Answer: B. The ROI percentages
Explanation: Making comparison between investments in terms of returns will involve calculating the ROI as a percentage. The ROI refers to the return on an investment which is the ratio of the net profit made from an investment and the cost of the investment. That is ;
ROI = (Net profit / cost of investment) × 100
Investment with greater or higher return on investment (ROI) is usually regarded as the best investment between alternatives. For instance two investments, A and B with ROI of 5% and 10% respectively. Investment B has a higher ROI than A and thus considered has the better investment decision.
Answer:
BBBBBBBBBBBBB
ROI percentages
Explanation:
did the test
A study examined the economic rewards of obtaining an MBA degree. The researchers made inferences based on wage data collected for a sample of individuals who sat for a particular examination required for most MBA programs. The researchers used data from an earlier article which used random sampling of those who took the exam during a selected time period to draw conclusions about the potential economic benefits of obtaining a an MBA degree. Complete parts Bold a through Bold c below. nothing nothing nothing nothing a. For this study, describe the population of interest. A. All people who have an MBA. B. All those who took the exam during the selected time period.
Answer:
Option B. All those who took the exam during the selected time period.
Explanation:
The reason is that the population of interest is based on the people who took the exam during the selected period because it helps in estimating the actual economic benefits to the people who opted the MBA prgram. So basically we are using the earliar research papers which will help in understanding what value the MBA degree has generated. So the option B is correct.
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP? Group of answer choices
Answer:
Government spending would have to change by $1.6 billion
Explanation:
The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.
Since from the question, we have:
MPC = Marginal propensity to consume = 0.75
The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:
Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0
Therefore, we have:
Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion
Therefore, government spending would have to change by $1.6 billion to generate $400 million increase in real GDP.
You invest $100 in stocks and sell them one year later for $115. Use the instructions in Lesson 3 to calculate the ROI dollar amount and percentage. (2.0 points) TIP: Subtract the initial investment from the total return to get the ROI dollar amount. Then divide the ROI dollar amount by the initial investment, and multiply that number by 100 to get the percentage.
Answer:
ROI in dollar amount = $15
ROI in percentage = 15%
Explanation:
Given:
Initial investment = $100
Sale value = $115
Find:
ROI in dollar amount
ROI in percentage
Computation:
⇒ ROI in dollar amount = Sale value - Initial investment
ROI in dollar amount = $115 - $100
ROI in dollar amount = $15
⇒ ROI in percentage = [ROI in dollar amount / Initial investment]100
ROI in percentage = [$15 / $100]100
ROI in percentage = 15%
Answer:
15%
Explanation:
A registered representative was guilty of an undetected minor rule violation during the last year of employment at a broker-dealer firm. The representative has now decided to leave the industry. For how long might the representative still be subject to fines or other sanctions by Financial Industry Regulatory Authority (FINRA) if the violation is belatedly detected?
Answer: 2 years
Explanation:
From the question, we are informed that a registered representative was guilty of an undetected minor rule violation during the last year of employment at a broker-dealer firm and that the representative has now decided to leave the industry.
The representative will still be subject to fines or other sanctions by Financial Industry Regulatory Authority (FINRA) if the violation is belatedly detected for two years.
It should be noted that the Financial Industry Regulatory Authority retains the jurisdiction over an individual that is registered for 2 years when the individual leaves the industry.
Shelton Co. purchased a parcel of land six years ago for $855,500. At that time, the firm invested $127,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $45,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $907,000. What value should be included in the initial cost of the warehouse project for the use of this land
Answer:
$907,000
Explanation:
We will only consider the relevant cost here in the warehouse project. As the purchase cost and grading cost has been incurred in the past due to that they are sunk cost, there is no relevance of these cost in this project. The lease is about to expire and has no value So we will only consider the current value of land as relevant and include it in the initial cost of the warehouse project for the use of this land.
A 10-year corporate bond has a 6 percent coupon, a call premium of $60, and a first call date in year 4. Market interest rates are 6.5 percent and are expected to rise for an extended period. If you plan to hold the bond, which yield should you most consider before buying the bond
Answer:
YTC = 8.3%
Explanation:
you should calculate the yield to call (YTC)
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
but we first need to calculate the market value:
PV of face value = $1,000 / (1 + 6.5%)¹⁰ = $532.73
PV of coupons = $60 x 7.18883 (PV annuity factor, 6.5%, 10 periods) = $431.33
market price = $532.73 + $431.33 = $964.06
YTC = {60 + [(1,060 - 964.06)/4]} / [(1,060 + 964.06)/2] = 83.985 / 1,012.03 = 8.3%
Hearing that her job has been terminated, Eleanor has responded by saying, "I never will get another job. There is no other work that I can do." Her counselor responds by saying, "There are other jobs that you can do. I will help you consider other types of work." The counselor's statements most clearly fits:______.
