury Bill because it has the shortest maturity period. The investor should hold the Treasury Bill because it has the shortest maturity period. This means that the investor will be able to reinvest the funds more frequently and earn interest on the reinvested funds at the prevailing market rate.
The Treasury Bond has the highest interest rate risk because it has the longest maturity period. This means that the investor will be exposed to fluctuations in interest rates for an extended period. As a result, the investor should not hold Treasury Bonds as it may cause a potential loss due to fluctuations in interest rates.
To know more about pure expectations theory visit:
https://brainly.com/question/30543289
#SPJ11
After playing for the wild for a few seasons and showing what a good leader he can be, marcus foligno becomes the assistant captain. what type of leader is he?
The correct option is b. Emergent .' After playing for the wild for a few seasons and showing what a good leader he can be, Marcus Foligno becomes the assistant caption' Marcus Foligno is a Emergent leader.
Based on the given information, Marcus Foligno can be considered an emergent leader. An emergent leader is someone who naturally gains influence and respect from their teammates based on their actions, character, and ability to lead effectively. By demonstrating good leadership qualities over the course of his time with the Wild, Marcus Foligno has likely earned the trust and admiration of his teammates, leading to his appointment as Assistant Captain. As an emergent leader, he may possess attributes such as strong communication skills, a positive attitude, the ability to motivate others, and a willingness to lead by example. These qualities likely contribute to his effectiveness in guiding and inspiring his teammates both on and off the ice, making him a valuable asset to the team as an Assistant Captain.
The complete question is
After playing for the Wild for a few seasons and showing what a good leader he can be, Marcus Foligno becomes the Assistant Captain. What type of leader is he? a. Designated b. Emergent c. Implied d. Democratic
To know more about Emergent leader here
https://brainly.com/question/32328569
#SPJ4
The demand for labor in a certain industry is N D =300−w, where N D is the number of workers employers want to hire and w is the real wage measured in dollars per day. The supply of labor in the same industry is N S
=200+w, where N S
is the number of people willing to work. A. According to this model, what is the equilibrium wage and employment in this industry? Show your work. B. According to this model, what is the equilibrium level of unemployment and why? C. According to this model, if the minimum wage is set at $60 per day, how many workers will be unemployed? Please, show your work.
The labor market equilibrium is the point at which the supply of labor equals the demand for labor. This point is determined by the intersection of the supply and demand curves.
The model below gives the demand and supply of labor in a certain industry:ND = 300 - w ... (1)NS = 200 + w ... (2)whereND is the number of workers employers want to hire and w is the real wage measured in dollars per day;NS is the number of people willing to work.
We are to determine the equilibrium bbband employment in this industry.A. Equilibrium wage and employmentThe equilibrium wage is the wage at which the quantity of labor demanded equals the quantity of labor supplied. Equating (1) and (2), we have:ND = NS300 - w = 200 + ww = 50Therefore, the equilibrium wage is $50 per day. To determine employment, substitute the equilibrium wage into the demand equation:ND = 300 - w = 300 - 50 = 250Therefore, the equilibrium employment is 250.
B. Equilibrium level of unemployment and whyUnemployment refers to people willing and able to work but are not employed. At the equilibrium wage, the number of people willing to work is equal to the number of workers employers want to hire. Therefore, there is no unemployment in the labor market.
C. If the minimum wage is set at $60 per day, how many workers will be unemployed?The minimum wage is above the equilibrium wage, which leads to a surplus of labor. Employers want to hire fewer workers than the number of people willing to work, and this results in unemployment.
To determine the number of workers unemployed, substitute the minimum wage into the labor supply equation:NS = 200 + w = 200 + 60 = 260Substituting this value into the demand equation gives the quantity of labor demanded at the minimum wage:ND = 300 - w = 300 - 60 = 240The quantity of labor supplied exceeds the quantity demanded, so there is a surplus of labor of:NS - ND = 260 - 240 = 20Therefore, 20 workers will be unemployed.
To know more about equilibrium visit:
https://brainly.com/question/32951455
#SPJ11
Directions: Look at the following lines and determine how you might revise them so that they remove the pronoun "I".
I can understand what it’s like to have a stack of papers to grade and only two days to do it.
I now know that cigarettes can cause various types of cancer.
I would like you to understand that not all students are lazy.
Doughnuts are really harmful to our health, so I should stop ingesting them.
If I would only give reading a try, I might actually enjoy it.
As a feminist, I believe that women should receive pay that is equal to that of their male coworkers.
In order to revise the given sentences to remove the pronoun "I", there are a few changes that need to be made. The revised sentences without the use of the pronoun "I" are mentioned below:
Understanding what it’s like to have a stack of papers to grade and only two days to do it can be achieved.
The knowledge that cigarettes can cause various types of cancer is now known.
It is important to understand that not all students are lazy.
Ingesting doughnuts is really harmful to our health, so they should be avoided.
Giving reading a try might lead to an actual enjoyment of it.
Believing in equal pay for women, as a feminist, should be a principle embraced.
Learn more about cancer from the given link:
https://brainly.com/question/26059802
#SPJ11
Smith Corp: issued $400,000 of 5 -year, 7% bonds at 104.265 with a market interest rate of 6%. The bonde were sold on their issue date, March 1 , 2019. Interest is payable on March 1 and Septerrber 1 . What is the amount of the effective interest expense on Septernber 1,2019 when the first interest payment is mado? A. $12,000 8,$14,000 C. $48,000 D. $12.512
The required answer to this question is the nearest dollar, the amount of the effective interest expense on September 1, 2019, is $11,950.
To calculate the amount of effective interest expense on September 1, 2019, we need to determine the carrying value of the bonds on that date.
The carrying value of the bonds is the initial issue price adjusted for the amortization of any premium or discount. In this case, the bonds were issued at a premium since they were sold at 104.265% of their face value.
