1. This case primarily involves an implied contract, where things may not have been written down but the actions by both sides show there was an agreement.
2. Implied contract may also be refereed to as an implied-in-fact contract because the facts (not written documents) show there was an agreement.
3. The court would rely on the conduct of the parties. Since there isn't a written agreement, they look at the actions people took to see if they behaved as if they were in a contract.
4. Implied contracts do not require an agreement between the parties. Someone may be operating on the assumption of an implied contract and the other person disagrees that they acted in a way that implied a contract, but it is their actions that matter not how they felt about the agreement.
5. To determine if a contract exists the court will look at: furnished a good or service, expected to be paid, knew or should have known about that expectation, had a chance to reject the goods or services
Answer:
The correct answer is option c.
Explanation:
A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive.
The price falls to $18, and the firm makes whatever adjustments are necessary to maximize its profit at the lower price.
A competitive firm will produce at the point where the marginal cost is equal to price. When the price is lowered the firm will produce at a point with lower marginal cost.
It will thus produce lesser output than what it was producing earlier. So the quantity of output will be lower than previously.
Answer:
B
Explanation:
The value of tax shield is simply given as corporate tax rate times the cost of debt times the market value of debt.
If the debt is constant and perpetual, the company’s tax shield depends only on the corporate tax rate and the value of debt. Then the present value of tax shield equals the discounted value of debt
Answer:
137.89 days
Explanation:
Days' sales receivables = (Accounts Receivables / Net Credit Sales) *365
Accounts Receivables = $ 680,000
Net Credit Sales = $ 1,800,000
Days' sales receivables = $680,000 / $ 1,800,000 * 360 days
=137.88888
= 137.89 days
The days' sales in receivables is 137.89 days
