Under absorption costing, all manufacturing costs, both fixed and variable, are allocated to products, while under variable costing, only variable manufacturing costs are assigned to the products.
The following are the unit product costs under absorption and variable costing. July August Absorption costing $20 $20 Variable costing $12 $12. Contribution format variable costing income statements for July and August are given below: July August Sales $900,000 $1,200,000 Variable expenses: Cost of goods sold 360,000 480,000 Selling and administrative expenses 140,000 147,000 Total variable expenses 500,000 627,000 Contribution margin 400,000 573,000 Fixed expenses: Manufacturing overhead 50,000 50,000 Selling and administrative expenses 150,000 158,000 Total fixed expenses 200,000 208,000 Net operating income $200,000 $365,000
In conclusion, the unit product cost is $20 under both absorption and variable costing. Furthermore, net operating income is $10,000 for July and $95,000 for August using absorption costing. Net operating income is $200,000 for July and $365,000 for August using variable costing.
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September 1, 2022 - Issued stock to new owners and received $10,000 cash from the new owners. Account Name Debit Credit A. Cash 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 B. C. D. Common Stock Common Stock Cash Common Stock Retained Earnings Retained Earnings Cash
When a company issues stock to new owners, it receives cash in return.
The amount of cash received is credited to the Cash account, and the amount of stock issued is debited to the Common Stock account. In this case, the company received $10,000 in cash from the new owners, so the Cash account would be credited with $10,000 and the Common Stock account would be debited with $10,000.
The accounting equation states that
Assets = Liabilities + Equity.
When a company issues stock, it increases its assets (cash) and its equity (common stock). The amount of cash received is credited to the Cash account, which increases assets. The amount of stock issued is debited to the Common Stock account, which increases equity. The total effect on the accounting equation is that assets increase and equity increases by the same amount.
In this case, the company received $10,000 in cash from the new owners, so the Cash account would be credited with $10,000 and the Common Stock account would be debited with $10,000. The total effect on the accounting equation is that assets increase by $10,000 and equity increases by $10,000.
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Which of the following is a characteristic of the JIT philosophy?
Multiple Choice
Large lot sizes to maximize efficiencies.
Queues of WIP inventory are a necessary investment.
Suppliers become partners.
Inventories become a valued asset.
Few, large deliveries of orders from suppliers.
The characteristic of the JIT (Just-In-Time) philosophy that is represented among the given options is that D) suppliers become partners.
The Just-in-Time (JIT) philosophy emphasizes the importance of minimizing waste, reducing lead times, and promoting a smooth production flow. In this system, D) suppliers are viewed as essential partners in the process, collaborating closely with the manufacturer to ensure timely delivery of materials and effective communication. This partnership allows for better coordination and synchronization, resulting in improved efficiency and reduced costs in the overall production process.
JIT is a lean manufacturing approach that focuses on producing and delivering products in the right quantity, at the right time, and in the right place, without carrying excess inventory. This requires close collaboration with suppliers to ensure timely delivery of materials and components.
Suppliers in a JIT system are not just seen as vendors but as partners who share responsibility for maintaining a seamless flow of materials. JIT emphasizes the importance of high-quality, reliable, and consistent supply from the suppliers to meet the customer's needs. Thus, suppliers play a critical role in the success of JIT implementation by providing the necessary raw materials and components on time to support production.
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Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an economic rationale for this conservatism? Explain.
Banking and finance have always been associated with the conservative side of the political spectrum.
Banking is an industry based on stability and consistency, and conservatism is a political ideology based on preserving tradition and avoiding radical change. Therefore, bankers and financiers tend to support conservative political parties because they align with their values and interests.
In addition to their political beliefs, bankers are also conservative in their business affairs because of the nature of their industry. Banks are in the business of managing risk, and they do so by being cautious and conservative in their investments. Bankers tend to avoid risky ventures and speculative investments in favor of more stable, long-term investments that will generate consistent returns over time.
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In the past 12 months, the local supplier experienced a dmeand variance of 2302 units and produced an order variace of 4680 units Compute the bullwhip measure for this suppler
The Bullwhip Effect is a phenomenon that happens when small changes in consumer demand lead to more significant and more volatile changes in demand as orders are transmitted through the supply chain.
The Bullwhip Effect can lead to stockouts, overstocking, and lost sales. It is difficult to measure, but some methods can help approximate its effect.The bullwhip measure can be calculated as the ratio of the variance in demand over the variance in orders. The formula to calculate the Bullwhip Measure is:Bullwhip Measure = Variance of Demand / Variance of OrdersThe local supplier experienced a demand variance of 2,302 units and a production variance of 4,680 units over the past 12 months. Therefore, the bullwhip measure for this supplier is calculated as follows:Bullwhip Measure = Variance of Demand / Variance of OrdersBullwhip Measure = 2,302 / 4,680Bullwhip Measure = 0.492In conclusion, the bullwhip measure for this supplier is 0.492. This value is an indication of the level of Bullwhip Effect in the supply chain. The higher the Bullwhip Measure, the greater the Bullwhip Effect and the higher the inventory cost and level of inefficiency in the supply chain.
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O$1.011.20 Question 3 (1 point) ✔ Saved Octagon, M.D., Inc., offers a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually. What is the market price of a $1.000 face value bond if the yield to maturity is 7.8%? O$980.86 O$1,046.55 $1,049.07 $1,050.10 O$1.045.18 Question 4 (1 point) ✔ Saved Which bond would most likely possess the highest degree of interest rate risk?
The bond that has the longest maturity and the lowest coupon rate will have the highest degree of interest rate risk.
