Answer:
Sally can do very little in this case due to the parol evidence rule. In common law, the parol evidence rule limits what type of evidence one party can use in a court in order to support their arguments. In this case, Sally cannot present the evidence of an oral contract because it was previous to the signing of the written contract. This rule doesn't allow certain older evidence to be presented in order to support a change of an existing contract.
I.e. an individual cannot try to change the terms of a contact once they have been signed just because in older contracts certain parts were different.
Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this stage for $420.000. Alternatively, the units can be further processed at a $280.000 total additional cost and be converted into 6.000 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $106 and for Product C is $52.
Required:
Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not.
Answer:
It is more profitable to continue processing the units.
Explanation:
Giving the following information:
Product A:
Units= 23,000
Selling price= $420,000
Continue processing:
Product B= 6,000 units sold for $106 each
Product C= 11,900 units sold for $52 each
Total cost= $280,000
We need to calculate the effect on the income of both options and choose the most profitable one. We will not take into account the first costs of Product A because they are irrelevant.
Option 1:
Effect on income= $420,000
Option 2:
Effect on income= (6,000*106) + (11,900*52) - 280,000
Effect on income= $974,800
It is more profitable to continue processing the units.
SilverFinn makes high-end jewelry for women. This jewelry is manufactured and patented in Italy. Manufacturers in Argentina create counterfeit SilverFinn jewelry and sell it in local markets at nearly similar prices to the original SilverFinn jewelry sold in other countries. This lack of intellectual property protection is like to result in
Answer: a. reduction in export opportunities from Argentina to other countries.
Explanation:
SilverFinn jewellery probably has intellectual property protection in other countries so when Argentinian producers make those counterfeits, they will be unable to sell it outside Argentina where it would not be allowed to be sold. This will reduce the export opportunities from Argentina to other countries.
It may also reduce the export opportunities of other goods from Argentina because other countries might be slow to trust that what Argentina is sending are indeed genuine goods because they have been known to counterfeit SilverFinn jewelry.
Wagner Enterprises and Stone Services both disposed of an old asset. When completing the journal entry, Wagner Enterprises included a debit to Cash, but Stone Services did not. Why would the companies have this difference in the journal entry
Answer:
Wagner Enterprises and Stone Services
Disposal of old asset:
It could be that Stone Services exchanged its old asset with a new one with a company. In that situation, the debit goes to New Equipment, while the credit is to the old Equipment. Another reason could be that Stone Services sold the old asset on account. In this situation, the debit goes to the Accounts Receivable account, while the old asset is credited accordingly.
Explanation:
When a company disposes of an old asset, it credits the asset account and transfers the amount to the Sale of Asset account. The same is done for the accumulated depreciation, in reverse. When cash is realized from the disposal, the Sale of Asset account is credited, while Cash account is debited. Then, the difference in the Sale of Asset account will be a gain or a loss, depending on the net book value and the cash realized from the sale.
Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,100 units in 2016 and 1,550 units in 2017. Required: a. Calculate depreciation expense for 2016 and 2017 using the straight-line method.
Answer:
Annual depreciation= $4,000
Explanation:
Giving the following information:
The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (29,000 - 9,000)/5
Annual depreciation= $4,000
A decrease in real GDP causes a __________the money demand curve. A decrease in interest rates causes a__________ the money demand curve. An increase in the aggregate price level causes a_____________ the money demand curve.
Answer:
A decrease in real GDP causes a decrease in the money demand curve. A decrease in interest rates causes an increase in the money demand curve. An increase in the aggregate price level causes an increase in the money demand curve.
Explanation:
A demand curve is a graphical representation of the demand for money. Highlighting the demand for money in relation to price.
If real GDP increases, it will increase the need to have money to purchase goods, as there is already an increase in goods produced or available in the market. The need to have more money to purchase the more goods available in the market will drop once real GDP drops.
When the quantity of money demanded increases, it affects the price as well, as price increases, causing an increase in the demand curve. Talking about interest rates, a decrease in the interest rate will lead to an increase in the quantity of money demanded which will lead to an increase in the money demand curve.