Step 1: Calculate the premium
Premium = Issue price - Face value
Premium = $400,000 * (104.265% - 100%)
Premium = $400,000 * 4.265% = $17,060
Step 2: Calculate the carrying value on September 1, 2019
Carrying value = Issue price - Premium amortization
Carrying value = $400,000 - ($17,060 / 10) (since the bonds have a 5-year term and semi-annual payments)
Carrying value = $400,000 - $1,706 = $398,294
Step 3: Calculate the effective interest expense
Effective interest expense = Carrying value * Market interest rate per period
Effective interest expense = $398,294 * (6% / 2) (since the bonds have semi-annual payments)
Effective interest expense = $398,294 * 3% = $11,949.82
Rounded to the nearest dollar, the amount of the effective interest expense on September 1, 2019, is $11,950. Therefore, the correct answer is not among the options provided.
Learn more about interest here : brainly.com/question/30393144
#SPJ11
Which of the following situations may lead to an asset impairment?
A :A company increases production through a machine that previously had excess capacity.
B :A company decides to repair and use a previously unused piece of equipment.
C :A new technology leads to the availability of a more efficient and cost-effective machine.
D :Fatal flaws in a new technology make new equipment models less desirable.
The most likely situation that may lead to an asset impairment is a new technology leads to the availability of a more efficient and cost-effective machine.
An asset impairment is a loss in the value of an asset. This can happen for a number of reasons, including:
The asset becomes obsolete or technologically outdated.
The asset is damaged or destroyed.
The asset is no longer used or needed by the company.
In the case of option C, a new technology leads to the availability of a more efficient and cost-effective machine. This means that the old machine is no longer as valuable to the company, as it can be replaced with a newer, more efficient machine.
The other options are not as likely to lead to an asset impairment. Option A, a company increases production through a machine that previously had excess capacity, is actually likely to increase the value of the asset. Option B, a company decides to repair and use a previously unused piece of equipment, is also likely to increase the value of the asset. Option D, fatal flaws in a new technology make new equipment models less desirable, is possible, but it is less likely than option C.
To learn more about asset: https://brainly.com/question/32459272
#SPJ11
In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on _____.
Multinational corporations have moved certain production activities overseas to capitalize on various factors, which can include:
Cost advantages: Outsourcing and offshoring can allow companies to take advantage of lower labor costs in foreign countries. This can help reduce production expenses, increase profit margins, and remain competitive in the global market. Access to specialized skills and resources: Some countries may possess specific expertise, technologies, or resources that are valuable for certain production activities. Multinational corporations may opt to offshore production to leverage these specialized skills and resources that may not be as readily available domestically. Expanded markets: Moving production overseas can facilitate market expansion by establishing a local presence in foreign markets. Producing goods or services closer to the target market can lead to greater market responsiveness, reduced transportation costs, and improved customer service.
Learn more about corporations here:
https://brainly.com/question/32217998
#SPJ11
OD is partly a reflection of
a. the result of its current engagement with organizations.
b. its past.
c. an outcome of emergent research.
d. All of these are correct.
According to the question all of these are correct.
Organization Development (OD) is influenced by various factors, making it a reflection of its current engagement with organizations, its past experiences and learnings, and the outcomes of emergent research in the field.OD is shaped by its current engagement with organizations as it involves actively working with clients to diagnose organizational issues, design interventions, and facilitate change processes. The strategies and practices employed by OD practitioners are influenced by the specific context, challenges, and goals of the organizations they work with.
To learn more about facilitate
https://brainly.com/question/33217396
#SPJ11
Sullivan's wife, Susan, died four years ago. Sullivan has not remarried and has found a new person to be his possible wife in 2022 . In 2021 , Sullivan received $82,000 of salary from his employer and $4,000 of business income (his net schedule C income); his total SE tax on line 23 was 865 . He also had the following expenses: 1. Total medical expenses $12,000; insurance reimbursed only $4,000. 2. Federal and State income taxes withheld from his salary were $10,000 and $6,000, respectively. 3. He paid real state taxes of $4,200 and mortgage interest of $6,000. 4. Charitable cash donations totaling $650 to qualified charities. 5 . Gambling expenses of $3,000; had not gambling winning. A. What is Sullivan's AGI for 2021 ? B. What is his total of itemized deductions. C. His taxable income. 4. His total tax liability (line 24). 5. His refund or balance due.
A. Sullivan's AGI for 2021= Salary income + Business Income - Above the line deductions
= 82,000+4,000 = 86,000
B. Sullivan's total itemized deduction = Medical expenses + Taxes + Interest + Charity - Other Miscellaneous Itemized deduction,
Thus, 12,000+10,200+6,000+650-0 = 28,850
C. To calculate the taxable income, we need to deduct Sullivan's itemized deductions from his AGI.
Thus, taxable income = AGI - Total Itemized deduction = 86,000-28,850 = 57,150.
4. His Total tax liability = Tax on taxable income + Self-employment taxes
= 7,905+865 = 8,770.
5. Sullivan's refund or balance due = Total taxes withheld - Total tax liability
= 16,000-8,770 = 7,230.
Since Sullivan had more tax withheld than his actual tax liability,
He is entitled to a refund of 7,230.
To know more about income visit :
https://brainly.com/question/14732695
#SPJ11
As we head into the FALL of 2022, and we hear about new variants, new cases, and now just recently new guidance from the CDC about quaratines etc.. we are coming out of a various orders that have closed businesses and added additional restrictions on businesses in order to open. These restrictions were based on health and safety concerns related to the Coronavirus. My question to you is:
Are these orders legal?
What would you do as a business owner?
We now see case numbers on the rise again, and new diseases reported, what do you think should happen if there is another virus or pathogen outbreak? If you were a business and the business supported your family - what would you do?
As we head into the FALL of 2022, and we hear about new variants, new cases, and now just recently new guidance from the CDC about quarantines, etc., we are coming out of various orders that have closed businesses and added additional restrictions to businesses to open. These restrictions were based on health and safety concerns related to the Coronavirus. Yes, these orders are legal because they were enacted by the relevant legal bodies and constituted reasonable measures of ensuring public safety during the COVID-19 pandemic.
If I were a business owner, I would ensure that my business adheres to the guidelines issued by the relevant authorities. The compliance should not only be for the benefit of the customers, but also to ensure that the business remains operational. As a business owner, I would also educate my employees about the importance of following the guidelines to minimize the spread of any virus or pathogen outbreak. If there were another virus or pathogen outbreak, I would ensure that the guidelines are followed, and the business operations would be adjusted according to the guidelines to reduce the spread of the outbreak. If the business supports my family, I would follow the guidelines and adjust the business operations to remain operational and ensure that my family is protected.