The given information is that Octagon, M.D., Inc., offers a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually. The market price of a $1,000 face value bond is to be found if the yield to maturity is 7.8%.The formula to calculate the bond's market price is: P = (C / r) × [1 - 1 / (1 + r)^(n × m)] + FV / (1 + r)^(n × m). Here, C = Semiannual Coupon Payment = (7.5% / 2) × $1,000 = $37.5r = Semiannual Yield to Maturity = 7.8% / 2 = 0.039n = Number of Years to Maturity = 9 years m = Number of Coupon Payments per Year = 2FV = Face Value = $1,000Substituting the values in the above formula, we get: P = (37.5 / 0.039) × [1 - 1 / (1 + 0.039)^(9 × 2)] + 1,000 / (1 + 0.039)^(9 × 2)Therefore, P = $1,049.07Thus, the market price of a $1,000 face value bond is $1,049.07.Question 4: Word Count: 100Bonds with longer maturities and lower coupons will have the most interest rate risk since they have a longer duration. Thus, the bond that has the longest maturity and the lowest coupon rate will have the highest degree of interest rate risk.
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is
this statement TRUE or FALSE?
"The Black-Scholes-Merton pricing formula for a call option is
correct only for investorsthat are risk-neutral."
True. The Black-Scholes-Merton pricing formula assumes that investors are risk-neutral, meaning that they do not require a risk premium to hold risky assets.
In the Black-Scholes-Merton framework, the assumption of risk-neutrality allows for the construction of a replicating portfolio. This replicating portfolio consists of a combination of the underlying asset (such as a stock) and the risk-free asset (such as a Treasury bond) that can replicate the payoff of the option being priced. By constructing such a portfolio, the model can derive an equation that equates the price of the option to the value of the replicating portfolio, leading to the famous Black-Scholes-Merton pricing formula.
It's important to note that in reality, investors do require a risk premium to hold risky assets because they demand compensation for taking on additional risk. The assumption of risk-neutrality is a simplification that allows for the development of a mathematical model, but it is not reflective of real-world investor behavior. Nonetheless, the Black-Scholes-Merton model has proven to be a valuable tool in options pricing and has contributed significantly to the field of financial economics.
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East Point Retail, Inc. sells apparel through company-owned retail stores. Recent financial information for East Point follows (in thousands):
Earnings per share of shareholders' equity, Net Income / Average Stockholders' Equity x 100, Fiscal Year 3, Rate earned on Stockholders' Equity held by common stockholders on average equals ($1,039,500 + $1,060,500) / 2 = $1,050,000.Rate generated on stockholders' equity is calculated as follows: 12.6% ($132,300 / $1,050,000 x 100).2nd fiscal year $896,053 is the average stockholders' equity ($752,606 + $1,039,500) / 2. Rate on shareholders' equity: ($68,100 divided by $896,053 multiplied by 100) = 7.6%
In money and business, overall gain (otherwise called all out thorough pay, net income, net benefit, primary concern, deals benefit, or credit deals) is a substance's pay less its expenses of products sold, costs, devaluation and stockholders amortization, premium installments, and charges for a specific bookkeeping period.
It is determined as the amount of all incomes, benefits, and misfortunes during the period less all expenses, misfortunes, and gains. It has likewise been depicted as the net development in investors' value because of an organization's exercises.
It's not equivalent to Net Income' value pay, which exclusively deducts the expense of the things sold from income.
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21 2.00 points E11-16 Preparing a statement of Retained Earnings and Partial Balance sheet and Evaluating Dividend Policy Cro 11-3, 11-5] The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed: common stock (par $15; authorized 100,ooo shares, issued 29,ooo shares, $435, ooo of which 1,100 shares are held as treasury stock Additional paid-in capital common stock 174,000 Dividends 22,000 Retained earnings, beginning of year 70,000 Treasury stock at cost (1100 shares) 22,000 Net income for the year was $39000 Required 1-a. Prepare the statement of retained earnings for the year ended December 31 BLAKE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Retained Earnings, December 31
BLAKE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 $70,000 Add: Net Income for the year $39,000 Total $109,000 Less: Dividends paid $22,000 Retained Earnings, December 31 $87,000
Required 1-b. Prepare the partial balance sheet for Blake Corporation at December 31.
BLAKE CORPORATION Partial Balance Sheet as of December 31 Assets Liabilities and Stockholders' Equity Current Assets: Current Liabilities: Cash $15,000 Accounts Payable $25,000 Accounts Receivable $20,000 Salaries Payable $5,000 Inventories $30,000 Total Current Liabilities $30,000 Prepaid Expenses $5,000 Long-term Liabilities: Total Current Assets $70,000 Notes Payable $40,000 Property, Plant, and Equipment: Stockholders' Equity: Land $30,000 Common Stock $435,000 Buildings and Equipment $400,000 Additional Paid-in Capital $174,000 Less: Accumulated Depreciation $(120,000) Retained Earnings $87,000 Treasury Stock $(22,000) Total Stockholders' Equity $674,000 Total Assets $380,000 Total Liabilities and Stockholders' Equity $704,000
Required 2. Evaluate Blake Corporation's dividend policy based on the information provided.
Blake Corporation paid $22,000 in dividends during the year, which is less than the net income of $39,000. This indicates that the company is retaining a portion of its earnings to reinvest in the business and finance future growth. The statement of retained earnings shows an increase in retained earnings from $70,000 to $87,000, which further supports this conclusion. Additionally, the company has authorized but not yet issued 71,000 shares of common stock, which provides flexibility for future financing options. Overall, Blake Corporation's dividend policy seems to prioritize reinvestment in the business and potential future growth over immediate payouts to shareholders.
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corporate sustainability, corporate governance and social
responsibility principles in the decision-making process(CLO
3)
Corporate sustainability, corporate governance, and social responsibility principles play a crucial role in the decision-making process of businesses.
Sustainability refers to the practice of meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. It is a holistic approach that considers environmental, social, and economic factors in decision-making processes. Sustainable practices aim to minimize negative impacts on the environment, promote social equity and justice, and ensure long-term economic viability.
