1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Valentin [98]
3 years ago
12

The buyer, seller and broker all agree that the buyer's money will be placed in an interest-bearing account because the buyer is

buying a commercial property that is scheduled to be rezoned in six months. The purchase price of the commercial property is $1.5 million so the interest for six months will be important at 8% interest. The parties agree that the broker is to receive the interest on the interest-bearing escrow account because he will be handling all the paperwork. Is this acceptable?
Business
1 answer:
Readme [11.4K]3 years ago
7 0

Answer:

The broker cannot do this since

Explanation:

There are two main errors in this proposal:

  1. the escrow account can be an interest bearing only if deposit 20% or less of the purchase price of the property. Apparently in this case the property was being sold at $1.5 million, so the escrow account should only hold $300,000 in an interest bearing account.
  2. second, real estate commissions forbid brokers and agents from receiving interest from an interest bearing escrow account unless they are the owners of the property (the sellers or lessors depending on the operation).

You might be interested in
business ethics chapter 4 friedman's view of the corporate world supports the rights of individuals to make money with their inv
alukav5142 [94]

Answer:

True

Explanation:

Because in Friedman's view making profit is the only social responsibility of the company. He said this because in his view the company has to earn profit for investments and if the company makes investments, it would create jobs and increased exports. So this means this is the best social responsibility in context of a economist, the company can pursue.

3 0
3 years ago
The monthly demand q for a monopolist firm's product in a certain market (measured in 1000s of units) is related to the price pe
Gnesinka [82]

Answer: (b) -3.08

Explanation:

The relationship between the demand(q), price per unit product(p) and the disposable income,yd is given by the expression below;

q= 20ln(7yd-2p).

From the expression above, the marginal demand,

∂ q/∂ p is the differential of the equation of relationship between the demand, price and disposable income.

This involves considering the demand,q as the dependent variable and the price per unit product,p as the independent variable and the disposable income,yd is considered constant.

Therefore ,

∂ q/∂ p= (-40)÷(7yd-2p)

By substitution of

yd =$3000÷1000= $3

and p= $4

∂ q/∂ p= (-40)÷((7×$3)-(2×$4))

∂ q/∂ p= -40÷13= 3.08

Please see the attachment for knowledge on how ∂ q/∂ p was obtained.

7 0
3 years ago
Marginal revenue:
natima [27]

Answer:

A. is the change in total revenues resulting from a change in output.

Explanation:

  • The marginal revenue is the additional revenue that can be generated by the addition of the sales of one more unit and by selling those additional units of the gods that will lead to change in the output and increase in the demand values of the product and services. And is equal to the price the company charges form the buyers.
5 0
3 years ago
On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100
sergij07 [2.7K]

Answer:

Please find the detailed answer as follows

Explanation:

The case is pretty simple, and I’ll to be simple in explanation below:

Facts:  

--Transfer price per unit should be atleast equal to the relevant cost per unit.

--Relevant cost per unit = Variable cost per unit + Contribution margin lost + Avoidable fixed cost.

--Since it is stated that fixed cost wont be affected and that there is idle capacity available, there wont be any ‘Contribution margin lost’ on outside sale AND ‘avoidable fixed cost.  

--If Division A transfers, it would transfer at the relevant cost of $ 19 per unit, which is equal to the variable cost per unit.  

--If Division A didn’t transfer, Division B will buy from outside at rate of $ 24 per unit.

Hence, Division B will purchase $ 24 per unit when it could get from Division A at $ 19.

Thereby, Division will be paying $ 5 per unit extra on 16100 units.

Division B and hence, the company as a whole will be WORSE by $ 80,500

[16100 units x $ 5 per unit]

Correct Answer = Option #3: Worse off by $ 80,500 each period.

The same is illustrated as attached image.

Download xlsx
7 0
3 years ago
Which one of the following statements is true?A) The current yield on a par value bond will exceed the bond's yield to maturityB
Tems11 [23]

Answer:

E) A discount bond has a coupon rate that is less than the bond's yield to maturity

Explanation:

A discount bond has a coupon rate that is below the bond's YTM this means that the bonds coupons or payments are lower than the Interest rate.

4 0
3 years ago
Other questions:
  • What amount do you need to invest to obtain $20,000 at 6 percent simple interest per year, after ten years?
    8·2 answers
  • Because of the open-air configuration of upscale specialty stores, coupled with entertainment and restaurants, ________ are very
    6·1 answer
  • 1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an a
    7·1 answer
  • An estate provides a perpetuity with payments of X at the end of each year. Seth, Susan, and Lori share the perpetuity such that
    14·1 answer
  • What is moral hazard? It refers to the actions people take before they enter into a transaction so as to mislead the other party
    9·1 answer
  • Assume the Macro Islands can produce 25 fishing boats or 150 jars of guava jelly in one hour. The Micro Islands can produce 30 f
    6·1 answer
  • To be valid and enforceable, insurance contracts must meet which general legal requirements?
    12·1 answer
  • You work as an assistant coach on the university basketball team and earn $13 per hour. One day, you decide to skip the hour-lon
    15·1 answer
  • Cora purchased a hotel building on May 17,.2018, for $3,000,000. Determine the cost recovery deduction for 2019.
    13·1 answer
  • Management is considering a one-time-only special order. There is sufficient idle capacity to fill the order without affecting a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!