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vovangra [49]
3 years ago
12

You want to determine whether there is a lemons problem in the market for​ single-engine airplanes. Can you use any of the follo

wing information to help answer this​ question? If​ so, how? a. Repair rates for​ original-owner planes versus planes that have been resold A. No. The information would only be useful if the repair rates varied across different models of airplanes instead of original owner versus resold planes. B. Yes. If repair rates are higher for​ original-owner planes, this would be an indication of a lemons problem. C. Yes. If repair rates are higher for planes that have been​ resold, this would be an indication of a lemons problem. D. No. Repair rates are a poor indicator of the quality of an airplane as planes require frequent repairs.
Business
1 answer:
Andreas93 [3]3 years ago
3 0

Answer:

C. Yes. If repair rates are higher for planes that have been​ resold, this would be an indication of a lemons problem

Explanation:

Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.

Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.

Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.

Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.

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When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as bootstrapping.

<h3>What is bootstrapping?</h3>

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1 year ago
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified
daser333 [38]

The answer is:<span>
"Trial Balance"

The full sentence will be as follow:
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a trial balance.
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3 years ago
Madison Inc. reported sales of $1,000,000, a debit balance in Accounts Receivable of $80,000, and a credit balance of $5,000 in
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Answer:

Accounts Receivable  $80,000,

Bad debt losses of 1% of credit sales= 1% * $ 80,000= $ 800

Allowance for Doubtful Accounts $5,000 credit

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Allowance for Doubtful Accounts $4,200 credit

Two entries will be required

For recording Bad debts Expense

Bad Debts Expense $ 800 Dr

Allowance for Doubtful Accounts $ 800 credit

Adjusting Entry at year end.

Allowance for Doubtful Accounts $ 800 Debit

Account Receivables                   $ 800 Credit

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Long-term product or b
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Answer:

His four dimension are power distance, individualism vs collectivism, uncertainty avoidance, and masculinity vs femininity.

Explanation:

  • The theory of the cultural dimensions given by the Hofstede expresses the cross-culture communication that takes place within the organization and they are associated with the values on the society.  As cultures differs managerial practices also change.
  • The power distance is the first dimension which states that the members arrange themselves in a hierarchy and those who are less powerful are in a society of acceptance and Uncertainty avoidance is the dimension that describes the extent to which the society is at ease with the risks.
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