Environmental sustainability focuses on preserving natural resources, reducing pollution, and protecting ecosystems. It involves embracing renewable energy sources, promoting energy efficiency, and adopting sustainable agricultural and manufacturing practices. Social sustainability emphasizes social equity, inclusivity, and community well-being. It involves promoting fair labor practices, supporting human rights, fostering social cohesion, and addressing issues such as poverty, inequality, and access to education and healthcare.
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fairlane company has an roa of 8.3 percent and a payout ratio of 35 percent. what is its internal growth rate?
The internal growth rate of Fairlane Company is 5.395%. Hence, option (C) is correct.
Given, Return on Assets (ROA) = 8.3 %Payout ratio = 35 %To find:
Formula: Internal Growth rate = (Return on Assets × Retention ratio)Or Internal Growth rate = ROA × (1 – Payout ratio)
Calculation: From the above formulas, Internal Growth rate = 8.3 % × (1 – 35 %) = 8.3 % × 0.65 = 5.395 %
Therefore, the internal growth rate of Fairlane Company is 5.395%. Hence, option (C) is correct.
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Linguistics question
Question 1
a. Draw the morphological structure tree for the word: miscommunications
b. Are there any inflectional affixes in the word above? If so, list them.
c. Are there any derivational affixes in the word above? If so, list them.
d. In the word above, what are the bases? List them.
a. The morphological structure tree for the word miscommunications is as follows:b. Yes, there are inflectional affixes in the word miscommunications.
Here are some examples of inflectional affixes in the word miscommunications: {s} plural {es} present tense {ed} past tense {ing} present participle.c. Yes, there are derivational affixes in the word miscommunications. Here are some examples of derivational affixes in the word miscommunications: {mis} {un} {ion} {ic} {ate}d. The bases in the word miscommunications are: {mis}, {communicate}, and {s}. Note that {mis} is a prefix and {s} is a suffix.Linguistics is the scientific study of language and its structure, including phonetics, phonology, morphology, syntax, semantics, and pragmatics. The word "miscommunications" is formed from three bases: {mis}, {communicate}, and {s}. It has inflectional affixes such as {s}, {es}, {ed}, and {ing}. Furthermore, it has derivational affixes such as {mis}, {un}, {ion}, {ic}, and {ate}.
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Ms.Taay is a franchise chain selling Ha Long bubble yogurt, a local specialty which is made of yogurt and warm pearls with coconut milk. Currently, their menu has 20 different flavors of yogurt, whose ingredients are plain yogurt and flavored syrup.
As this chain is opening many new stores every quarter, the chain’s managers try to find a way to optimize their production, aiming for a customer service level of 95%.
Assuming that weekly demand at a specific store for each flavor is independent and normally distributed with N(100, 144), while the replenishment lead time from the chain’s factory is one week.
How much safety stock will this store have to hold if the yogurt is flavored at the chain’s factory and held in inventory at the store as individual yogurt flavors?
How much safety stock will this store have to hold if the store holds plain yogurt and flavored syrups (supplied by the chain’s factory) separately and only mixes flavors on demand?
Which option may conclude a less quantity of safety stock? What is the gap of safety stock between these two alternatives?
The demand is independent and follows a normal distribution with N(100, 144).Hence, the standard deviation (σ) is the square root of the variance (144), i.e., 12.The maximum demand for a week can be 100 + 12 × 1.65 = 120.8.Let's calculate the safety stock when the yogurt is flavored at the chain’s factory and held in inventory at the store as individual yogurt flavors.
The service level (SL) is 95%, which means the probability of not stocking out in a week is 0.95.The Z-value corresponding to 0.95 probability is 1.65.The average weekly demand for one flavor is 100.The standard deviation is 12.Let's calculate the safety stock: Safety stock = Z-value × σ= 1.65 × 12= 19.8Therefore, the store will have to hold a safety stock of about 20 units. Let's calculate the safety stock when the store holds plain yogurt and flavored syrups (supplied by the chain’s factory) separately and only mixes flavors on demand.
The service level is 95%.The average weekly demand for one flavor is 100.The standard deviation is 12.Let's calculate the safety stock: Safety stock = Z-value × σ= 1.65 × 12= 19.8Therefore, the store will have to hold a safety stock of about 20 units. The option that concludes a less quantity of safety stock is holding plain yogurt and flavored syrups separately and only mixes flavors on demand. The gap of safety stock between these two alternatives is zero. The quantity of safety stock in both cases is about 20 units.
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Instruction: Answer ALL questions. Section A (25 marks) 1. From the following information, calculate the missing figures in each of the options below. No. Assets (RM) Liabilities (RM) Capital (RM) 67 891 a. 12 345 b. 98 765 54 321 C. 86 420 25 791 d. 91 823 20 394 c. 56 473 89 345 f. 34 678 78 569 87 564 34 567 86 531 34 500 67.967 34 567 76 985 23 789 k. 23 633 93 800 L 22 632 43 160 m. 92 819 76 543 n. 90 900 20 300 0. 79 345 12 123 (1 mark x 15 = 15 marks) 2. For each of the following business items identify the assets, liabilities and owner's equity. Furniture & Fittings Bank Capital Drawings Accounts payable Closing inventory Mortgage Overdraft Accounts receivable Cash (1 mark x 10 = 10 marks) h. i. į
The assets, liabilities, and owner's equity of the given business items are as follows: Furniture & Fittings Assets Accounts payable Liabilities Bank Cash Accounts receivable Closing inventory Overdraft Mortgage Capital Drawings.