A. Holland's theory.
B. Myers- Briggs Type theory.
C. social learning theory.
D. Super's developmental theory.
Answer:
C
Explanation:
As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more money, so the interest rate falls. c. people will want to hold less money, so the interest rate falls. d. people will want to hold less money, so the interest rate rises
Answer:
The answer is C.
Explanation:
As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.
As price level falls, value of money decreases because a unit of money will more of goods or services.
During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.
With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.
After the meeting to address how to handle a competitor that the group fears is about to take considerable market share from the company, Terry learns that the competitor is actually laying off workers and is not likely to be the threat they thought it was. Terry decides not to tell the others about this development because the group was very confident in the decisions it made about how to better compete.
The question is incomplete:
After the meeting to address how to handle a competitor that the group fears is about to take considerable market share from the company, Terry learns that the competitor is actually laying off workers and is not likely to be the threat they thought it was. Terry decides not to tell the others about this development because the group was very confident in the decisions it made about how to better compete.
-Groupthink
-Mindguard
-Nominal Group Technique
Answer:
-Mindguard
Explanation:
-Groupthink is when a group get to an agreement without considering the consequences of the decision to avoid affecting the balance that the group has reached.
-Mindguard is when a person in the group gives limited information that can cause doubts to maintain the idea the group has.
-Nominal Group Technique is a method in which everyone is encouraged to provide ideas that are evaluated and chosen as a group to get to a quick agreement.
According to this, the answer is that this exemplifies mindguard because Terry is acting as a filter by not providing the information he knows to allow that the decisions that the group made are not affected as he doesn't want to damage the confidence the group has.
If the dollar buys fewer bananas in Honduras than in Guatemala, then traders could make a profit by
a. buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras.
b. buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala.
c. buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala.
d. buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras.
Answer:
The correct answer is C)
Explanation:
Given that the price for bananas is cheaper in Guatemala, suppliers will be driven to make a quick profit just by buying from the Guatemalan market to sell in the Honduras economy.
This, however, will cause the prices of bananas to rise in Guatemala. Because, according to the basic principles of economics, the higher the demand the higher the price.
Cheers!
Match each word with the phrase that best defines it.
service
a measure of how financially worthy a
person is to receive loans
credit score
the act of stealing and using someone
else's personal information
identity theft
a condition of financial failure
bankruptcy
a resource that is provided to meet
consumers' needs
Answer:
Credit score - A measure of how financially worthy a person is to receive loans .
Identity theft - the act of stealing and using someone else's personal information .
Bankruptcy - A condition of financial failure
Consumers' needs - A resource that is provided to meet .
Explanation:
The Credit score is described as the numerical expression which represents an individual's creditworthiness. This number is determined by the evaluation of past credit files of the person which makes him/her worthy or not worthy to seek loans from the bank.
Identity theft is a term employed for describing an illegal or fraudulent use of a person's identity or personal information for seeking financial or other advantages(obtaining credit, medical services, file taxes, etc.) associated with that person.
Bankruptcy is demonstrated as the term used for 'legal declaration or recognition of the condition of insolvency of an individual or financial organization.' In this situation, the person or organization fails to repay the debts.
Consumer needs are described as the resources(product or service) that the consumers require to meet a particular need. In economic terms, it is the customer's desire for a resource or good for a specific benefit or advantage. For example: a fan would help the consumer to eliminate the feeling of heat.
On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,800; Allowance for Doubtful Accounts, credit balance of $1,121. What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible
Answer:
Amount of Bad debts expenses is $3,819
Explanation:
Estimated balance of allowance for doubtful debts account = Accounts receivables * 5%
= $98,800 * 5%
= $98,800 * 0.05
= $4,940
Calculation
Estimated balance of allowance for doubtful debts account = $4,940
Less: Un adjusted credit balance in allowance account = ($1,121)
Bad debts expenses= $3,819
The un-adjusted credit balance is deducted from the estimated balance of allowance accounts. The un-adjusted debit balance is added to the estimated balance of allowance accounts.
