All categories

3 years ago

What are the five conditions that must exist for an exchange to occur?

Business

1 answer:

WARRIOR [948]3 years ago

5 0

Answer:

Please check below for answer.

Explanation:

Exchange can be defined as the process of providing goods and services by an individual or organization, to meet the needs of customers in exchange for an amount of money.

Hence, the five conditions that must exist for an exchange to occur are;

1. There must be at least two parties involved.

2. Each party has something that might be of value to the other party.

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the offer.

5. Each party believes it is appropriate or desirable to deal with the other party.

You might be interested in

If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, th

Digiron [165]

If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then the quantity of products will be growing and growing in the stock. this will again lead to a decrease in price and consumes more time to sale their stock. This will create a heavy loss to the investor. It may be overcome by innovative thoughts such as stopping the production of current product and launching a new product with available materials. So that it will balance the production and sale.

6 0

3 years ago

Steadigen Company sells two generators long dash Model A and Model Blong dashfor $ 432 per unit and $ 410 per unit, respectively

ch4aika [34]

Answer:

False

Explanation:

Contribution margin per unit = Sales - variable cost

Contribution margin per unit (Model A) = $432 - $404

Contribution margin per unit (Model A) = $28 per unit

Contribution margin per unit (Model B) = $410 - $304

Contribution margin per unit (Model B) = $106 per unit

False, Contribution margin per unit (Model B) is higher so, motivated to push sales of Model A will be false.

Break-even in units = Fixed cost / Contribution margin per unit

Break-even in units (Model A) = Fixed cost / $28

Break-even in units (Model B) = Fixed cost / $106

6 0

2 years ago

If a firm in a perfectly competitive market shuts down in the short run, it will:

Fittoniya [83]

Answer:

C. lose money equal to its total fixed costs.

Explanation:

The revenue of a firm in a perfectly competitive market depends on the forces of demand and supply. If such a firm consistently operates at a loss in the short run, it means that its price is lower than its average variable costs or revenues are lower than its total costs. If it shuts down, it won't be incurring variable costs but only lose money equal to fixed costs making choice C correct.

8 0

2 years ago

How many people are in the USA?

likoan [24]

Google the statistics

7 0

3 years ago

Read 2 more answers

Morganton Company makes one product and it provided the following information to help prepare the master budget:

Alex73 [517]

Answer:

$93,956

Explanation:

Morganton pays 30% of its raw materials purchases during the current month and the rest (70%) is paid in teh following month.

Raw materials purchases for June = $88,880: $88,880 x 70% = $62,216 paid in July.

Raw materials purchases for July = $105,800: $105,800 x 30% = $31,740

total cash disbursements related to raw materials = $93,956

total cost of raw materials for July

budgeted unit sales 10,000

- beginning inventory 2,000 units

+ desired inventory 2,400 units (20% of August's requirements)

units produced = 10,400

x 5 pounds of raw materials = 52,000 pounds

- beginning inventory of raw materials 5,200

+ ending inventory of raw materials 6,100 (10% of August's requirements)

total raw materials purchased 52,900 pounds

x $2 per pound

total raw materials cost for July $105,800

4 0

3 years ago