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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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A carpenter sells _______ , whereas an automobile manufacturer sells _______.

Scorpion4ik [409]

Basic Answer

a carpenter sells furniture, whereas an automobile manufacturer sells cars.

Bussiness Answer

a carpenter sells style , whereas an automobile manufacturer sells mobility.

5 0

3 years ago

Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made

In-s [12.5K]

Answer:

Present value of the cash inflow= $69,086.97

Explanation:

An annuity is a series of annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.

To work out the the present value of a growing annuity, we use the formula:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow - 20,000

r- rate of return - 8%

g- growth rate - 3%

n- number of years- 4

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.

A/(r-g) = 20,000/(0.08-0.03) = $400,000

(1- (1+g/1+r)^n) = 1 -(1.03/1.08)^4 =0.17271

PV = A/(r-g) × (1- (1+g/1+r)^n) =400,000 × 0.17271 =69,086.97

Present value of the cash inflow = $69,086.97

8 0

3 years ago

When the lorillard tobacco company places ads discouraging teenagers from smoking, they are using which type of institutional ad

Aleksandr-060686 [28]

This is a de-marketing strategy through ads, which are assumed to be digital ads. The assumption is that the digital ad would reach the target audience of teenagers to discourage smoking. This type of marketing campaign shows the tobacco company in a 'responsible' light to the consumer. By discouraging underage use, the consumer can assume that this must be a good company and is honest in their marketing.

3 0

3 years ago

The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by

Anestetic [448]

Answer:

$607,250 outflow

Explanation:

Net Working Capital is the amount of money needed to maintain operations on a day to day basis.

Net Working Capital = Current Assets - Current Liabilities

where,

Current Assets are calculated as :

Inventory $216,000

Accounts Receivable ($525,000 x 1.09) $575,250

Total $788,250

and

Current Liabilities = $181,000

therefore,

Net Working Capital = $788,250 - $181,000 = $607,250

Conclusion

The project's initial cash flow for net working capital is $607,250 outflow.

5 0

2 years ago

A store manager must decide how many rug cleaners to rent to customers. The manager estimates that the first would yield $200 a

Harrizon [31]

Answer:

The store manager must decide to buy 3

Explanation:

Given that:

The first: $200 a year
The second $150
The third $75,
The fourth $50
Interest rate is 12 percent
Investment: $500

As we know that the rate of return will be: Income / Investment

So the rate of return of:

The first: $200 / $500 = 0.4 = 40%
The second $150 / $500 = 0,3 = 30%
The third $75 / $500 = 0.15 = 15%
The fourth $50 / $500 = 0.1 = 10%

Only three rug cleaners have the rate of return greater than the interest rate so the store manager must decide to buy 3

5 0

3 years ago