The closing of a real estate transaction generally involves two closings. One is the closing of the real estate sale in which the deed is delivered in exchange for the purchase price. The other is the closing of the
Answer:
Buyer's loan and the disbursement of the mortgage funds in exchange for the note and mortgage
Explanation:
The closing of a real estate transaction involves two closings. The parties to the contract are represented by atorrneys, and the deed is legally delivered to the buying party and the consideration to seller, along with the closing of the buyer's loan and this closing of buyer's loan involes the disbursement of mortgage funds for financing note and mortgage.
If a firm's business activities do not result in profit maximization, whilst alternatives exist, then such activities amount to irresponsible actions. Discuss any five sets of economic responsibilities firms must embrace to ensure the protection and enhancement of the business.
Explanation:
For a company to remain profitable and competitive in the market, it must build a solid and positive positioning that guarantees itself and its stakeholders reliability and competence.
For this, some practices must be adopted in all its internal and external processes. Can be:
Compliance with local legislation. Development of policies that promote ethical behavior .Development of social programs .Environmental management focused on minimizing environmental impacts. Transparency in accounting results.The company must institute social and environmental policies and practices since its strategic planning, as currently at a level of global competitiveness, companies are responsible for developing corporate governance with a focus on helping to promote good practices that assist in the development of society and preserving the environment. Having positive values builds a positioning that increases the reliability of the company's processes and ensures the continuous improvement of the processes, the reduction of waste, the attraction of investors, etc.
The master budget of Carpenter Company shows that the planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $480,000 Machine supplies 120,000 Indirect materials 140,000 Depreciation on factory building 100,000 Total manufacturing overhead $840,000 A flexible budget for a level of activity of 120,000 machine hours would show total manufacturing overhead costs of:
Answer:
Total overhead cost= $988,000
Explanation:
Giving the following information:
Activity level= 100,000 machine hours
Indirect labor $480,000
Machine supplies 120,000
Indirect materials 140,000
Depreciation on factory building 100,000
First, we need to calculate the unitary overhead costs per machine-hours. Depreciation is a fixed cost.
Indirect labor= 480,000/100,000= $4.8
Machine supplies= 120,000/100,000= $1.2
Indirect materials= 140,000/100,000= $1.4
Now, we can determine the total overhead cost for 120,000 machine hours.
Indirect labor= 4.8*120,000= 576,000
Machine supplies= 1.2*120,000= 144,000
Indirect materials= 1.4*120,000= 168,000
Depreciation= 100,000
Total overhead cost= $988,000
An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy. What is the term used to describe the situation above
Answer: adverse selection
Explanation:
From the question, we are told that an
insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.
The idea above is called adverse selection. This is a situation whereby either the seller or the buyer believes that he or she has more information than the other person regarding a particular product.
Global Technology’s capital structure is as follows: Debt 15 % Preferred stock 50 Common equity 35 The aftertax cost of debt is 6.00 percent; the cost of preferred stock is 10.00 percent; and the cost of common equity (in the form of retained earnings) is 13.00 percent. Calculate the Global Technology’s weighted cost of each source of capital and the weighted average cost of capital.
Answer:
1. 0.9% ; 5% ; 4.55%
2. 10.45%
Explanation:
Cost of equity = 13%
After tax cost of debt= 6%
Cost of preferred stock = 10%
Weight of debt = 15%
Weight of preferred stock = 50%
Weight of equity = 35%
Therefore;
1
•After tax weighted cost of debt = weight of debt × after tax cost of debt
= 0.15 × 0.06
= 0.009
= 0.9%
•Weighted preferred stock cost = Weight of preferred stock × cost of preferred stock
= 0.50 × 0.10
= 0.05
= 5%
•Weighted common equity stock cost = weight of equity × cost of equity
= 0.35 × 0.13
= 0.0455
= 4.55%
2.
• Weighted average cost of the firm
= After tax weighted cost of debt + Weighted preferred stock cost + Weighted common equity stock cost
= 0.9% + 5% + 4.55%
= 10.45%
Joe Jones, the proprietor of Joe Jones Financial Planning Inc., which is registered as an investment adviser in New York State, has decided that he can expand his business by setting up an Internet website. He includes a questionnaire that solicits individuals to transmit information about their investment objective, financial situation, financial needs, risk tolerance level and investment time horizon, which he will use to create a financial model and plan for a fee. Which statement is TRUE
Available Options are:
A. Joe Jones financial planning Inc. must register with the S EC as an investment advisor but is not required to register as an investment advisor in each state where customers complete the questionnaire
B. Joe Jones financial planning Inc. is not required to register with the SEC as an investment advisor, but the firm is required to register as an investment advisor in each state where customers complete the questionnaire
C. Joe Jones financial planning Inc. is required to register with the SEC as an investment advisor, and the firm is required to register as an investment advisor in each state where customers complete the questionnaire
Answer:
Option B is correct.