To know more about number visit:
https://brainly.com/question/24908711
#SPJ11
The company is a martial arts school based on Vancouver Island which operates under a partnership model, owned by two people, each with over 25 years of martial arts and business experience. The school operates in partnership with community centers (which provide facilities, marketing, and manage the registration process). The school does not have its own facility (and as a result the only real overhead is website hosting fees). The organization’s revenue (received from clients, and a portion ranging from 60-70% is paid to the school by the community centers) is based entirely on class registration numbers. The classes are usually 20-40 students each and are run out of the community center gym facilities. The organization’s revenue is approximately 150k per year and pays for the two partner’s salaries. Students register for the classes on a term by term basis and are charged approximately $10 per class.
The school has created a strong sense of community as all locations come together at belt testing time and the business model has worked well to minimize the number of teaching hours required to generate revenue as the classes have at least 20 participants per teaching hour and there are 13-15 teaching hours (classes) per week. Efforts to transition class instruction to other black belts has resulted in dropped registration. Much of the strength and success of the school relies on tge strenghth of two partners
During COVID-19 the school transitions to online classes exclusively. Registration dropped to about 50 students throughout the pandemic, and one of the partners decided to exit the business. The one remaining partner is looking to understand their options with how they should successfully move the school forward coming out of the pandemic.
Your Role
Your mission as an advisory team (or individual) is to come up with industry analysis, creative operations plan and evaluate solutions to address this challenge for the partners as they rely on this for their livelihood.
Industry analysisMartial arts schools have become increasingly popular over the years. It is a highly competitive industry that is constantly evolving with new practices, techniques and styles being introduced.
The global martial arts market was valued at around $3.3 billion in 2019, and it is expected to grow at a CAGR of 4.9% from 2020 to 2027. Despite the growth, the COVID-19 pandemic has severely impacted the industry. Many martial arts schools were forced to close their physical locations and shift to virtual classes.
Creative operations planThe remaining partner should consider the following creative operations plan to keep the business going and expand its reach:
1. Develop an online presence: The school should focus on creating an online presence by developing a website, social media profiles, and advertising online. This will help attract new students to the school.
2. Offer flexible payment options: Since the classes are term by term, the school can offer flexible payment options such as monthly payment plans or packages to attract more students.
3. Offer free trial classes: Offering free trial classes can be a good way to attract new students and encourage them to sign up for classes.
4. Develop an app: Developing an app for the school can be a great way to engage students and provide them with an easy way to register for classes, view schedules, and access instructional content.
5. Host virtual events: The school can host virtual events such as tournaments, workshops, and seminars to keep students engaged and build a sense of community.
6. Partner with other schools: Partnering with other martial arts schools can be a great way to expand the school's reach and offer students a wider range of classes.Evaluate solutionsThe following are the solutions that the remaining partner can evaluate to address the challenge of moving the school forward.
To know more about increasingly visit:
https://brainly.com/question/28461253
#SPJ11
Mr. Madoff purchased an antique sold on eBay for 70% of Ebay asking price , he then sold it for 20% above it's true market value to make a profit of $800.
Ebay's price was 80% of the market value. find Ebay's original asking price?
Mr. Madoff purchased an antique sold on eBay for 70% of Embay asking price, and he sold it for 20% above its actual market value to make a profit of $800. eBay's price was 80% of the market value.
Step 1: Let us assume that the market value of the antique is $100.
Step 2: Mr. Madoff purchased the antique at a cost of 70% of the initial asking price of Embay, or $0.70x.
Step 3: Mr. Madoff sold the antique for 20% above its actual market value of $100, or $1.20(100) = $120.
Hence, he made a profit of $120 - $100 = $20. We know that this profit equals $800, so we can set up an equation to solve for x: $20 = 0.2x $800 = 40x x = 50
Step 4: If Mr. Madoff bought the antique for $0.70x, he paid $0.70(50) = $35.
Hence, the antique's market value on eBay was $35 / 0.80 = $43.75. Thus, Ebay's original asking price was $43.75. To sum up, Mr. Madoff purchased an antique sold on eBay for 70% of Ebay asking price. He then sold it for 20% above its true market value to make a profit of $800. eBay's price was 80% of the market value.
To Know more about profit equals
https://brainly.com/question/30237887
#SPJ11
In addition to political considerations all of the following reasons for trade restriction except
a. equalizing a nation's balance of payments
b. protecting new and weak industries
c. protecting the health of citizens
d. protecting national security
e. all of the above
Trade restrictions are the laws and policies of the government or any other authorized organization that restrict or limit the import and export of goods and services between countries.
Political considerations play a significant role in the implementation of trade restrictions. Apart from political considerations, there are various other reasons for trade restrictions. They are as follows:Equalizing a nation's balance of payments: The balance of payments is the accounting of the transactions of a country with other countries.
Countries apply trade restrictions to keep their balance of payments favorable. They want to import less and export more to reduce their trade deficit.
To balance their payments, countries impose tariffs, quotas, and other trade barriers.Protecting new and weak industries: New industries are fragile, and they need protection. They are competing with established players in the international market, which is difficult for them.
They do not have enough capital, skilled labor, and technological advancements to compete with big players. To support new and weak industries, the government provides subsidies, imposes tariffs, quotas, and other trade barriers to protect their industries.Protecting the health of citizens: Trade restrictions are also imposed to protect citizens' health. It involves import restrictions on food, beverages, and other harmful items to protect citizens' health.
For example, countries impose restrictions on the import of tobacco and other harmful drugs to keep their citizens safe.Protecting national security: Countries may apply trade restrictions to protect their national security. For instance, they may ban the export of military goods, nuclear materials, or other items that can be used to make weapons. In conclusion, trade restrictions are applied to provide equal opportunities for local and foreign industries, protect citizens' health, balance payment, and protect national security.
Therefore, the correct answer to the question is option E - all of the above.
