Answer:
Tim imposes a Negative externality on his neighbor in the form of noise pollution.
The command-and-control policy might the landlord impose is : a) A rule that music could not be played above a certain decibel level
(True)According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
Explanation:
As given ,
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume.
In this case, Tim imposes a Negative externality on his neighbor in the form of noise pollution.
Because Tim's rock 'n' roll music disturb Brian and it effects negatively because due to Tim's music , Brian is unable to listen opera properly
Now,
The command-and-control policy might the landlord impose is :
a) A rule that music could not be played above a certain decibel level
Now,
If the landlord lets the tenants do whatever they want.
According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
It is True
Because if transaction cost is low , then Tim can pay compensation to Brian for high volume of music . But if transaction cost is high then they can not do any negotiation.
Answer:
Requirement 1 :
Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the invested company.
Requirement 2 :
In the books of Excel Motors:
[ Kindly find the attachment ]
Answer:
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Explanation:
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Answer:
d) Profit center
Explanation:
A profit center is a separate unit of a firm which incurs costs and generates revenue for the company. It is the division of the company that is in charge of earning money and creating sales. It is therefore a separate segment of the company which use of its resources to bring revenue for the company, and profits and losses of the division are estimated separately from other segments.
The importance of the profit center is that it makes it easy to identify the division within a company that least profitable and most profitable.
Therefore, the sales department of Mega Inc. which sells the various models of blankets it produces is a profit center.
I wish all the best.
Answer:
Bonus liability = 7% x $3,500,000
Bonus liability = $245,000
Explanation:
Since the pre-bonus net income is $3,500,000 and the bonus is 7% of the pre-bonus net income, then, the estimated bonus liability is 7% x $3,500,000 = $245,000.