The aggregate price level measures the entire prices in the economy. It gives a quick view of how the market pricing system is.
When the price level is high, an individual will have to spend more meaning there will be an increase in the demand for money to purchase the desired goods leading to a direct increase in the money demand curve.
A decrease in real GDP causes a leftward shift in the money demand curve. A decrease in interest rates causes a rightward shift in the money demand curve. An increase in the aggregate price level causes a rightward shift in the money demand curve.
What is the money demand curve?The money demand curve illustrates the demand for money at a given interest rate. It is a downward-sloping curve that means there is an inverse relationship between demand for money and the interest rate.
The shift in money demand curve:
The money demand curve shifts to the right as the demand for money increases and it shifts to the left as demand decreases.
The demand for money will increase due to a rise in real GDP, a fall in interest rate, an increase in the price level, a change in expectations, and similar reasons.
The demand for money will decrease due to inverse change in the above factors.
Therefore, the answers to the blanks are:
leftward shift,
rightward shift, and
rightward shift.
Learn more about the money demand curve here:
brainly.com/question/25795809
Decreasing the discount rate is Group of answer choices a contractionary policy because it reduces banks' profit margins by lowering the return on lending. g
Complete Question:
Decreasing the discount rate is:
Group of answer choices:
a) an expansionary policy stance because consumers and businesses can now borrow funds directly from the Fed at a lower cost, thereby encouraging private spending.
b) a contractionary policy stance because the cost of borrowing funds falls, thereby encouraging consumption
and investment spending.
c) a contractionary policy because it reduces banks' profit margins by lowering the return on lending.
d) an expansionary policy stance because it will be less costly for banks to borrow funds and this puts
downward pressure on interest rates in the economy.
Answer:
d) an expansionary policy stance because it will be less costly for banks to borrow funds and this puts
downward pressure on interest rates in the economy.
Explanation:
Decreasing the discount rate is an expansionary policy stance because it will be less costly for banks to borrow funds and this puts downward pressure on interest rates in the economy.
An expansionary monetary policy can be defined as a strategic policy or actions of Central Bank such as "The Fed" that expand or increases the money supply so as to stimulate the economy. The expansionary monetary policies could also be adopted to lower short-term interest rates. Consequently, the effect of the expansionary policy would be to shift the aggregate demand curve to the right, therefore causing economic growth within the country.
Additionally, the interest rate charged on money supply or currencies to banks by the central bank is known as the discount rate.
In conclusion, when banks are charged lowered discount rates, it will cost them less to borrow money from the central bank and as a result there would be an increase in money supply; thus, availing them the opportunity to give out more loans to their customers.
Sunland Company had net credit sales of $13017000 and cost of goods sold of $10351500 for the year. The average inventory for the year amounted to $1545000. The inventory turnover for the year is
Answer:
Inventory turnover= 6.7
Explanation:
Giving the following information:
cost of goods sold= $10,351,500
The average inventory for the year amounted to $1,545,000.
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Inventory turnover= 10,351,500 / 1,545,000
Inventory turnover= 6.7
Calculate the earnings of workers A, B and C under the Straight Piece
Rate System and Merrick’s Differential Piece Rate System from the
following particulars.
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units.
Working hours per day are 8
Answer:
Earnings of Workers:
Rates Systems
Worker Straight Piece Merrick's Differential Piece
A $35.10 $28.08
B $40.50 $32.40
C $54.00 $64.80
Explanation:
a) Data:
Normal rate per hour: Rs. 5.40
Standard time per unit: 1 minute
Output per day is as follows.
Worker A – 390 units
Worker B – 450 units
Worker C – 600 units
Working hours per day are 8
b) Calculations:
i) Standard units per day = 8 x 60 minutes = 480 units
ii) Earnings per day is as follows.