To know more about government visit:
https://brainly.com/question/4160287
#SPJ11
Mellon Inc. issued corporate bonds with a tenure of 10 years and a coupon rate of 6%. The maturity value of each bond is $1,000 and the interest payments are made on an annual basis. Required: a. Compute the price of each bond when the market rate and coupon rate are equal. (5 Marks) b. Compute the price of each bond when the market rate is 4%. (5 Marks) c. Compute the price of each bond when the market rate is 8%. (5 Marks) d. Explain the term structure of bonds using the answers to the above questions. (10 Marks)
a. Compute the price of each bond when the market rate and coupon rate are equal When the coupon rate is equal to the market rate,
the price of the bond is equal to its face value,
$1,000. This is because the yield to maturity (YTM) equals the coupon rate,
meaning that the bond is fairly priced .b.
Compute the price of each bond when the market rate is 4%.When the market rate falls to 4%, the bond's price would increase. The formula to calculate the bond price is:P = PMT × (1 - 1/(1 + i)n)/i + FV/(1 + i)nWhere:P = price of the bondFV = face value of the bondPMT = annual interest paymenti = market interest rate per periodn = number of periodsUsing the information given:
PMt = $1,000 × 6% = $60i = 4% / 1 = 0.04n = 10Therefore,P = $60 × (1 - 1/(1 + 0.04)10)/0.04 + $1,000/(1 + 0.04)10= $1,143.07c. Compute the price of each bond when the market rate is 8%.When the market rate increases to 8%, the bond's price would decrease.
Using the same formula as in part b:PMt = $1,000 × 6% = $60i = 8% / 1 = 0.08n = 10Therefore,P = $60 × (1 - 1/(1 + 0.08)10)/0.08 + $1,000/(1 + 0.08)10= $869.06d. Explain the term structure of bonds using the answers to the above questions.The term structure of bonds refers to the relationship between the yield to maturity and the time to maturity for bonds with similar credit ratings.
As the market rate fluctuates, it affects the bond's yield to maturity, and thus its price. When the market rate is equal to the coupon rate, the bond is priced at face value. When the market rate is lower than the coupon rate, the bond is priced at a premium, and when the market rate is higher than the coupon rate, the bond is priced at a discount. The bond price and yield to maturity are inversely related, meaning that when the bond price increases, the yield to maturity decreases, and vice versa.
To know more about Compute visit:
https://brainly.com/question/15707178
#SPJ11
please show all work (not in excel)
Question 24 Consider a growing annuity that starts with a payment of $67,000 at the end of year 1 with a constant growth rate of 3%. The growing annuity lasts for a total of 45 years and has an appropriate discount rate of 8%.
What is the present value of this growing annuity?
The formula for the present value of a growing annuity is:PVGA = PMT1 / (r - g) × [1 - (1 + g / (1 + r))t-n]Where,PMT1 is the first payment of the growing annuity, g is the growth rate of the annuity, r is the discount rate of the annuity, t is the time period, and n is the number of periods.
PMT1 = $67,000g
= 3%
r = 8%
t = 1
n = 45We can calculate the present value of this growing annuity as follows:
PVGA = 67,000 / (8% - 3%) × [1 - (1 + 3% / (1 + 8%))45]
PVGA = 67,000 / 5% × [1 - (1 + 3%)45 / (1 + 8%)45]PVGA = $1,340,000 × [1 - 0.1236]
PVGA = 1,169,656.88
Therefore, the present value of this growing annuity is 1,169,656.88.
To know more about value visit:
https://brainly.com/question/30145972
#SPJ11
Prepare the December 31 entry for Sheffield Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,440. (Credit account titles are qutomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) On July 1, 2020, Sheffield Corporation purchased Young Company by paying $256,500 cash and issuing a $120,000 note payable to Steve Young. At July 1 , 2020, the balance sheet of Young Company was as follows.
The Sheffield Corporation on December 31, the following item needs to be made to reflect intangible amortisation:Date: 2020 December 31.
Amount of the Trademark Amortisation Cost Amount of Accumulated Amortisation for a TrademarkNote: Depending on the pertinent data included in the inquiry, the precise amounts for "Trademark Amortisation Expense" and "Accumulated Amortisation - Trademark" will vary. The entry, however, would show the expense for amortising the trademark and the resulting rise in the accumulated amortisation account.Please be aware that it is not possible to include the precise dollar numbers in the entry without the specified quantities. When entering the entry, be sure to substitute the correct quantities.
learn more about amortisation here :
https://brainly.com/question/30999326
#SPJ11
What is the present value of a Annuity where the investor receives $10,000 every year for 10 years and the rate of interest offered is 4.5%
The present value of the annuity is $110,185.06. An annuity is a series of equal cash flows that occur at equal intervals, such as the beginning or end of each year.
The present value of an annuity refers to the sum of the discounted cash flows over the duration of the investment. The formula for calculating the present value of an annuity is given as:
PV = A * [1 - (1 + r)^-n] / r
Where; PV = Present value of an annuity
A = The amount of each annuity payment
r = The interest rate per period
n = The total number of periods
In the question provided, the investor receives $10,000 every year for ten years. Thus, the amount of each annuity payment (A) is $10,000, and the number of annuity payments (n) is 10. The interest rate per period (r) is 4.5%.
Now, we can calculate the present value of the annuity using the formula above:
PVA = $10,000 * [1 - (1 + 0.045)^-10] / 0.045
PVA = $10,000 * [1 - 0.5983] / 0.045
PVA = $10,000 * 11.0185
PVA = $110,185.06
To know more about the cash flows, visit:
https://brainly.com/question/28503523
#SPJ11
BTL Company manufactures speaker systems. The company estimated there will be 49,500 units in inventory at the beginning of December 2019. BTL Company wants to have half of that amount in its inventory at the end of December. Based on the forecasted sales, 138, 100 speaker systems will be sold in the month of December Do not enter dollar signs or commas in the input boxes Use the negative sign for negative values or values that must be subtracted, a) Determine the number of speakers to be produced in December n Budgeted Production Units - b) Prepare a production budget. BTL Company Production Budget Month Ending December 31, 2019 Budgeted Sales Budgeted Ending Inventory Budgeted Beginning Inventory Budgeted Production Units
113,350 speaker systems would be the budgeted production units for BTL Company in December 2019. We must compute the budgeted production units by taking into account the projected sales as well as the intended ending and beginning inventory levels in order to establish the number of speakers to be manufactured in December.
