Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its ass
ets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should:
A) demand assurances of performance from the seller.
B) consider the contract repudiated and sue the seller for breach.
C) buy the equipment from a different firm and bill the seller for the price.
D) buy the equipment from a different firm and bill Excavation for the price.
<em>The controllable contribution of the divisional manager is the difference between the sales revenue and the costs controllable by the manager. It is a metric to measure the performance of a divisional manager</em>
The market economy adopts the concepts of a free market economy. It is also known as the free enterprise economy because it operates with no government interference. The government control on the factors of production is minimal.
In the market economy, entrepreneurs are free to decide what business to engage in and its location. They decide on the type and quantities of goods and services to provide. Buyers have the freedom to buy the products that please them. In a market economy, supply and demand forces determine the products to be supplied in the market.