Worker A – 390 units :
Straight piece Wages = 390 / 60 x $5.40 = $35.10
Merrick's Earnings = 390/60 x $5.40 x 0.8 = $28.08
Worker B – 450 units :
Straight piece Wages = 450 / 60 x $5.40 = $40.50
Merrick's Earnings = 450/60 x $5.40 x 0.8 = $32.40
Worker C – 600 units:
Straight piece Earnings = 600 / 60 x $5.40 = $54
Merrick's Earnings = 600/60 x $5.40 x 1.2 = $64.80
c) The factor for multiplying the rate is obtained by dividing the units produced by the number of minutes in an hour, in order to convert output to a rate based on the hour.
d) The standard output per day helps Merrick in calculating the weights to be assigned to each worker and differentiate the slow worker from the superior worker (hence, the name: Merrick's Differential Piece Rate). The slow workers (those who produce below the standard output) are paid a rate lower than the standard rate by adding a weight of 0.8 as a punishment while the superior worker is assigned a weight of 1.20 as a reward for good performance. Meanwhile, a standard performer who produced 480 units will be paid the normal rate or weighed as 1.0.
An elderly investor has a short-term investment time horizon, is very concerned about loss of liquidity and is very risk averse. Your main concern when making a recommendation to this client is:
Answer:
Preservation of Capital
Explanation:
In a scenario such as the one described in the question, the main recommendation to the client should be Preservation of Capital. Meaning that the primary goal that the client should look towards is preventing any loss in a portfolio, this is usually done by investing in the safest short-term instruments, such as Treasury bills and certificates of deposit, and staying away from assets that have more risk and have the possibility of becoming a loss.
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools: fabrication,, $448,000; assembly, $180,000; setup, $222,600; and inspection, $189,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication $ per direct labor hour
Assembly $ per direct labor hour
Setup $ per setup
Inspection $ per inspection
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat $ per unit
Bass boat $ per unit
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated factory overhead:
fabrication, $448,000
assembly, $180,000
setup, $222,600
inspection, $189,000
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
First, we need to calculate the predetermined overhead rate for each activity using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
fabrication= 448,000/28,000= $16 per direct labor hour
assembly= 180,000/30,000= $6 per direct labor hour
setup= 222,600/420= $530 per setup
inspection= 189,000/700= $270 per inspection
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Speed boat:
Allocated MOH= 7,000*16 + 22,500*6 + 50*530 + 88*270= $297,260
Bass boat:
Allocated MOH= 21,000*16 + 7,500*6 + 370*530 + 612*270= $742,340
Finally, the unitary overhead cost:
Speed boat= 297,260/5,000= $59.45
Bass boat= 742,340/5,000= $148.47
Fritz, Inc.'s unit selling price is $75, the unit variable costs are $45, fixed costs are $150,000, and current sales are 10,000 units. How much will operating income change if sales increase b
The question is incomplete. Here is the complete question.
Fritz, Inc.'s unit selling price is $75, the unit variable costs are $45, fixed costs are $150,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units
Answer:
$150,000 increase
Explanation:
Fritz has a unit selling price of $75
The unit variable cost is $45
The fixed costs are $150,000
The current sales are 10,000 units
The first step is to calculate the contribution margin
Contribution margin= sales price - variable cost
= $75-$45
= $30 per unit
Therefore, the change in the operating income when sales increase by 5,000 units can be calculated as follows
= 5,000 units × $30
= $150,000 increase
Hence the operating income will increase by $150,000 when there is an increase in the sales by 5,000 units
Wanda Sotheby purchased 120 shares of Home Depot stock at $148 a share. One year later, she sold the stock for $140 a share. She paid her broker a commision of $34 when she purchased the stock and a commision of $39 when she sold it. During the 12 months she owned the stock, she received $427 in dividends. Calculate Wanda’s total return on this investment. (A loss should be indicated with a minus sign.)
Answer:
Return on investment = -0.71%
Explanation:
The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.
Dividend is the proportion of the profit made by a company which is paid to shareholders.
Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.