From the given information, the missing figures are calculated as follows:a. 12 345Assets (RM) = 67 891 Liabilities (RM) = 45 546 Capital (RM) = 22 345b. 98 765Assets (RM) = 67 891 Liabilities (RM) = 10 222 Capital (RM) = 54 652c. 56 473Assets (RM) = 87 564 Liabilities (RM) = 34 567 Capital (RM) = 45 530d. 91 823Assets (RM) = 34 567 Liabilities (RM) = 25 791 Capital (RM) = 31 465f. 34 678Assets (RM) = 34 500 Liabilities (RM) = 20 394 Capital (RM) = 13 784k. 23 633Assets (RM) = 23 789 Liabilities (RM) = 67 967 Capital (RM) = 56 632L. 22 632Assets (RM) = 43 160 Liabilities (RM) = 34 567 Capital (RM) = 56 225m. 92 819Assets (RM) = 76 543 Liabilities (RM) = 34 567 Capital (RM) = 58 709n. 90 900Assets (RM) = 76 543 Liabilities (RM) = 20 300 Capital (RM) = 67 1570. 79 345Assets (RM) = 123 000 Liabilities (RM) = 43 654 Capital (RM) = 99 3462. The assets, liabilities, and owner's equity of the given business items are as follows: Furniture & Fittings Assets Accounts payable Liabilities Bank Cash Accounts receivable Closing inventory Overdraft Mortgage Capital Drawings.
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which document contains the rules and standards for representing a taxpayer?
The document that contains the rules and standards for representing a taxpayer is typically referred to as a "Power of Attorney" or "Authorization to Represent." It is a legal document that grants authority to an individual or entity to act on behalf of the taxpayer in matters related to their taxes.
In the United States, the Internal Revenue Service (IRS) uses Form 2848, "Power of Attorney and Declaration of Representative," to establish the representation authority. The taxpayer must complete and sign this form to authorize someone, such as a tax professional or attorney, to represent them before the IRS.
The Form 2848 includes information about the taxpayer, the representative(s) authorized to act on their behalf, and the specific tax matters for which representation is authorized. It outlines the rights and responsibilities of both the taxpayer and the representative, and it must be filed with the IRS to grant the representative the legal authority to represent the taxpayer.
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Indicative planning means that a) no compulsory targets are prepared for enterprises b) planners project probable trends in the economy c) compliance with the plan is purely voluntary d) all of the above. e) none of the above.
Planners project probable trends in the economy. The correct option is B. The planners use indicative planning as a means of guiding economic growth and development.
What is indicative planning?Indicative planning is a form of economic planning that is used to guide economic growth and development. It is also known as directional planning. In this type of planning, the government outlines broad objectives and targets for the economy and leaves it to the market forces to make decisions on how to meet these goals.
Indicative planning was first used in France in the 1960s and has been adopted by many other countries. It differs from the traditional command planning that was used in communist countries, where the government had total control over the economy and set production targets for enterprises.
Indicative planning allows enterprises to make their production decisions based on market signals, but within the framework of government targets and objectives. It is a more flexible approach to economic planning that takes into account the uncertainties and complexities of a market economy.
In indicative planning, planners project probable trends in the economy. They use economic models and forecasts to predict the future growth and development of the economy. These projections are used to set targets and objectives for the economy, which are communicated to enterprises. Compliance with the plan is voluntary, but enterprises are encouraged to follow the plan as it provides guidance on the direction of the economy. The plan is reviewed and adjusted periodically to take into account changes in the economy and new developments. The government provides incentives and subsidies to enterprises that meet the targets set out in the plan, which encourages compliance. Therefore, the correct option is B. planners project probable trends in the economy.
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Will give rate
How to get "597104.8" please provide formula.
Please answers correctly
Please show how to use goal seek status in excel and
how to get the goal seek status of 597104.8
Present Amount value Year 5 2000000 2676451.16 8 3000000 4781544.22 1600000 3219514.35 12 tal present value= 10677509.7 Year Present value Amount 1 597104.8 632931.056 2 597104.8 670906.92 3 597104.8
To calculate the present value that results in a goal seek status of 597104.8, you can use the following formula:
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value (597104.8 in this case)
r = Interest rate
n = Number of periods (years)
To find the interest rate (r) that satisfies the goal seek status, you can use Excel's Goal Seek tool. Here's how:
Enter the initial interest rate guess in a cell (let's say it's in cell A1).
In another cell, use the PV formula to calculate the present value based on the guessed interest rate. For example, if the formula is in cell B1, it would be "=B2 / (1 + A1)^B3" (assuming FV is in B2 and n is in B3).
Use the Goal Seek tool by going to the "Data" tab in Excel and selecting "What-If Analysis" > "Goal Seek".
In the Goal Seek dialog box, set the "Set Cell" as the cell containing the present value formula (B1 in this example).
Set the "To value" as the goal seek status value (597104.8).
Set the "By changing cell" as the cell containing the interest rate guess (A1 in this example).
Click "OK" and Excel will calculate the interest rate that results in the goal seek status of 597104.8.
Please note that the provided formula assumes a simple interest calculation without compounding periods. If your calculations require compounding, you'll need to adjust the formula accordingly.
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Suppose we know that in our economy, C = $20 + .8Y,
with everything expressed in trillions of dollars.
a) How did Keynes interpret
Keynes interpreted the equation C = $20 + 0.8Y as the consumption function in his theory of income and employment.
According to Keynesian economics, this equation represents the relationship between consumption (C) and income (Y) in an economy. Keynes believed that consumption is a function of income, meaning that as income increases, consumption also increases but at a smaller rate. The equation shows that consumption is influenced by autonomous consumption spending represented by the constant term $20, which is independent of income. The term 0.8Y represents the marginal propensity to consume (MPC), indicating that for every additional unit of income, 0.8 of it will be spent on consumption.
Keynes argued that consumption is a key driver of aggregate demand in an economy. When individuals spend a significant portion of their income on consumption, it stimulates economic activity and promotes employment. By analyzing the consumption function, Keynes aimed to understand the relationship between changes in income and changes in consumption, which is crucial for determining the overall level of economic activity and employment in an economy.