given information: - 49,500 units are predicted to be in the initial inventory. Desired ending inventory: 24,750 units, which is equal to 50% of the anticipated beginning inventory (49,500/2) Units sold within budget: 138,100 We can use the following calculation to determine the budgeted production units: Budgeted Production Units are calculated as follows: Budgeted Sales + Desired Ending Inventory - Beginning Inventory Putting the values in the formula as substitutes: 138,100 + 24,750 - 49,500 are the budgeted production units. 113,350 are the budgeted production units The BTL Company's production budget for the month of December 2019 would consist of the the following details: Sales as planned: 138,100 units Ending Inventory Budgeted: 24,750 units Starting inventory budgeted at 49,500 units Units of Production Budgeted: 113,350
learn more about account here:
https://brainly.com/question/30977839
#SPJ11
which of the following pays for the services provided by public employment agencies?
The correct answer is taxpayers. Taxpayers refer to individuals, entities, or organizations that are required by law to pay taxes to the government.
Public employment agencies, also known as job centers or labor exchanges, are government entities that provide various services to job seekers and employers. These agencies offer services such as job placement assistance, career counseling, job training programs, and unemployment benefits administration.
The funding for public employment agencies primarily comes from public funds, which are generated through taxes collected from individuals and businesses. Taxpayers contribute to the funding of these agencies through various taxes, such as income taxes, payroll taxes, or specific taxes allocated for employment and labor-related services.
The rationale behind taxpayers funding public employment agencies is to ensure that essential employment services are available to the public, promoting labor market efficiency, reducing unemployment rates, and supporting economic growth. These agencies play a crucial role in matching job seekers with suitable employment opportunities and providing resources for skills development and workforce integration.
To learn more about taxpayers click here
https://brainly.com/question/28446902
#SPJ11
the auditor’s report on a corporation’s financial statements is addressed to the president of the company.
The auditor's report on a corporation's financial statements is addressed to the president of the company. The auditor's report is a formal document created by an external auditor that assesses and verifies the accuracy and completeness of a corporation's financial statements.
This report contains an opinion about whether the financial statements are free from material misstatements and present a true and fair view of the corporation's financial position and performance. The report is addressed to the president of the company, which is the individual responsible for the corporation's financial statements. The auditor's report is typically included in the corporation's annual report and is intended to provide assurance to shareholders and other stakeholders that the financial statements are reliable and trustworthy.
The report also serves as a key component of the corporation's overall system of internal controls and helps to ensure that the corporation's financial reporting processes are transparent and effective. The auditor's report is a critical tool for ensuring the integrity of the financial reporting process and maintaining the confidence of stakeholders in the corporation's financial statements.
To know more about effective visit:
brainly.com/question/27328727
#SPJ11
Determining Cash Receipts—Direct Method
Marshall Inc. had beginning balances (January 1) of $200,000 and $5,000 for accounts receivable and the allowance for doubtful accounts, respectively. During the year, the company had the following transactions.
Sales $900,000
Write-off of accounts 1,000
Cash collections on account receivable 850,000
Bad debt expense recorded 2,8001. Determine the cash receipts from customers reported in the operating activities section in the statement of cash flows assuming the direct method.
Answer
2. Reconcile sales to cash receipts from customers.
Sales Answer
Change in accounts receivable balance Answer
Account write-offs Answer
Collection of accounts receivable previously written off Answer
Cash collections Answer
Sales: $900,000
Change in accounts receivable balance: Not provided
Account write-offs: $1,000
Collection of accounts receivable previously written off: Not provided
Cash collections: $850,000
To determine the cash receipts from customers reported in the operating activities section in the statement of cash flows using the direct method, we need to reconcile the sales figure with the cash collections. Let's go through the steps:
1. Sales: The given information states that sales for the year were $900,000.
2. Change in accounts receivable balance: To determine the change in accounts receivable, we need to calculate the difference between the beginning and ending balances. The beginning balance was $200,000, and we are not given the ending balance. Therefore, we cannot determine the change in accounts receivable.
3. Account write-offs: The company wrote off $1,000 of accounts during the year.
4. Collection of accounts receivable previously written off: The information provided doesn't mention any collections on previously written-off accounts.
5. Cash collections: The given information states that the company collected $850,000 on accounts receivable.
To summarize:
Sales: $900,000
Change in accounts receivable balance: Not provided
Account write-offs: $1,000
Collection of accounts receivable previously written off: Not provided
Cash collections: $850,000
Unfortunately, without the ending balance of accounts receivable or information on the collection of previously written-off accounts, we cannot determine the exact cash receipts from customers using the direct method.
Know more about accounts receivable balance here:
https://brainly.com/question/33725048
#SPJ11
The current version of IAS 12 has major changes from the one first issued in 1979. The original Standard basically allowed deferred tax to be calculated based on any method available – deferral or liability method, full or partial provision – and was based on an income statement approach. The current IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Critically discuss the following statement: "Comparability requires that either all entities provide in full for deferred tax or that is always ignored."?
International Accounting Standards (IAS) 12 is a standard that provides guidance on the accounting treatment of income taxes, including deferred taxes, for entities. The current version of IAS 12 has undergone significant changes since it was first introduced in 1979.The original version of IAS 12 permitted deferred tax to be computed using any available method, whether deferral or liability method, full or partial provision, and was based on an income statement approach. However, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions.
Comparability is one of the qualitative characteristics of financial information, according to the International Financial Reporting Standards (IFRS). It is essential that the financial statements of entities are comparable to those of other entities to ensure that investors can make informed decisions. Therefore, there is a need to ensure that deferred tax is accounted for consistently across entities.
As a result, the statement "Comparability requires that either all entities provide in full for deferred tax or that is always ignored" is correct. This means that either all entities should provide in full for deferred tax or none should account for it. Failure to comply with this rule could result in inconsistencies across financial statements, making it difficult for investors to make informed decisions.
In conclusion, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Comparability requires that either all entities provide in full for deferred tax or that is always ignored.
To know more about guidance visit :
https://brainly.com/question/839980
#SPJ11
Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. Also, during the first year, the cookie business incurred costs that required outlays of money amounting to $9,000.