Explanation:
Because the reason is that Joe Jones financial planning Inc., is not a large size firm hence they are not required to register with the SEC whereas they are required to register as an investment advisor in each state where they are operational as an investment advisor and are processing cases of customers who complete the questionnaire.
Collective bargaining refers to a. firms colluding to set the wages of employees below equilibrium. b. the process by which unions and firms agree on the terms of employment. c. the process by which the government sets exemptions from the minimum wage law. d. setting the same wage for all employees to prevent conflict among workers.
Answer: the process by which unions and firms agree on the terms of employment.
Explanation:
Collective bargaining is the negotiation that takes place between the employers and the workers in order to reach an agreement regarding the wages or salaries, benefits, sworking conditions, and other rights for the employees.
Therefore, collective bargaining is the process by which unions and firms agree on the terms of employment.
The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of goods in the United States costs $50, how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold
Answer:
100 florins
Explanation:
Purchasing Power Parity is a theory which compares currency of different countries through basket of goods. This is a method to compare purchasing power of currencies of different countries. If nominal exchange rate is 2 Aruban florin per dollar and basket of good in United States cost $50 then there must be 100 florins in the basket.
2 Florin per dollar * $50 = 100 Florins.
Question 1 What forces have caused cost and management accounting systems designed decades ago to become less relevant and less valuable for organizational employees in today's globally competitive environment? Question 2 As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry in Ghana. They further require you to advise them on what products or services can target costing be applied.
Answer to Question 1:
The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:
The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.Answer to Question 2:
The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.
As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.
By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.
When a firm is given monopoly power, it loses its freedom of contract, and a governmental body is given the power to determine the provisions of its contracts. The government agency is providing ________.
Answer:
The government agency is providing basic and/or essential services that further deepen the interests of members of the public
Explanation:
The assertion that a firm with a monopoly power loses it freedom of contract is very true. Monopolies by its realities come with features that ultimately cater for the interests of the firm, instead of the consumers. One of these is charging an astronomical high price on a particular item of commodity, and not taking cognizance of the purchasing power of the public. A firm could to this, and ultimately get away because its the only delivering such services - the one with the enormous monopoly power. Here, there is no stiff competition among goods that may offer liberty of choices to ordinary consumers.
To mitigate these numerous power of monopolies, governmental body has been giving the power to regulate and maintain an oversight functions. They now determine the provisions of contracts. The main objective of government agency, thus, is to ensure a firm with a monopoly power considers the basic and essential interests of the members of the public - the end users. Here, members of the public are insulated from unnecesary exploitation by the monopolies.
help me out, please.
Answer:
a) Sub total of Kevin's order = $49.99
b) Total of Kevin's order = $62.99
Explanation:
In an invoice, the subtotal for a person's transaction of order is the sum of the item only without the addition of taxes, shipping, credit card fees(if they order and pay for the item online), discounts e.t.c
The total amount for the purchase of an order is the sum total which includes cost of the goods, discounts, taxes, shipping fees e.t.c.
For Kevin,
a) His Subtotal is the cost of his Base ball jacke × number of jackets
= $49.99 × 1
= $49.99
b) Total of Kevin's order
= Cost of his Base ball jacket + Shipping and Handling fee + Credit card fee
Shipping and Handling fee = $10.00 Credit card fee = $3.00
Total = $49.99 + $10.00 + $3.00
= $62.99
Strategists should: Select one: a. Understand the nature of principal-agent and principal-principal conflicts to create better governance mechanisms. b. Develop firm-specific capabilities to differentiate on governance dimensions. c. Understand the rules, anticipate changes, and be aware of differences, especially when doing business abroad. d. All of the above.
Answer:
d. All of the above.
Explanation:
A strategist can be defined as any individual who is knowledgeable, intuitive, brilliant, intelligent in planning the best way to achieve aims, goals and overwhelming success in a particular task or area. They are very good at strategizing the best way to gain advantage in real life situations.