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The balance sheet for Blossom Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $2,900,000 Less: Discount on bonds payable 116,000 $2,784,000 Blossom decides to redeem these bonds at 103 after paying annual interest Prepare the journal entry to record the redemption on July 1, 2020
The balance sheet for Blossom Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $2,900,000 Less: Discount on bonds payable 116,000 $2,784,000. Blossom decides to redeem these bonds at 103 after paying annual interest. To prepare the journal entry to record the redemption on July 1, 2020, the following steps are to be followed:Step 1: Calculate the carrying value of the bond carrying value = face value of bond - discount carrying value = $2,900,000 - $116,000 = $2,784,000Step 2: Calculate the gain or loss on redemption of the bond redemption value = face value * redemption price redemption value = $2,900,000 * 1.03 = $2,987,000Gain or loss on redemption = redemption value - carrying value gain or loss on redemption = $2,987,000 - $2,784,000 = $203,000 (Gain)Step 3: Journal entry to record the redemption The journal entry to record the redemption of bonds payable is: DebitBonds payable $2,900,000 Less: Discount on bonds payable $116,000 Total debits $2,784,000CreditCash $2,987,000 Gain on redemption of bonds payable $203,000 Total credits $2,784,000Therefore, the journal entry to record the redemption on July 1, 2020 is:Bonds payable$2,900,000 Less: Discount on bonds payable $116,000Cash$2,987,000Gain on redemption of bonds payable $203,000.
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Current Attempt in Progress On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash for accounts payable due. 2. Collected $1,300 of accounts receivable. 3. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. 4. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October. 5. Declared and paid a $400 cash dividend. 6. Paid salaries $1,700, rent for September $900, and advertising expense $200. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank on a 6-month note payable.
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700.
During September, the following transactions occurred.1. Paid $2,900 cash for accounts payable due. The balance sheet of La Brava Veterinary Clinic as of August 31 can be summarized as: Assets | Amount Cash | $9,000Accounts Receivable | $1,700Supplies | $600Equipment | $6,000 Liabilities and Equity | Amount Accounts Payable | $3,600Common Stock | $13,000Retained Earnings | $700In the transaction on September 1, we paid $2,900 cash for accounts payable due. The balance sheet changes as follows: Assets | Amount Cash | $6,100 (9,000 - 2,900)Accounts Receivable | $1,700Supplies | $600Equipment | $6,000Liabilities and Equity | Amount Accounts Payable | $700 (3,600 - 2,900)Common Stock | $13,000Retained Earnings | $7002. Collected $1,300 of accounts receivable. As of September 2, the balance sheet is: Assets | Amount Cash | $7,400 (6,100 + 1,300)Accounts Receivable | $400 (1,700 - 1,300)Supplies | $600Equipment | $6,000Liabilities and Equity | Amount Accounts Payable | $700Common Stock | $13,000Retained Earnings | $7003. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. The cash payment for the additional equipment is $800. The balance on account is $1,300. As of September 3, the balance sheet is: Assets | Amount Cash | $6,600 (7,400 - 800)Accounts Receivable | $400Supplies | $600Equipment | $8,100 (6,000 + 2,100)Liabilities and Equity | Amount Accounts Payable | $2,000 (700 + 1,300)Common Stock | $13,000Retained Earnings | $7004. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October. As of September 4, the balance sheet is: Assets | Amount Cash | $9,100 (6,600 + 2,500)Accounts Receivable | $4,200 (400 + 2,500 + 1,300)Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000Common Stock | $13,000Retained Earnings | $1,200 (700 + 7,300 - 1,700 - 900 - 200 - 170)5. Declared and paid a $400 cash dividend. As of September 5, the balance sheet is: Assets | Amount Cash | $8,700 (9,100 - 400)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000 Common Stock | $13,000Retained Earnings | $800 (1,200 - 400)6. Paid salaries $1,700, rent for September $900, and advertising expense $200.As of September 6, the balance sheet is: Assets | Amount Cash | $5,900 (8,700 - 2,800)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000Common Stock | $13,000Retained Earnings | $900 (800 - 1,700 - 900 - 200 - 170)7. Incurred utilities expense for month on account $170.As of September 7, the balance sheet is: Assets | Amount Cash | $5,900Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,170 (2,000 + 170)Common Stock | $13,000Retained Earnings | $730 (900 - 170)8. Received $10,000 from Capital Bank on a 6-month note payable. As of September 8, the balance sheet is: Assets | Amount Cash | $15,900 (5,900 + 10,000)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,170Common Stock | $13,000Retained Earnings | $10,730 (730 + 10,000)
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Question 10 (5 points) Explain the outcome and legal principles derived by the following case law a. Macura V Northern Assurance Co. Ltd. (1925) b. Tiep Thi To V Australian Associated Motor Insurers L
Macura v Northern Assurance Co Ltd (1925) is a famous case law that focuses on the concept of "reasonable apprehension of physical harm." The case involves the circumstances under which the driver of a vehicle is regarded to have acted in the "reasonable apprehension of physical harm" and how that may be a reasonable explanation for the driver's actions.
In this case, the insured's policy's conditions necessitated the insurer's authorization before the insured used the vehicle to take any passenger other than those specified in the policy. The insured agreed to bring a passenger home who was not included in the list of permitted passengers, without seeking permission. When the vehicle struck a wall and killed the passenger, the insurer declined coverage. However, the court held that the insured had acted in reasonable apprehension of physical harm, and the insurer's refusal to cover the policy was deemed illegal. The court observed that reasonable apprehension of physical harm was a recognized legal principle and that the insured had acted in a manner that could be considered reasonable in the situation. In such instances, the insured's use of the car is deemed outside the policy's restrictions, and the insurer is bound to provide coverage.
