Answer:
Novation
Explanation:
A novation is an agreement that is made between the two parties. In this, the one-party could take place or we can say the substituting of a new party could be done but the parties could ready for the novation
Here in the given scenario, since the Eric takes the place of Craig and its rights and duties are now with Eric
So this situation represents the novation agreement
Answer:
a. $24,000
b. $9,000
Explanation:
a. The amount of income or loss from the partnership is limited to the share of the loss rather than its partnership interest
In the given case, the partnership interest is $45,000 and the share of his loss is $24,000
So, $24,000 is reported in his individual income tax return
b. The computation of the Wilson's basis in his partnership interest is shown below:
= Basis in his partnership interest - share of the loss - cash distribution received from the partnership
= $45,000 - $24,000 - $12,000
= $9,000
Answer:
The correct answer is letter "C": music downloads and CDs are substitutes, and music downloads and MP3 players are complements.
Explanation:
Substitute goods or services are competitors. The use of one of them represents the replacement of the other. On the other hand, complementary goods are those that work better together. Typically, the demand in one of them is directly proportional to the demand of the other. It means, if more of product "A" is bought, more of product "B" will be purchased and vice versa.
Thus, <em>for Phil CDs and music downloads are substitutes while music downloads and MP3 players are complements.</em>
Answer:
The Global Economic Crisis
Factors that led to the Mortgage Crisis include all:
A) Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept interest rates really low to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices.
B) The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of collateralized securities.
C) Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMs)—were preferred by subprime borrowers.
D) Rating agencies, such as Moody's and Standard & Poor's, earned fees from securitizing agencies for providing ratings for CDOs. The securitizing agencies were looking for higher ratings for their CDOs, and the rating agencies were earning fees. This led to a conflict of interest; thus, ratings did not reflect the true risk involved in the CDOs, which were backed by mortgages.
Explanation:
Hedge funds, banks, and insurance companies helped to cause the subprime mortgage meltdown while regulators looked the other way. They were given free rein to construct so many complex securities which somehow contributed to the mortgage defaults with financial institutions skimming fees during the securitization processes, and mortgages were made accessible for borrowers who did not meet the income and minimum down payment requirements.
Answer: Secondary source of market research (external source)
Explanation: when an individual makes use of public information which have been collected by others in his or her research, such source is refered to as a secondary source. It is also called eternal source in market research, this can be gotten from company's websites, market research reports, trade publications etc. All this information can easily be accessible using the internet at small to no cost at all.
So Jamie made use of secondary source (external source) in his market research assignment.