Generally, a strategist should be very good at setting goals, identify the best to achieve these goals and using available resources to execute his plans.
Hence, a strategists should:
a. Understand the nature of principal-agent and principal-principal conflicts to create better governance mechanisms.
b. Develop firm-specific capabilities to differentiate on governance dimensions.
c. Understand the rules, anticipate changes, and be aware of differences, especially when doing business abroad.
Also, a strategist should use his knowledge about corporate governance in answering the four (4) fundamental questions in strategy, which are;
- Why are we (organization) here?
- What do we (organization) stand for?
- Where are we heading (mission and vision)?
- How do we get their (goals)?
What is true regarding local government budgets? (Select all that apply) Large portions of local budgets support elementary education. Revenue comes from intergovernmental payments. Expenditures include police and fire departments. Localities fund social security benefits for retired residents.
Answer:
All that is true regarding local government budgets:
Large portions of local budgets support elementary education.
Revenue comes from intergovernmental payments.
Expenditures include police and fire departments.
Explanation:
Local government budgets in the U.S.A. are detailed financial, operational, and policy documents that give details about the services being rendered by the local government. They specify who gets what services, how much of the services, and who pays for the services.
Local government budgets are done at three main levels, depending on the state. The levels are the city, town, and county levels. These levels of government are headed by the mayor, CEO or manager, either appointed or elected, again depending on the state, with power balanced by the legislature, which is always elected. There are also budgets for specialized projects and purposes.
Funding for local government budgets generally comes from taxes and levies, with support from the state and federal governments.
Which of the following statements support the claim that incentives matter? Explain why or why not. 1. When income transfers to the ablebodied poor increase, the recipients will have less incentive to work. 2. An increase in the fines associated with downloading music and videos protected by copyright laws reduces the number of people engaging in this activity. 3. An increase in the number of people downloading music and videos negatively impacts the commercial production of music and videos.
Answer:
1. When income transfers to the ablebodied poor increase, the recipients will have less incentive to work.
The incentive to work for most people is earning a wage to make a living.
For the poor, this incentive is even more so, because usually, the lack of work for them means severe lacking in their material needs: shelter, food, clothing, electricity, drinking water, and so on.
If the poor are given income transfers from the government, they will have less incentive to work simply because they now obtain some income without the need of doing so.
The incentive to work is reduced even more if the income transfers to the ablebodied poor increase so much that they become higher than the minimum wage. In a situation like this, many ablebodied poor will simply stop searching jobs because they can earn more money from the government by not working.
which statement best explains the relationship between points A and B?
A man is purchasing a house for $325,000. His lender requires a 20 percent down payment and 2 points at closing. The man is also responsible for $2,000 in closing costs. What is the total amount of money he needs to close?
Answer:
$73,500
Explanation:
the man needs enough money to cover:
down payment = $325,000 x 20% = $65,000closing points = $325,000 x 2% = $6,500closing costs = $2,000total = $73,500The closing points are generally paid to the mortgage lender in order to lower the mortgage's interest rate which will result in a lower monthly payment.
Seth owns a property on a small island with six other property owners. Recently, Seth built a fishing pier along the water’s edge; however, the pier is actually on his neighbor’s property, which Seth has no rights to. What might this be an example of?
Answer:
Encroachment.
Explanation:
Encroachment of land occurs when a person violates his neighbors property right through building a structure that extends beyond the boundary of his land and into another person's property.
However , this may be mutually agreed on by the two parties involved , and compensation given under a term called easement.
In a situation where the encroached property belongs to the government , this is referred to as structural encroachment and the government may destroy such structure without giving any compensation
While moving into a newly purchased home, the buyer discovered that the seller had taken the ceiling fan that hung over the dining room table. The seller has not indicated that the ceiling fan would be removed, and the contract did not address this issue. Which statement is TRUE
Options :
a. Ceiling fans are usually considered real estate.
b. The ceiling fan belongs to the seller.
c. Ceiling fans are considered trade fixtures.
d. Ceiling fans are considered personal property.
Answer: a. Ceiling fans are usually considered real estate.
Explanation: The ceiling fan should be transferred to the buyer as it is considered real estate. Items of this nature becomes part of the real estate property as they have become attached to the home. Also, since ceiling fan is present at the time of purchase and there was no written or verbal agreement that it will be detached from the property once the property is sold. Therefore, the ceiling fan is a real estate and should be a part of what was purchased by the buyer.