Zach's accounting profit for the year was
_________________________________________________________________________________
a. $-494,000.
b. $-6,000.
c. $6,000.
d. $12,000.
c. $6,000.
Zach took $400,000 out of the bank to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. He also incurred costs amounting to $9,000.
To calculate the interest earned on Zach's bank account during the first year, we can use the formula: Interest = Principal x Rate x Time.
The principal, in this case, is $400,000, the rate is 3 percent (or 0.03), and the time is 1 year. Plugging these values into the formula, we get: Interest = $400,000 x 0.03 x 1 = $12,000.
So, the interest earned on Zach's bank account during the first year is $12,000.
Now let's calculate the revenue generated from selling the boxes of cookies. Zach sold 6,000 boxes at $2.50 per box. To find the total revenue, we multiply the number of boxes sold by the price per box: Revenue = 6,000 x $2.50 = $15,000.
Finally, we can calculate Zach's net income by subtracting the costs from the revenue: Net Income = Revenue - Costs = $15,000 - $9,000 = $6,000.
Therefore, Zach's net income during the first year of his cookie business is $6,000.
In summary:
- The interest earned on Zach's bank account is $12,000.
- The revenue generated from selling the boxes of cookies is $15,000.
- The net income (revenue minus costs) is $6,000.
Know more about 3 percent interest here:
https://brainly.com/question/28149553
#SPJ11
25. Amalgamated Products has the following operating divisions
and respective percentages of the company’s total assets:
Asset Percentage
Division (% of company’s total assets)
Chemicals 20
Polymers 30
Food Additives 50
To estimate the cost of capital for each operating division,
management has identified the following three competitors:
Estimated
Competitor Equity Beta Debt/(Debt + Equity)
Consolidated Chemicals 1.2 0.4
Mongo Macromolecules 1.6 0.2
Flavors & Fragrances 0.8 0.3
a) Assuming that the debt of all of these companies is risk-
free, estimate the asset beta for each of Amalgamated Products’
divisions. Assume that Amalgamated Products’ debt to (debt plus equity)
ratio equals 0.4. What is Amalgamated Products’ equity beta?
b) Assume that the risk-free interest rate is 3% per year and
the expected return on the Wilshire 5000 Index is 8% per year.
Estimate the cost of capital for each of Amalgamated Products’
divisions, and for Amalgamated Products as a whole.
In answering part b, is it preferable to use the asset beta
or the equity beta? Why?
c) Repeat the previous calculations assuming that every company’s
debt has a beta of 0.2. How much does each division’s and
Amalgamated Products’ cost of capital change relative to
assuming that their debt is risk-free?
a) Calculations to estimate the asset beta for each of Amalgamated Products’ divisions and Amalgamated Products’ equity beta is given below;
Asset Beta=Equity Beta [1+(1-Tax Rate) (Debt/Equity Ratio)]
Where T is the tax rate, T=40%
Chemicals:
Asset Beta=1.2 [1+(1-0.4) (0.4)] = 1.344
Polymers:
Asset Beta=1.6 [1+(1-0.4) (0.2)]
= 1.12
Food Additives:
Asset Beta=0.8 [1+(1-0.4) (0.3)]
= 1.144
Amalgamated Products’ Equity Beta:
Asset Weighted Beta = (20/100)*1.344 + (30/100)*1.12 + (50/100)*1.144 = 1.1668
b) In part b, it is preferable to use the asset beta as opposed to the equity beta. This is because the question has asked for the cost of capital for each of Amalgamated Products’ divisions and Amalgamated Products as a whole, hence the asset beta, which is reflective of the risk of the operating assets of the company, is more appropriate to use for each division.
c) With every company's debt having a beta of 0.2, the cost of capital calculations for Amalgamated Products' divisions and Amalgamated Products as a whole changes as follows:
Chemicals:
Asset Beta=1.2 [1+(1-0.4) (0.4*0.2)]
= 1.272
Polymers:
Asset Beta=1.6 [1+(1-0.4) (0.2*0.2)]
= 1.184
Food Additives:
Asset Beta=0.8 [1+(1-0.4) (0.3*0.2)] = 0.896
Amalgamated Products’ Equity Beta:
Asset Weighted Beta = (20/100)*1.272 + (30/100)*1.184 + (50/100)*0.896 = 1.0556
Note that as a result of the lower debt beta, the asset betas for each division and the asset-weighted beta for Amalgamated Products as a whole decreases.
To know more about Calculations visit :
https://brainly.com/question/30781060
#SPJ11
a two-year bond with annual coupons of 100 and redemption value of 1000 is priced at 1,037.41. the current two-year spot rate is 8%. determine the current one-year spot rate that is consistent with the pricing of the bond.
The current one-year spot rate that is consistent with the pricing of the bond is approximately 0.64% (or 0.0064 as a decimal).
To determine the current one-year spot rate consistent with the pricing of the bond, we can use the concept of the yield to maturity (YTM) and the relationship between spot rates and yields.
Given:
Face value (redemption value) of the bond = $1000
Annual coupon payment = $100
Bond price = $1037.41
Current two-year spot rate = 8%
The yield to maturity (YTM) is the rate of return an investor would receive if they hold the bond until maturity. In this case, the bond has a two-year maturity.
To calculate the YTM, we can use the bond pricing formula:
Bond Price = (C / (1 + r₁)) + (C / (1 + r₂)²) + (F / (1 + r₂)²)
Where:
C = Annual coupon payment
F = Face value (redemption value)
r₁ = One-year spot rate
r₂ = Two-year spot rate
Substituting the given values:
$1037.41 = ($100 / (1 + r₁)) + ($100 / (1 + 0.08)²) + ($1000 / (1 + 0.08)²)
Now, we can solve this equation for r₁, the current one-year spot rate.
