Answer:
1. Many people do not trust businesses that sell products online, especially if they are not familiar with the company’s name. Yet they will walk into a new business in their city and shop with little concern. What causes the difference in people’s views of online businesses versus traditional businesses?
The idea of interactive with a non human entity as a computer make people feel acquard as they distrust what are the final intentions of the person behind the e-shop. They also feel fear as ther dont know where they can go to complain about some deal gone wrong.
2. Do you agree with Dontae that it is easier to shop in an actual store in a mall than from the same business online? Why or why not?
No, it is easier to buy online as the person do not need to expend the same time an energy in going and buying from a mall
3. What is your opinion of Jillian’s comparison between entering a credit card number online and handing the card to a clerk who checks it using a telephone line from the store to the credit card company?
I agree, it is the same as buying online, as the clerk could commit a crime as well as the person that is in the telephone.
Chapter 2 Discussion
4. What do you think of Toni’s idea of downloading music for free? Do you think this is legal? How can Toni be sure that she is engaging in legal and ethical behavior when she uses the freemusic site?
Is a good idea and it depends in the type of page you are browsing. If the internet page has a disclaimer saying that the music that is offering is free to download and is legal there is no unethical behavor in it.
Explanation:
Answer:
The both firms lose and the consumers gain
Explanation:
This scenario paints the picture of a Price war.
A price war is a competition strategy known by repeatedly cutting prices below those of competitors.
As a competitor lowers its price, then others will lower their prices to match.
Eventually, price wars are beneficial to the buyers who are consumers, who can take advantage of lower prices.
Price cutting is not good for any of the competing companies involved because the lower prices reduce profit margins and can threaten their survival.
If this practice of price reduction continues the monopoly profits are erased, and the smaller, more marginal or less efficient firms cannot compete and must close.
Answer:
Total cost to produce 50 oatmeal is $20
Explanation:
We have given average total cost to produce 100 oatmeal cookies = $0.25
So Total cost = 0.25×100 = 25
Total variable cost to produce 100 cookies = marginal cost×100 = 0.1×100 = 10
Total fixed cost to produce 100 cookies = total cost-total variable cost = 25-10 = $15
Total cost of producing 50 cookies
=total fixed cost + total variable cost
=total fixed cost +(marginal cost ×50)
=15+(0.1×20)
=15+5
=$20
Answer:
a. Increases asset
b. equity increased.
c. Assets increase and liability increased.
d. asset increase and liability increases.
e. Assets decreases and liability decreases
f. Assets increases
g. equity decreases
h. no effect
i. no effect
Explanation:
The transaction incurred by McKay & Company has impact on assets, liabilities and equity. The effect of each transaction is mentioned above. The transaction h and i will have no effect on the accounting equation. the cash received from the client increases cash but the receivables are reduced will off sets the assets side having no impact on accounting equation.