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deff fn [24]
3 years ago
7

In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the

land for $100,000 in 1992. When she acquired the option in 1985, the land was worth $120,000. In 1992, it is worth $110,000. Should Alice exercise the option and pay $100,000 for the land?
Business
1 answer:
nata0808 [166]3 years ago
8 0

Answer:

Alice should exercise the option and pay $100,000 for the land.

Explanation:

As Alice has paid $20,000 for the option to acquire the land of ten acres.

In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.

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How could addressing market failure lead to a more sustainable future?
Lunna [17]
Addressing marketing failure is a way of having to know the causes of this failure and to be able to determine the better ways of solving it and to prevent it from happening it again, by this, in the future, they will be able to produce a more sustainable and stronger one.
7 0
3 years ago
Business cycles are best defined as fluctuation in aggregate economic activity in which :a. the decisions of businesses are the
ludmilkaskok [199]

Answer: b. many economic activities expand and contract together in a recurring—but not periodic—fashion

Explanation:

The Business Cycle refers indeed to fluctuations in the business cycle related closely with the rise and fall in production output of goods and services in an economy.

It come with stages being Expansion, Peak, Recession, Depression, Trough, and Recovery. What is most interesting is that the movers behind the business cycle are not a singular entity but rather a series of Economic activities that are interconnected and move together. This is why some activities herald stages in the Business Cycle while some follow it. But they all have a role to play.

It is also very important to note that this is NOT a periodic occurence because it doesn't happen per period and neither can it be predicted but it happens. It is Recurrent but not periodic in other words.

7 0
3 years ago
A sustaining innovation is one that initially provides a lower level of performance than the marketplace has grown to accept. Tr
dezoksy [38]

Answer:

False

Explanation:

A sustaining innovation improves existing products. It does not create new markets or value markets, but develops existing ones with better value, allowing companies to compete against each other’s sustaining improvements.  A sustaining innovation targets demanding, high-end customers with better performance than what was previously available. Some sustaining innovations are the incremental year-by-year improvements that all good companies grind out. Other sustaining innovations are breakthrough, leapfrog-beyond-the-competition products. It doesn’t matter how technologically difficult the innovation is, however: The established competitors almost always win the battles of sustaining technology. Because this strategy entails making a better product that they can sell for higher profit margins to their best customers, the established competitors have powerful motivations to fight sustaining battles. And they have the resources to win.

3 0
4 years ago
If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value
marin [14]

Answer:

Explanation:

If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt -equity ratio for Luther in 2006 is closest to ________.

A) 3.45 B) 1.72 C) 0.86 D) 2.41

B) D / E = Total debt / Total equity

Total Debt = Notes payable (10.5) + Current maturities of long-term debt (39.6) + Long-term debt (231.3 ) = 281.4 million

Total equity = 10.2 × $16 = $163.2, so D / E = $281.4 / $163.2 = 1.72

3 0
3 years ago
If a family spends its entire budget in a given time frame, the family can afford either 85 cans of vegetables or 45 frozen pizz
Marianna [84]

Answer: 0.52

Explanation:

Opportunity cost is the benefit that is obtained from a good or from an activity  is foregone by choosing some other alternative.

It was given that a family spends its entire budget either on vegetables or frozen pizzas.

So, the opportunity cost of a can of vegetables = \frac{45}{85}

                                                                                      = 0.5294 units of frozen pizzas

This means that opportunity cost of spending on a can of vegetables is 0.52 units of frozen pizzas.

5 0
3 years ago
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