Answer: The overall price level increased.
Explanation: The rise in the overall price level is termed as inflation. From the information we can see that the average price of the three goods in 2015 was $7.50. A year later, the average price changed to $7.58.
Therefore, the overall price level rose as the average price level increased from $7.50 to $7.58.
Answer:
A. Debit internet expense $200 and credit prepaid internet service $200.
Explanation:
On December 31 total expense of 3 months has been accrued and it should be recorded on the period end as per accrual basis and the balance should be transferred from prepaid internet service account to internet service expense account.
Accrued Internet Expense for the period = (800/12) x 3 = $200
Internet Expense should be debited by $200 in respect to the internet expense accrued during the period and prepaid internet service account should be credited to transfer the balance.
Answer:
Gray Market.
Explanation:
Gray market refers to unauthorized marketing or trade. In business, the term gray (or grey) market is used to define the trading of goods and products that have been done unofficially, which means that has not been permitted officially. It may be legal but not official. It is also known as the over-the-counter market. In simple terms, when a good or product is sold without the permission of the brand owner, it is known as the grey market.
<u>In the given case, the trading of Japanese tractors is unauthorized as they are sold without any authorized channels in the U.S. market</u>.
Thus the correct answer is a grey market.
Answer: The correct answer is D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Explanation: A principal in the context of a business is the owner of the business which in most cases are the shareholders. While the agents are those employed or hired to engage in the day to day activities of the business.
The principal most often aims to maximise shareholders wealth. Principal- agent problem may arise where the agent s of the business put their interests as priority as against the interests of the principal. Such interests of the agents may be to earn bonuses even if it would jeopardize the growth of the organisation.This is an ineffective way of running an organization.
Answer:
d. strategic alliance.
Explanation:
A strategic alliance -
It is the practice between any two companies , which gives both of them some mutual profit by working on a common project , is known as a strategic alliance .
The idea behind starting a strategic alliance is to improve or expand the company in the upcoming market , this can be a short term or a long term agreement plan .
This agreement tends to benefit both the company .