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3 years ago

An agent is authorized to act on behalf of a principal in doing business with third parties. True False

Business

1 answer:

bonufazy [111]3 years ago

8 0

Answer:

The statement is: True.

Explanation:

In making business relationships, an agent acts as a third party that is legally authorized to establish businesses for one of the entities involved. The entity that uses the agent as an intermediary is called the principal. The agent must follow the principal's instructions avoiding to be biased by self-interest.

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Which of the following explanations argues that the Great Recession resulted from asset-price bubbles caused by euphoria and deb

ASHA 777 [7]

Answer:

Minsky Explanation

Explanation:

Based on the information provided within the question it can be said that the explanation that makes this statement is the Minsky Explanation. Which aside from arguing this, it basically states that reckless speculation is not able to sustain a bullish period and a sudden decline in market sentiment ultimately leads to a market crash every time.

6 0

3 years ago

Managers must be prepared to modify their strategy except when:

pishuonlain [190]

Answer: rivals announce their monthly profit margins in public.

Explanation:

Strategies are the actions or plans which are put in place by a company in order to have competitive edge over its rivals and also achieve the organization objectives.

Managers must modify their strategies when:

• changing circumstances affect performance and the desire to improve the current strategy.

• rivals make or adjust moves in the market due to the shifting needs of buyers.

• encountering stagnating market conditions and increasingly restrictive new customer acquisition opportunities.

• evidence is mounting that the current strategy is becoming less effective.

The last option isn't necessary in order to modify their strategies. Rivals announcing their monthly profit margins in public isn't enough reason for a company to alter its strategies.

7 0

3 years ago

__________ is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor

grigory [225]

Mediation<span> is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor dispute or achieve a mutually acceptable labor-management agreement.

Mediation is common in any disagreement when needing to come to a conclusion for an on-going issue. It's beneficial to have a mediator who is a third party to advocate and </span>clarify points each side is making. This helps facilitate without preference for both labor and management to agree/come to terms with an idea, issue or advancement they are facing.

7 0

3 years ago

(Bond valuation) You are examining three bonds with a par value of $1 comma 000 (you receive $1 comma 000 at maturity) and

Anna71 [15]

Answer:

Bond A, 5 years to maturity, semiannual coupons, 8%

Bond B, 10 years to maturity, annual coupon, 8%

Bond C, 15 years to maturity, semiannual coupon, 8%

a) market rate 8% semiannual

Bonds A and C will be worth $1,000 (par value)

price of bond B:

effective interest rate = 1.04² - 1 = 8.16%
PV of face value = $1,000 / 1.04²⁰ = $456.39
PV of coupon payments = $80 x 6.66192 (PV ordinary annuity factor, 8.16%, 10 periods) = $532.95

market price = $989.34

b) price of bond A:

PV of face value = $1,000 / 1.025¹⁰ = $781.98

PV of coupon payments = $40 x 8.75206 (PV ordinary annuity factor, 2.5%, 10 periods) = $350.08

market price = $1,132.06

price of bond B:

effective interest rate = 1.025² - 1 = 5.0625%
PV of face value = $1,000 / 1.025²⁰ = $610.27
PV of coupon payments = $80 x 7.69817 (PV ordinary annuity factor, 5.0625%, 10 periods) = $615.85

market price = $1,226.12

price of bond C:

PV of face value = $1,000 / 1.025³⁰ = $476.74

PV of coupon payments = $40 x 20.93029 (PV ordinary annuity factor, 2.5%, 30 periods) = $837.21

market price = $1,313.95

c) price of bond A:

PV of face value = $1,000 / 1.075¹⁰ = $485.19

PV of coupon payments = $40 x 6.86408 (PV ordinary annuity factor, 7.5%, 10 periods) = $274.56

market price = $759.75

price of bond B:

effective interest rate = 1.075² - 1 = 15.5625%
PV of face value = $1,000 / 1.075²⁰ = $235.41
PV of coupon payments = $80 x 4.91292 (PV ordinary annuity factor, 15.5625%, 10 periods) = $393.03

market price = $628.44

price of bond C:

PV of face value = $1,000 / 1.075³⁰ = $114.22

PV of coupon payments = $40 x 11.81039 (PV ordinary annuity factor, 7.5%, 30 periods) = $472.42

market price = $586.64

d) If the market rate is lower than the coupon rate, then the bonds will sell at a premium. The longer the maturity date, the larger the variations in market price due to different interest rates. E.g. the 15 year bond is more affected than the 5 year bond.

7 0

3 years ago

Callaway Golf Co. leases telecommunication equipment from Photon Company. Assume the following data for equipment lease form Pho

inessss [21]

Answer:

This lease is regarded and classified as Capital lease.

Explanation:

This lease is regarded and classified as Capital lease.

Here, Callaway Golf Co. is the body financing the leased asset but the right ownership is with Photon Company.

Now; the present value of future payment is calculated as:

Present value of future payment =[PVA 6%,5 × Annual payment ]+[PVF 6%,5 × Residual value]

=[4.46511 × 31000] +[0.74726 × 15500]

= 138418.27+ 11582.53

= 150000

However the present value of minimum lease payment is equal or more than 90% fair market value ,as such we therefore conclude that this lease is a capital lease.

3 0

3 years ago