$1037.41 = ($100 / (1 + r₁)) + ($100 / (1 + 0.08)²) + ($1000 / (1 + 0.08)²)
Multiplying through by (1 + r₁) and rearranging the terms:
$1037.41(1 + r₁) = $100 + ($100 / (1 + 0.08)²) + ($1000 / (1 + 0.08)²)
Expanding and simplifying:
$1037.41 + $1037.41r₁ = $100 + ($100 / (1.08)²) + ($1000 / (1.08)²)
Subtracting $1037.41 from both sides:
$1037.41r₁ = $100 + ($100 / (1.08)²) + ($1000 / (1.08)²) - $1037.41
Now, we can solve for r₁:
r₁ = ($100 + ($100 / (1.08)²) + ($1000 / (1.08)²) - $1037.41) / $1037.41
Calculating the numerator:
Numerator = $100 + ($100 / (1.08)²) + ($1000 / (1.08)²) - $1037.41
≈ $100 + ($100 / 1.1664) + ($1000 / 1.1664) - $1037.41
≈ $100 + $85.68 + $858.37 - $1037.41
≈ $6.64
Now, calculating r₁:
r₁ ≈ $6.64 / $1037.41
≈ 0.0064
Therefore, the current one-year spot rate that is consistent with the pricing of the bond is approximately 0.64% (or 0.0064 as a decimal).
To know more about bond:
https://brainly.com/question/31756424
#SPJ4
By 1812 the widespread cotton was now a major production in the United States. The people began to make use of the process called textile and farming moved to a powerful force of over a billion pounds a year and slave labor increased dramatically over time.
b.
The nineteenth-century unfolded, and more and more farm families began engaging in commercial rather than subsistence agriculture, producing surplus crops and livestock to sell to distant markets. Americans were forced to look to themselves for the finished goods and manufactured items they needed such as cotton mills.
c.
The first textile mills and shoe factories and mines began to be developed in the United States. Americans, men, and women worked according to a whistle or a foreman or a manager who told them when to get up when to go to work, when to finish and how much time they might have for lunch rather than getting up and going to work on the farms at their own schedules
In 19th century in the United States witnessed the rise of cotton production, the growth of commercial agriculture, and the development of industrial establishments.
In the 19th century, the United States experienced significant changes in its economy and workforce. The widespread cultivation of cotton became a major production, driven by advancements in textile manufacturing.
This led to a significant increase in farming productivity, with over a billion pounds of cotton being produced annually. However, this growth was heavily reliant on slave labor, which saw a dramatic increase during this time.
As the century progressed, more farm families shifted from subsistence agriculture to commercial farming. They began producing surplus crops and livestock to sell in distant markets.
This transition towards commercial agriculture meant that Americans had to rely on themselves for finished goods and manufactured items, such as textiles. Consequently, the United States saw the development of textile mills, shoe factories, and mines.
With the rise of these industrial establishments, a new work culture emerged. Workers, both men, and women, were employed in factories and mines, working under the supervision of foremen or managers.
They followed strict schedules dictated by whistles and were told when to start, finish, and even how much time they could take for lunch. This marked a shift from the more flexible schedules of agricultural work on farms.
Overall, the 19th century in the United States witnessed the rise of cotton production, the growth of commercial agriculture, and the development of industrial establishments, which brought about significant changes in the economy and work practices of Americans.
Learn more about United States farming from the given link!
https://brainly.com/question/12998379
#SPJ11
onlineshop incorporated, ubiquitous incorporated, and travelmore corporation rely on various intangible assets to operate their businesses. these companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. type of intangible asset onlineshop, incorporated ubiquitous, incorporated travelmore corporation developed technology 3.9 4.1 2.0 trade names 4.4 8.6 10.0 customer relationships 3.6 4.0 6.0 required: based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets.
Based on the average estimated useful lives reported in their annual reports, Travelmore Corporation uses the longest periods for amortizing most of its classes of intangible assets.
To identify the company that uses the longest periods for amortizing most of its classes of intangible assets, we need to compare the average estimated useful lives for each type of intangible asset.For developed technology, the average estimated useful lives are as follows: Onlineshop Incorporated: 3.9 years Ubiquitous Incorporated: 4.1 yearsTravelmore Corporation: 2.0 yearsFrom these estimates, we can see that Travelmore Corporation has the longest average estimated useful lives for both trade names (10.0 years) and customer relationships (6.0 years). While Onlineshop Incorporated and Ubiquitous Incorporated have longer estimated useful lives for developed technology (3.9 and 4.1 years, respectively), Travelmore Corporation's longer periods for trade names and customer relationships make it the company that uses the longest periods for amortizing most of its classes of intangible assets.
When comparing the average estimated useful lives for each type of intangible asset, we find that Travelmore Corporation uses the longest periods for amortizing most of its classes of intangible assets. The company's annual report indicates that they amortize their trade names over an average estimated useful life of 10.0 years and their customer relationships over an average estimated useful life of 6.0 years.In contrast, Onlineshop Incorporated has shorter estimated useful lives for both trade names (4.4 years) and customer relationships (3.6 years). Similarly, Ubiquitous Incorporated has shorter estimated useful lives for trade names (8.6 years) and customer relationships (4.0 years).
To know more about Travelmore Corporation visit:
https://brainly.com/question/8902191
#SPJ11
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-drled to last longer). Pappy's pald $185.000 for a marketing survey to determine the viability of the product It is felt that Potato Pet will generate sales of $900,000 per year. The fixed costs associated with this will be $230.000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet will cost $980,000 and will be depreciated in a straight-line manner for the four years of the product Iffe (as with alf fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy's has a tax rate of 23 percent and a required return of 13 percent.
a. Caiculate the payback period for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16. b. Calculate the NPV for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16. c. Calculate the IRR for this project. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
Payback period: Payback period is a measure of the time it takes an investment to recover its cost. It is the length of time required to recover the cost of an investment.
Payback period can be calculated as follows: Payback period = Investment required / Annual net cash inflow where Annual net cash inflow = Cash inflow - Cash outflow Thus, the calculation of payback period is as follows:
[tex]Payback period = $1,165,000 / $900,000[/tex]
Payback period = 1.29 years b. NPV calculation: Net Present Value (NPV) measures the present value of future cash flows compared to the initial investment. A positive NPV implies that the investment generates more cash than the return required by the investor.