Tiep Thi To v Australian Associated Motor Insurers Ltd (1989) is a well-known case that resulted in the creation of the "grey areas" doctrine. The key issue, in this case, was whether the plaintiff was a passenger or a member of the public for insurance purposes. A passenger is defined as a person carried in a car, while a member of the public is defined as any other individual who may be impacted by a car in a public location. The plaintiff was standing between two parked cars when she was struck by the defendant's car. The defendant was the passenger in a vehicle that had been parked in the same street as the plaintiff. The court held that the plaintiff was not a passenger in the defendant's vehicle and, therefore, not eligible for coverage under the defendant's policy. As a result of the case, the "grey areas" doctrine was developed, which determines whether a person is a passenger or a member of the public. The doctrine considers the facts of each case and distinguishes between an individual who is closely linked with a car and one who is not. In conclusion, the Macura v Northern Assurance Co Ltd case law outcome and the legal principle derived from it concerned the notion of reasonable apprehension of physical harm. On the other hand, Tiep Thi To v Australian Associated Motor Insurers Ltd case law outcome created the "grey areas" doctrine.
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a. Macura v Northern Assurance Co. Ltd. (1925):This case is concerned with the need for a party seeking indemnity to give notice to the indemnifier of any loss or liability.
Facts: Mr. Macura had a policy of insurance with Northern Assurance Co. Ltd. covering damage to his car. He got into an accident on the road as a result of someone else's negligence. He didn't inform Northern Assurance of the incident for 11 months because he thought the other driver's insurance would cover the damages. Later he claimed for the loss under the Northern Assurance policy, but the claim was refused because he had not informed them of the incident. Legal principles: There are two legal principles established by this case :Assurance companies are only required to indemnify an insured against losses that they are aware of. If an insured doesn't inform their insurer of an incident that might give rise to a claim under their policy, the insurer is not liable to indemnify them. b. Tiep Thi To v Australian Associated Motor Insurers: This case is concerned with the meaning of "use" of a motor vehicle for the purposes of the Motor Vehicles (Third Party Insurance) Act. Facts: Mr To had an accident in his car while it was parked on a public highway. His car rolled down the hill and collided with another vehicle. Legal principles: The legal principle established by this case is that: In order to fall within the provisions of the Motor Vehicles (Third Party Insurance) Act, a motor vehicle must be "used" on a public highway, and this must be in connection with the user's legal rights as a road user. A vehicle parked on a public highway is not considered to be "used" for the purposes of the Act.
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If Krugman is right, what is likely to happen to fast-growing countries in East Asia as they become wealthier?
According to Krugman, as fast-growing countries in East Asia become wealthier, they are likely to experience a slowdown in their growth rates.
This is because these countries will face diminishing returns to the inputs (such as labor and capital) that have been driving their growth in the past.In other words, the factors that have contributed to their rapid growth (such as labor, capital, and technology) will no longer be able to drive growth as efficiently as they did before. At this point, these countries will need to shift their focus to innovation and developing new technologies to continue growing.
In summary, as countries in East Asia become wealthier, their growth rates are likely to slow down due to diminishing returns to the inputs that have been driving their growth in the past. They will need to shift their focus to innovation and developing new technologies to continue growing.
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Assume that Kiya, Jun, and Lyle are the only buyers of bananas. Their inverse demand functions are: Kiya: p = 20 - QK Jun: p = 10 - Q1/2 Lyle: p = 5 - QL/4 where QK. QJ. and Q are the quantities demanded by Kiya, Jun, and Lyle, respectively, and p is the price of bananas. Suppose the seller of bananas does not have any costs, so the seller only cares about maximizing revenue. Because Kiya, Jun, and Lyle always shop together, the seller has to charge them all the same price for bananas. At the price that maximizes revenue, how many bananas will the seller sell?
The price that maximizes revenue is $5.28, and the seller will sell a total of 20.05 bananas.
Given that;
Kiya, Jun, and Lyle are the only buyers of bananas. Their inverse demand functions are:
Kiya: p = 20 - QK
Jun: p = 10 - Q1/2
Lyle: p = 5 - QL/4
where QK. QJ. and Q are the quantities demanded by Kiya, Jun, and Lyle, respectively, and p is the price of bananas.
Since the seller of bananas does not have any costs, the seller only cares about maximizing revenue. Because Kiya, Jun, and Lyle always shop together, the seller has to charge them all the same price for bananas.
The inverse demand curve that relates to the sum of individual demand curves is:
P = (20 - QK) + (10 - Q1/2) + (5 - QL/4)P = 35 - QK - Q1/2 - QL/4
For maximizing the revenue, differentiate the above equation with respect to quantity and equate it to zero:
dP/dQ = - QK- 1/2Q^(-1/2) - 1/4QL^(-3/4) = 0
By solving the above equation, we get QK = 16, Q1/2 = 4, and QL = 1.63.
Therefore, the price that maximizes revenue is $5.28, and the seller will sell a total of 20.05 bananas.
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"Monetary Policy and a Positive Supply Shock: Our monetary model consists of three equations, the Interest-Savings equation, the (Short Run) Phillips Curve, and an Interest Rate Rule, y = A - ar π = πᵉ +k(y – y*) r=r* +Φᵧ (y – y*) + Φπ (π – πᵀ) where y = output, y* = 'efficient' output, r = real interest rate, p* = real interest rate associated with ’efficient' output, π = inflation, πᵉ = expected inflation, πᵀ = target inflation. (b) In short-run: Is y > yₒ* or y < yₒ* Is y > y*n or y < Y*ₙ? (You can use equations or graphs.) (c) In long-run: Is y > yₒ* or y < yₒ* Is y > y*ₙ or y < y*ₙ? (You can use equations or graphs.) (d) In short-run: Is π > πᵉ or π < πᵉ ? Is π > π or π < πᵀ? (You can use equations or graphs.) (e) In long-run: Is π > πᵉ or π < πᵉ? Is π > πᵀ or π < πᵀ? (You can use equations or graphs."
