If three more restaurants opened in a small town where only four restaurants were open for business originally then The Restaurants would form a cartel in the town.
<u>Explanation:</u>
In such a situation the restaurant would preferably form a cartel. A Cartel is an association of various firms. This association is formed to keep the prices at a higher level. When a cartel is formed it restricts competition.
Cartel is formed with the mutual understanding of all the firms. The existence of cartels negatively affects the consumers, as they have to pay higher prices and cannot afford to bargain as the price will be determined by all the concerns collectively. It might result in limited supply and more demand which will result in price to increase.
Answer:
This is false. The TV network is able to limit how often commercials and advertisements are played on their network channel.
Answer:
Explanation:
The net book value of the property(land and building) at the end of year 2
Building(89,000 + 7,000 + 16,000) 112,000
Less; Depreciation for 2 years(10,200*2) (20,400) 91,600
Land(107,000 + 3,000) 110,000
Net book value of property 201,600
Answer: Understated and Overstated
Explanation:
Cost of good sold is the addition of Opening stock to the purchases and subtracting closing stock, the omission of $10,000 will reduce it. Invariably a reduction in cost of sales will overstate income.
Answer:
The right approach will be Option A.
Explanation:
- A third party that manages a deal between such a company and investors seems to be an intermediary. Throughout the indirect funding of companies, bankers act as an intermediary role.
- Direct financing covers arrangements that happen by capital markets, marketplaces where certain lenders as well as owners specifically lend borrowers everyone's investments.
- Companies offered lower tax rates to savings accounts than borrowers are paid.
As they are not connected to the situation, the other two aren't right. So, choice A is appropriate.
