Answer:
Answer is " Supervening Event"
The manufacturer or seller is not liable if a product is materially altered or modified after it leaves the seller's possession and the alteration or modification causes an injury. Such alteration or modification is called a " <u>Supervening </u>event
Explanation:
It is also knows as Negligence
Answer:
A) Jane recognizes no gain; Walt recognizes a gain of $50,000.
Explanation:
§ 351 allows individuals or businesses tax free transfers to controlled corporations. In other words, Jane and Walt can transfer assets to form Yellow Corporation without recognizing any gain or loss.
Since Walt received some money from this transaction, that must be considered a gain since it is not included under § 351.
Answer:
csh used for operatng activities 1,600
Explanation:
the operatng activities will be the cash outflow for business day-to-day operation
the rent is an operational cost, as the rented space is used daily for the business.
the workers salaries are operating activities, they work and provide their work to make the business operate
The equipment is an investment activity. the equipment will generate cash over the course of his useful life, is an investing activity. It decreases cash now, to increases in the future.
The Loan is a financing activity, the company is paying a loan which in a previous period provide cash.
So, total operating activities:
rent 500
salaries 1,100
total 1,600
Answer: Before Patent Expired - Monopoly Market
After Patent Expired - Perfect Competition
Explanation:
Fountain Plus had a patent on Xtrafresh, this means that they alone had legal rights to produce it and others could not produce it without their permission. This gave rise to a Monopoly as there was no competition. Fountain Fresh was able to make ECONOMIC PROFIT because they were able to charge at a price higher than both the Marginal Cost and the marginal revenue of Xtrafresh which were equal to maximize output.
When the Patent expired however and other companies could come into the trade,they started competing in the case of Xtrafresh. This competition meant that Fountain Plus could no longer keep the price at a level above Marginal cost as the other firms would simply charge lower. This led to a situation where the production of Xtrafresh and it's demand became Economically Efficient at Equilibrium. What this means is that Firms had to sell at a price determined by the market and had to make sure that this price equaled their Marginal Revenue and Marginal Cost so therefore no firm was able to make ECONOMIC PROFIT any longer.
