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mina [271]
3 years ago
10

Amanda is a twenty-four year old student. For two years Amanda has been going to gym and using weight equipment, stationary bicy

cles, and step machines to improve muscle tone. One spring afternoon Amanda was using a weight machines in the usual way (and the way she was showed how to use it), when the machine malfunctioned causing her serious injury. The company that made the machine, Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
If Amanda files a lawsuit against Musclematic, the company might want to seriously consider:

a. How this litigation will affect its goodwill
b. Whether or not a settlement with Amanda is a viable option
c. Whether this suit will adversely affect other business relationships
d. The costs associated with litigating this claim
e. All of the other choices
Business
1 answer:
Marta_Voda [28]3 years ago
7 0

Answer:

e. All of the other choices

Explanation:

Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.

In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.

So for any injury users have they will be liable.

If Amanda files a lawsuit against Musclematic they will have to consider:

- How this litigation will affect its goodwill

- Whether or not a settlement with Amanda is a viable option

- Whether this suit will adversely affect other business relationships

- The costs associated with litigating this claim

This is because they will most likely lose the case.

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A project has cash flows of -$152,000, $60,800, $62,300, and $65,000 for years 0 to 3, respectively. The required rate of return
Blababa [14]

Answer:

c. 11.32; reject

Explanation:

The IRR is the rate at with net present value equals zero.

-152,000 + \frac{60,800}{1+IRR} +\frac{62,300}{(1+IRR)^{2} } +\frac{65,000}{(1+ IRR)^{3} } = 0

\left[\begin{array}{cc}Period&Cash Flow\\0&-152,000\\1&+60,800\\2&+62,300\\3&+65,000\\4&0.113237029\\\end{array}\right]

To solve it you use excel or a financial calculator:

0.1132370

Because the IRR is lower than minimun aceptable rate of return, the project should be rejected.

7 0
3 years ago
Your company is considering two investments: buying 10% of the sharesin a publicly traded American company that owns five power
sesenic [268]

Answer:

First project

Explanation:

The 2 options/ project been considered:

1. Buying 10% of shares in a publicly traded american company that owns five power generation units in Pakistan

2. To be partner with equal share with one private company in building a new power generation unit in Pakistan

The first option/project would have a higher required return because:

<em>-  This company is already settled in the country having five power generation units in Pakistan. All these units are running and making profit.</em>

<em>-  Investment Option 2 is high riskier as we do not know the details of the new company and there are so many unforeseen circumstances surrounding establishing such project in the company. It will also take time to establish in order to start make it profitable.</em>

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Think about the videos you have watched. Why is there a need for government regulation, and what limits need to be placed on the
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Government regulations are necessary because they protect public safety and market fairness. For example, food safety regulations help protect consumers from pathogens that could cause widespread illness. By creating regulations, the government can make the food-borne illness less likely. However, even though these regulations are necessary, they must still meet constitutional requirements. Producers and consumers have the right to own and use property, among other constitutional rights.
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c. Emphasis on ethics

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