Therefore, we can can compute the return on the investment as follows:
Total Return on investment =
(Capital gain/ loss + dividend )/purchase price × 100
Capital loss = (184 -140) × 120 = - 480
Dividend = 427
Commission = 34 + 39 =-73
Net loss on investment = - 480 - 73 + 427= -126
Return on investment = -126 /(148× 120) = -0.71%
Return on investment = -0.71%
a friend wants to borrow money from you. He states that he will pay you $3000 every 6 months for 12 years with the first payment exactly 3 years and six months from today. The interest rate is an APR of 5.3 percent with semiannual compounding. What is the value of the payments today?
Answer:
$45,111.41
Explanation:
For calculation of value of the payments today first we need to find out the value at 3 years which is shown below:-
Value at 3 years = PMT × (1 - (1 ÷ (1 + r^n))) ÷ r
= $3,000 × (1 - (1 ÷ (1.0265 ^24))) ÷ 0.0265
= $52,776.45
Now, The value of the payment today = Value at 3 year ÷ (1 + r^n)
= $52,776.45 ÷ (1.0265^6)
= $45,111.41
Therefore we have applied the above formula.
Financial information is presented below: Operating expenses $ 45,000 Sales returns and allowances 4,000 Sales discounts 6,000 Sales revenue 160,000 Cost of goods sold 90,000 The amount of net sales on the income statement would be:
Answer:
$150,000
Explanation:
To calculate the net sales,
Sales Revenue
$160,000
Sales discount ($6,000)
Sales returns and allowances ($4,000)
Net sales $150,000
Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.
Answer:
$13,000
Explanation:
The total budgeted cost is $15,000
The cumulative actual cost is $10,000
The cumulative earned value is $12,000
Therefore, the forecasted cost at completion can be calculated as follows
= Cumulative actual cost + ( Budgeted cost-Cumulative earned value)
= $10,000 + ($15,000-$12,000)
= $10,000 + $3,000
= $13,000
Hence the forecasted cost at completion is $13,000
Dave Krug finances a new automobile by paying $6,500 cash and agreeing to make 20 monthly payments of $580 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimal places.)
Answer:
$16,966.68
Explanation:
the cost of the car = down payment + present value of the monthly installment payments
down payment = $6,500PV of monthly installment payments = $580 x 18.046 (PV annuity factor, 1%, 20 periods) = $10,466.68the cost of the car = $6,500 + $10,466.68 = $16,966.68
Assume your required internal rate of return on similar investments is 11 percent. What is the net present value of this investment opportunity? What is the going-in internal rate of return on this investment? Should you make the investment?
Answer:
Hello some parts of your question is missing attached below are the missing parts
You are considering the purchase of a small income-producing property for $150000 that is expected to produce the following net cash flows
End of year cash flow
1 $50000
2 $50000
3 $50000
4 $50000
Answer : a) $5122.28 (b) 12.59% (c) You should make the investment
Explanation:
Internal rate of return = 11 %
initial cash flows = $150000
period = 4 years
Find the NPV (net present value )( using present value tables)
= preset value of cash flows - initial cash flows
= ∑ present cash flows for 4 years - $150000
= $155122.28 - $150000 = $5122.28
The going-in internal rate of return on investment
N (number of years ) = 4
pv ( present value ) = $150000
PMT = -$50000
Fv ( future value ) = 0
IRR = 12.59% ( making use of the cash flow list in our financial calculator )
Applying Excel: Exercise (Part 2 of 2)
Requirement 2:
A
B
1
2
3
4
5
6
7
Chapter 11: Applying Excel
Data
Sales $45,000,000
Net operating income $4,500,000
Average operating assets$15,000,000
Minumum required rate of return 21%
Revise the data in your worksheet as follows:
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
b. What is the residual income? (Negative amount should be indicated by a minus sign.)
c. Why is the residual income positive?
Answer:
ROI 15%
Residual Income $1,350,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $4,500,000 - (21% * $15,000,000 )
RI = $1,350,000
ROI = [tex]\frac{Net Operating Income}{Capital Employed}[/tex]
Capital Employed = Sales - Average operating assets
ROI = 15%
Residual income is positive when the department has meet the minimum return requirement. Minimum return is the return that is required by the company stakeholders. The particular projects and activities are selected on the basis of residual income.