To determine the answers to the given questions, let's analyze the equations and their implications.
(b) In the short run:
From the Phillips Curve equation, y > yₒ* or y < yₒ* depends on the sign of the coefficient 'a'. If 'a' is positive, then y < yₒ*; if 'a' is negative, then y > yₒ*.
Similarly, from the Interest Rate Rule equation, y > yn or y < yn depends on the sign of the coefficient Φᵧ. If Φᵧ is positive, then y < yn; if Φᵧ is negative, then y > yn.
(c) In the long run:
In the long run, the Phillips Curve becomes vertical at the natural rate of output, yₙ. Therefore, y will tend towards yₙ in the long run. So, y > yₒ* or y < yₒ* depends on the initial conditions and adjustments over time.
(d) In the short run:
From the Interest Rate Rule equation, π > πᵉ or π < πᵉ depends on the sign of the coefficient Φπ. If Φπ is positive, then π > πᵉ; if Φπ is negative, then π < πᵉ.
From the equation π = πᵉ + k(y – y*), π > π or π < πᵀ depends on the value of k and the deviation of y from y*.
(e) In the long run:
In the long run, the expected inflation, πᵉ, will adjust to the target inflation, πᵀ, and there will be no systematic deviation between π and πᵀ.
Note: Graphical analysis of these equations would provide a more visual representation and interpretation of the relationships between the variables and their equilibrium states.
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suppose you wanted to make domestic industries more competitive but did not want to alter aggregate income. Assuming now a fixed exchange rate, what policy or combination of policies should you pursue, according to the Mundell-Fleming model? a. Revaluation; b. Contractionary fiscal; c. Contractionary monetary; d. Devaluation; e. Expansionary fiscal; f. Expansionary monetary
To make domestic industries more competitive without altering aggregate income under a fixed exchange rate, the appropriate policy or combination of policies to pursue, according to the Mundell-Fleming model, would be a contractionary monetary policy.
In the Mundell-Fleming model, a fixed exchange rate regime implies that the country's central bank intervenes in the foreign exchange market to maintain a fixed value for its currency.
In this case, a contractionary monetary policy can be used to increase the competitiveness of domestic industries without affecting aggregate income.
By implementing a contractionary monetary policy, the central bank can reduce the money supply and increase interest rates. This leads to a decrease in domestic spending and consumption, which can help restrain aggregate demand and reduce inflationary pressures.
As a result, domestic prices and costs can become relatively lower compared to other countries, making domestic industries more competitive in international markets.
It is important to note that other policies, such as revaluation or devaluation, expansionary fiscal policy, or expansionary monetary policy, may have different effects on the economy and exchange rate.
However, in the context of wanting to enhance competitiveness without altering aggregate income under a fixed exchange rate, a contractionary monetary policy is the most suitable option as it directly affects the money supply and interest rates, leading to an adjustment in relative prices and promoting competitiveness.
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PART B 1. RedSweet Sdn Bhd produces custom made cupcakes for their customer. The manager is concern about the rise in the price of flour and wishes to set new stock control levels. He has provided you
RedSweet Sdn Bhd is a company that produces custom-made cupcakes. The manager is concerned about the increase in the price of flour and has asked for new stock control levels to be set.
RedSweet Sdn Bhd is facing the problem of rising flour prices. As a result, the company needs to take measures to ensure that they can still produce cupcakes at a reasonable cost without sacrificing quality.
One possible solution is to set new stock control levels, which would involve managing their inventory more efficiently. The company could purchase flour in bulk to take advantage of discounts that suppliers offer, while also minimizing waste by using only what they need.
Additionally, they could monitor their inventory levels closely to ensure that they order supplies before they run out. By doing so, they can reduce the risk of having to purchase supplies at higher prices due to a shortage of flour.
Ultimately, by setting new stock control levels, RedSweet Sdn Bhd can maintain their profit margins while still offering their customers high-quality custom-made cupcakes.
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Bea has the following capital gains and losses this year. 57 24 LTCG $15,000 STCG $15,000 CO 13 LTCL $10,000 STCL $ 5,000 17 50 What are Bea's net long-term and short-term gains?
Net Long-term gains are $44,000.Net Short-term gains are $19,000.
The following are Bea's capital gains and losses this year:57 24 LTCG $15,000 STCG $15,000 CO 13 LTCL $10,000 STCL $5,000 17 50.
We'll compute for the net long-term and short-term gains of Bea.
How to calculate for Bea's net long-term and short-term gains
There are a few ways to calculate a taxpayer's net capital gains.
The most straightforward way is to subtract capital losses from capital gains.
Gains and losses should be split into long-term and short-term categories before subtracting losses from gains because long-term gains are taxed at lower rates than short-term gains.
The short-term gain or loss is calculated by subtracting the total short-term losses from the total short-term gains.
Long-term gain: LTCG = 57, and LTC losses = 13. Net Long-term gains = 57 - 13 = 44. Net Long-term gains are $44,000.Short-term gain: STCG = 24, and ST losses = 5. Net Short-term gains = 24 - 5 = 19.
Net Short-term gains are $19,000.
Answer: Net Long-term gains are $44,000.Net Short-term gains are $19,000.
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Firm X has a marginal abatement cost of $2 per ton of toxic waste and firm Y has a marginal abatement cost of $4 per ton of toxic waste. Is this a cost-effective situation? Yes It depends on how toxic the waste is Yes as long as both firms are abating equal amounts No
No, this is not a cost-effective situation. In a cost-effective situation, firms should undertake abatement activities where the marginal abatement cost is the lowest.
In this case, Firm X has a lower marginal abatement cost of $2 per ton compared to Firm Y's cost of $4 per ton. Therefore, it would be more cost-effective for Firm X to undertake more abatement activities compared to Firm Y.
