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Marianna [84]
3 years ago
15

Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality. These

warranties help reduce the chance of what occurring?
A. Negative externalities.B. Adverse selection.C. Spillover benefits.D. Moral hazard.
Business
1 answer:
NISA [10]3 years ago
5 0

Answer:  

Adverse selection

                         

Explanation:

Adverse selection typically refers to such a circumstance when sellers possess knowledge that customers just don't have, about some type of quality of products — in other terms, it is a method of leveraging asymmetric data.

In other words, Asymmetric information, often referred to as intelligence loss, occurs when any group has better knowledge of data than any of the other group.

Thus, we can conclude that the warranty is given to ensure customers that nothing has been hidden from them.

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Bay Manufacturing Co. purchased a 3-month U.S. Treasury bill. In preparing Bay's statement of cash flows, this purchase would:A.
Lesechka [4]

Answer:

A. have no effect.

Explanation:

The US Treasury Bill was purchased at short-term

So it would not affect the company's cash balance.

The rule for short-term invstment is to have litle risk

and a mature of less than 90 days

the US TB fullfil both, it has no risk and matures within 90 days It is considered a cash equivalent.

7 0
3 years ago
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides
Ann [662]

Answer:

Matching the correct global market entry strategy with:

1. Moodmatcher lipstick  = b. Direct Exporting

2. Boeing  = b. Direct Exporting

3. Yoplait  = d. Franchising

4. McDonald's = d. Franchising

Explanation:

a) Global market entry strategies;

a. Indirect Exporting

b. Direct Exporting

c. Licensing

d. Franchising

e. Joint Venture

f. Direct Investment

Most of the globalized entities enter the global market space through direct exports to consumer countries.  Some others engage in licensing and franchising, joint venture and indirect exports of their products and services to non-domestic countries.  Huge revenues are earned through global trades.  Some companies like MTN headquartered in South Africa earn more revenue in foreign markets than in their domestic markets.

6 0
3 years ago
The following budget information is available for the Arch Company for January Year 2: Sales $ 860,000 Cost of goods sold 540,00
igomit [66]

Answer and Explanation:

The computation of the total budgeted selling and administrative expenses is shown below;

Utilities expense $2,800

Administrative salaries $100,000

Sales commissions 5 % of sales i.e. 5% of $860,000  $43,000

Advertising $20,000

Depreciation on store equipment $50,000

Rent on administration building $60,000

Miscellaneous administrative expenses $10,000

total budgeted selling and administrative expenses $285,800

3 0
3 years ago
Ordering cost only consists of the shipping cost from supplier to customer. True or False
Dennis_Churaev [7]

Answer:

False

Explanation:

Ordering costs are the costs incurred when materials are requested for. These components of this cost are:- 1)Clerical and administrative costs involved in purchasing and accounting for the goods ordered.

2)Cost of transportation

3)Retooling cost: This happens when the product is manufactured internally. Retooling means change of working tools.

4)Insurance while in transit.

5)Drivers' salaries and allowances

6)Loss of materials while in transit.

7)Taxes, custom duties and import duties.

3 0
3 years ago
Read 2 more answers
Which are results of regulation in a mixed-market economy? Check all that apply.
solong [7]

<u>Answer:</u> Option 1 and Option 5

<u>Explanation:</u>

In mixed economies under the government regulation most of the production is done by private ownership. There is very little government intervention. The main aim of the government intervention is to make sure that the private business activities comply with the law of the country.

Another result of government regulation is to control the externalities created by these business structures. Government ensures there is no externality which affects the market as well as the people. Due to these regulations there is no advantages for producer or government. Also the markets cannot be controlled with these regulations in mixed market economy.

8 0
4 years ago
Read 2 more answers
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