Coolibah Holdings is expected to pay dividends of $ 1.10 every six months for the next three years. If the current price of Coolibah stock is $ 22.00, and Coolibah's equity cost of capital is 14%, what price would you expect Coolibah's stock to sell for at the end of three years?
Answer:
$25.15
Explanation:
The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:
=fv(rate,nper,pmt,-pv)
rate is the semiannual cost of capital i.e 14%/2=7%
nper is the number of dividend payments over three-year period which is 6
pmt is the amount of semiannual dividend payment
pv is the current stock price
=fv(7%,6,1.1,-22)=$25.15
Two firms examined the same capital budgeting project which had an IRR of 16%. One firm accepted the project but the other rejected it. One of the firms must have made an incorrect decision.
Discuss the validity of this statement.
Answer:
the statement is not valid. A company can reject the 16% IRR project if it is less than its discount rate. the discount rate is the minimum acceptable rate at which a project can be accepted. so, if 16% is less than than the discount rate, the project would be rejected.
on the other hand, if the discount rate is less than 16%, the project should be accepted because the return of the project would be greater than the discount rate.
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
eal per capita GDP in Singapore in 1961 was about $450, but it doubled to about $900.00 by 1978. a. What was the average annual economic growth rate in Singapore over the 17.00 years from 1961 to 1978
Answer:
The answer is 4.16%
Explanation:
Per capita GDP is the average income earned per person in a given country during a given period of time usually a year.
Per capita GDP in Singapore in 1961 equals $450
Per capita GDP in Singapore in 1978 equals $900
Difference between 1978 and 1961 is 17 years.
The formula for economic growth rate is;
[(End value/beginning value)^1)/17] - 1
[($900/$450)^1/17] - 1
1.041613 - 1
0.0416
Expressed as a percentage:
4.16%
"Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3, fixed manufacturing overhead $10, variable selling and administrative expenses $1, and fixed selling and administrative expenses $8. Using a 25% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)"
Answer:
The target selling price =$45
Explanation:
The target selling price is the sum of the total unit cost plus 25% of the the unit cost
The target selling price = Total per unit cost + (25% × total unit cost)
The total unit cost is the sum of all the costs involved making the product available to the consumer.
The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.
Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36
The target selling price = 36 + (25% × 36) = $45
The target selling price =$45
A disadvantage of using stock options to compensate managers is that:________
A) it encourages managers to undertake projects that will increase stock price.
B) it encourages managers to engage in empire building.
C) it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects.
D) All of the above
Answer:
C) it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects
Explanation:
A disadvantage of using stock options to compensate managers is that it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects.
A stock option is a contractual agreement that gives a buyer (investor) the right but certainly not an obligation to buy or sell a stock at a specified price and date, depending on the options' form. Generally, in business finance there are basically two (2) types of options;
1. Puts: it is a bet that a stock will likely fall in the short or long run.
2. Calls: it involves betting that a stock will rise in the short run or long run.
Hence, if managers are compensated with a stock option it gives them the opportunity to cash out early.
The Grondas, who owned a party store along with land, fixtures, equipment, and a liquor license, entered into a contract to sell their liquor license and fixtures to Harbor Park Market in an agreement that was expressly conditioned on approval by the Grondas' attorney. The Grondas submitted the contract to their attorney but before the attorney had approved it, they received a second, better offer and submitted that contract to the attorney as well. The attorney reviewed both agreements and approved the second one. Harbor Park Market sued the Grondas for breach of contract. Will their suit succeed?
Answer:
No the suit will not succeed as their is no agreement
Explanation:
The contract was conditional contract. As the condition explicitly said that, the right to agree on terms and conditions is explicitly attorney's right. When the attorney has not agreed on the terms and conditions of Harbor Park, the company hasn't formed any contract. Furthermore, there is no limitation on Grondas to consider other available options and attorney is also not obliged to agree to Harbor's offer.
Thus the suit that says Grondas has breached the contract is meaningless and will not succeed in the court.