Yes, this is a cost-effective situation. Firm X has a lower marginal abatement cost ($2 per ton) compared to Firm Y ($4 per ton). In a cost-effective scenario, firms with lower abatement costs should take on a larger share of the abatement efforts to achieve the same level of pollution reduction at a lower overall cost. Therefore, if both firms are abating equal amounts of toxic waste, it indicates that the abatement efforts are allocated efficiently based on their respective marginal abatement costs.
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the government's ability to coerce can enhance economic efficiency by:
The government's ability to coerce can enhance economic efficiency by:
Enforcing property rights: The government's coercive power allows it to protect and enforce property rights. This ensures that individuals and businesses have legal ownership and control over their assets, which promotes investment, innovation, and economic growth. By preventing theft, fraud, and unauthorized use of property, the government creates a more secure and predictable economic environment.
Regulating and correcting market failures: Market failures can occur due to externalities, imperfect information, monopoly power, or public goods. The government can use its coercive power to regulate markets and correct these failures. For example, imposing regulations on pollution to internalize external costs, enforcing antitrust laws to prevent monopolistic behavior, or providing public goods and services that the market may not adequately provide.
Establishing and enforcing contracts: Coercive power enables the government to establish legal frameworks for contracts and enforce their terms. This ensures that parties can rely on the fulfillment of contractual obligations, which facilitates trade and economic transactions. By providing a reliable legal system, the government reduces transaction costs and promotes economic efficiency.
Reducing asymmetric information: Asymmetric information occurs when one party has more information than the other in a transaction. The government can use coercive power to enforce disclosure requirements, consumer protection laws, and regulations that reduce information asymmetry. By enhancing transparency and promoting fair competition, the government improves market efficiency.
It's important to note that while the government's coercive power can enhance economic efficiency in certain situations, it needs to be exercised judiciously and with appropriate checks and balances to prevent abuses and unintended consequences.
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1. A P110,000 chemical plant had an estimated life of 6 years and a projected scrap value of P10,000. After 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P150,000 if a depreciation reserved have been maintained during its 3 years of operation by: (30 points) a. Straight line method b. Sinking fund method at 6% annual compound interest
Straight line method Straight line method refers to a depreciation method in which the cost of an asset is uniformly distributed over its estimated useful life.
For example, a machine that is purchased for $10,000 and has a useful life of 5 years will be depreciated at the rate of $2,000 per year, assuming that it has no residual value or scrap value. Straight-line depreciation is one of the simplest and most common methods of depreciation used in accounting, finance, and business. The straight-line depreciation formula is as follows: Annual depreciation expense = (Cost of the asset – Residual value) / Useful lifeFor the given chemical plant, The cost of the plant was P110,000.
Using the straight-line method, the total depreciation expense for the plant over 3 years would be P50,000. If the plant had not been destroyed and a depreciation reserve had been maintained during the three years of operation, the balance of the reserve at the end of year 3 would be P50,000. Therefore, the money required to put up a new plant costing P150,000 would be P100,000.b) Using the sinking fund method at 6% annual compound interest, the amount set aside at the end of year 3 would be P107,072. If the plant had not been destroyed and a depreciation reserve had been maintained during the three years of operation, the balance of the reserve at the end of year 3 would be P107,072. Therefore, the money required to put up a new plant costing P150,000 would be P42,928.
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Drew is the president of Lotus Corporation (Lotus). Drew decided to have Lotus manufacture large, non-fuel-efficient sport
utility vehicles (SUVs) just before gasoline prices rose dramatically. As a result, Lotus lost a significant percentage of its
automotive market share, Lotus shareholders want to sue Drew for his bad decision that cost them millions of dollars. However,
Drew made a reasonable investigation before making this decision, he had a rational basis for it, and he had no conflicts of
interest regarding this decision. Which of the following is the most likely outcome if the shareholders file a lawsuit against
Drew?
A- Drew will not be held liable, since corporate presidents have absolute immunity from liability for decisions they made in the ordinary course of
business
B- Drew will be held liable under the vicarious liability rule
C Drew will not be held liable under the business judgment rule
D- Drew will be held liable under the ultra vires rule.
Cyrano hired Solomon to act as his sales agent in his jewelry store. Cyrano authorized Solomon actual express authority to sell
items of jewelry up to $1,000 without checking with him: however. If the price was over $1,000, Solomon was to check with
Cyrano before making a sale. One day, a customer wanted to buy a necklace for $1,500 and Solomon sold it to her without first
checking with Cyrano. When Cyrano learned of this, he was upset because the price was a mistake it; should have been marked
at $3,000. Cyrano wants the customer to return the necklace. Is the customer required to return the necklace in this case?
a) No because Solomon did have apparent authority to sell that item
b) No, because Solomon did have implied authority to sell that item
c)Yes, because Solomon did not have express authority to sell that item
d) Yes, because Solomon did not have Implied authority to sell that item
For the first scenario with Lotus Corporation and Drew, the most likely outcome if shareholders file a lawsuit against Drew would be:
C- Drew will not be held liable under the business judgment rule.
The business judgment rule protects corporate officers and directors from personal liability for their decisions as long as they act in good faith, exercise reasonable care, and make decisions in the best interest of the company. In this case, Drew made a reasonable investigation, had a rational basis for his decision, and had no conflicts of interest. Therefore, he would likely be protected under the business judgment rule, and the shareholders' lawsuit would not hold him personally liable.
For the second scenario with Cyrano and Solomon, the customer would be required to return the necklace in this case because:
c) Yes, because Solomon did not have express authority to sell that item.
According to the given information, Cyrano only authorized Solomon to sell items of jewelry up to $1,000 without checking with him. Since the customer wanted to buy a necklace for $1,500, Solomon exceeded his express authority by not checking with Cyrano before making the sale. Therefore, the customer is required to return the necklace as the sale was made without the necessary authorization.
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