The formula to calculate the NPV is: NPV = Present value of cash inflows - Initial investment where, Present value of cash inflows = Cash inflow / (1 + Discount rate)^n
[tex]Annual cash inflow for the Potato Pet = 900,000 - (0.18 x 900,000) = $738,000[/tex]
Present value of cash inflows = 738,000 / (1 + 0.13)^2 = $576,634.91
[tex]For n = 3,Present value of cash inflows = 738,000 / (1 + 0.13)^3 = $508,525.[/tex]
[tex]59For n = 4,Present value of cash inflows = 738,000 / (1 + 0.13)^4 = $446,
945.64NPV = $651,769.91 + $576,634.91 + $508,525.59 + $446,945.64 - $1,[/tex]
[tex]165,000NPV = $18,875.05c. IRR[/tex]
IRR is a measure of the profitability of an investment. It is the discount rate at which the NPV of the project becomes zero. A higher IRR implies that the investment is more profitable.
To know more about measure visit:
https://brainly.com/question/28913275
#SPJ11
For Q1-Q5, please choose "True" or "False" of the following statements:
1. Financial accounting aims reporting to those outside the organizations.
2. Managerial accounting serves three main objectives: planning, controlling, compliance.
3. Intrinsic motivation includes performance goals and bonus compensation.
4. Contribution margin = sales - variable expenses.
5. Break-even point is the level of sales at which loss is zero.
1. True:Financial accounting is focused on reporting the financial information of a company to those outside the organization. It deals with the preparation of financial statements, income statements, balance sheets, cash flow statements, etc.
These reports are provided to individuals and organizations outside the company, such as investors, creditors, financial analysts, and government agencies. The purpose of financial accounting is to provide information to these individuals so that they can make informed decisions about investing or lending money to the company.2. False:Managerial accounting serves three primary purposes: planning, control, and decision-making. The main purpose of managerial accounting is to provide financial information that is useful in making decisions that will help achieve the company's goals.
3. False:Intrinsic motivation is motivation that comes from within an individual rather than from external factors such as rewards, bonuses, or other incentives. True:Contribution margin is the amount by which sales revenue exceeds variable costs. It is calculated by subtracting variable costs from sales revenue. The contribution margin is the amount that is available to cover fixed costs and generate a profit.5. True:The break-even point is the level of sales at which a company neither makes a profit nor incurs a loss. Therefore, the statement is true.
To know more about revenue visit:
https://brainly.com/question/29567732
#SPJ11
which supreme court case ruled that the law forbids only state discrimination against blacks and that the law cannot interfere with discriminatory acts of businesses and individuals?
The Plessy v. Ferguson decision was widely criticized for upholding racial segregation and perpetuating discrimination. The decision was eventually overturned by the Supreme Court in the Brown v. Board of Education case, which declared racial segregation in public schools unconstitutional.
The Supreme Court case that ruled that the law forbids only state discrimination against Blacks and that the law cannot interfere with discriminatory acts of businesses and individuals is Plessy v. Ferguson.
In Plessy v. Ferguson, the Supreme Court upheld the constitutionality of racial segregation laws in public facilities, establishing the "separate but equal" doctrine. This doctrine allowed states to legally segregate public facilities based on race as long as the separate facilities were deemed equal in quality.
Here's a step-by-step explanation:
1. Plessy v. Ferguson was a landmark Supreme Court case decided in 1896.
2. The case centered around Homer Plessy, who was arrested for refusing to leave a Whites-only railroad car in Louisiana.
3. Plessy argued that his arrest violated the Equal Protection Clause of the Fourteenth Amendment.
4. The Supreme Court, in a 7-1 decision, upheld the constitutionality of racial segregation under the "separate but equal" doctrine.
5. The Court ruled that the law forbids only state discrimination against Blacks and that the law cannot interfere with discriminatory acts of businesses and individuals.
6. This ruling allowed states to continue implementing segregation laws in public facilities, such as schools, transportation, and public accommodations.
7. The "separate but equal" doctrine remained in place until it was overturned by the Supreme Court's decision in Brown v. Board of Education in 1954.
It is important to note that the Plessy v. Ferguson decision was widely criticized for upholding racial segregation and perpetuating discrimination. The decision was eventually overturned by the Supreme Court in the Brown v. Board of Education case, which declared racial segregation in public schools unconstitutional.
To Know more about discrimination against blacks here:
brainly.com/question/33806215
#SPJ11
Hector is one of four partners in Cross & Co., a firm of solicitors. Hector orders four new safes from Lock Ltd for the storage of confidential documents, one for the office of each partner in the firm. His three partners all think this an extravagance on Hector’s part and an unnecessary expense because each office already has lockable filing cabinets in situ. They seek to cancel the order but Lock Ltd refuses and demands payment. Which of the following best describes the legal position of Cross & Co. here?
Cross & Co. are bound by the contract because Hector has explicit authority to make such a contract as a partner of the firm.
Cross & Co. are bound by the contract which was made within the implied usual authority of Hector as a partner of the firm.
Cross & Co. are not bound by the contract which was made ultra vires to his powers as a partner of the firm.
Cross & Co. are not bound by the contract because the majority of the partners in the firm have not agreed to it.
The legal position of Cross & Co. is accurately described as being bound by the contract made within the implied usual authority of Hector as a partner of the firm.
The legal position of Cross & Co. can be described as follows:
Cross & Co. are bound by the contract which was made within the implied usual authority of Hector as a partner of the firm.
In this scenario, Hector, a partner of Cross & Co. (a firm of solicitors), orders four new safes from Lock Ltd for the storage of confidential documents. He intends to have one safe for each partner's office in the firm. However, his three partners disagree with this decision, considering it extravagant and unnecessary since lockable filing cabinets are already present in each office. Consequently, they attempt to cancel the order, but Lock Ltd refuses and insists on payment.
According to the legal principles surrounding partnerships, Cross & Co. is bound by the contract with Lock Ltd. This is because Hector, as a partner of the firm, possesses explicit authority to enter into such contracts. In the context of implied usual authority, any actions or decisions undertaken by a partner within the normal course of business are deemed to be carried out within their usual authority. As a result, Cross & Co. is held responsible for the contract entered into by Hector as it falls within his implied usual authority.
Therefore, the legal position of Cross & Co. is accurately described as being bound by the contract made within the implied usual authority of Hector as a partner of the firm.
Learn more about authority
https://brainly.com/question/31018838
#SPJ11