"If the regulations for environmental protection were strictly adhered to and industries, cities, and individuals considered the environment crucial for survival and a thriving market, what would be the benefits from this change
Explanation:
The benefits arising from complying with an environmental protection regulation would be diverse for society, for companies and for the environment as a whole.
It is ideal to recognize the scarcity of natural resources, and knowing how to preserve them as citizens is everyone's duty. Environmental awareness and compliance with regulations would lead to significant changes in quality of life, air, water, decrease the greenhouse effect, decrease respiratory diseases, etc.
For the industry, complying with environmental regulation makes it better positioned in the market, attracts more investors, motivates employees more, reduces unnecessary risks and costs in addition to enhancing the continuous improvement of processes as a whole.
Barbara Hastings has no children of her own, but she does have a beloved niece named Ellen Laughridge. Attentive to the future financial needs of Ellen, Barbara secures a $500,000 life insurance contract from Chameleon Insurance Company, listing Ellen as the sole beneficiary. Barbara has every intention to inform Ellen of her new life insurance policy, but "life gets in the way," and she neglects to do so. Hastings dies on January 15, 2005. As part of her estate distribution, Ellen receives a chest-of-drawers from her dear aunt. On August 29, 2007, while rearranging her clothing in the chest-of-drawers, Ellen comes upon a secret compartment. In the secret compartment is an original copy of the life insurance contract. Ellen is overjoyed to see her name listed as beneficiary, and she contacts Chameleon Insurance Company immediately. Upon review of the policy, Chameleon denies coverage. Chameleon’s claims representative points to Section 15(b) of the policy, which specifically requires notification of the insured’s death no later than one year after death. It has been over two years and seven months since Barbara Hastings died. 1. Will Ellen recover the $500,000 in insurance proceeds? 2. Is it ethical for an insurance company to deny a claim on the basis of a "technicality?"
Answer:
1. Ellen would only be able to recover the $500,000 insurance proceed if she should be able to find a technicality in the insurance company's rules and regulation. This is because, strictly following the rules, there is nothing she can do regarding to the claim.
2. It is not ethical for the insurance company to deny the claim of Ellen on the basis of technicality but when viewed from another perspective, they are strictly following the rules of the insurance organization and applying it to the later. It is now left for the claimant to find another technicality on why he or she must be paid the insurance claim.
Explanation:
Assessing the communication forms and orientations of coworkers and assessing their sources of identity is an example of which phase of the risk negotiation cycle
Answer:
Attending
Explanation:
There are four steps in the risk negotiation cycle that includes attending, sensemaking, transforming and maintaining.
While assessing and analyzing the forms of communication and the workers orientations with respect to identify the sources reflects the attending phase whether the employees attend the orientations and according to that the analyzed could be done
Therefore this is an attending phase
Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and the other issue had a 12 year maturity.Both bonds are paying 4.25% annual interest. Investors only require a 3.75% return, which of the following statements is true?
a) The 7 year bond issue is riskier than the 12 year bond issue
b) Both bond issues have the same amount of risk
c) The 7 year bond price will be selling closer to par value
d) The 12 year bond price will be selling closer to par value
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is true and which one is false? Then again, are they both true or both false? Statement 1: People decide to have fewer children. The demand curve for minivans will shift to the right. Statement 2: The stock market crashes lowering people’s wealth (Hint: Minivan would be considered a normal good). The demand curve for minivans will shift to the right.
Answer:
both statements are false
Explanation:
if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.
also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.
A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
If per capita output falls by 2 percent and population grows by 3 percent, output: Multiple Choice grows by 1 percent. grows by 5 percent. falls by 1 percent. falls by 5 percent.
Answer:
grows by 1 percent.
Explanation:
The Growth rate of per capita output refers to the relationship between the growth rate of output and the growth rate of population i.e by taking the difference between them
In mathematically,
The Growth rate of per capita output = Growth rate of output - a growth rate of population
-2% = growth rate of output - 3%
So, the growth rate of output is 1%.
Therefore it grows by 1%