Answer:
He is legally expected to provide the space under the overconfidence trap
Explanation:
The landlord was overconfident about his judgment abilities and was quick to make the promise to provide the extra space without thinking of a wider range of possibilities. Thereby exposing himself to a greater risk than he imagined. The parole evidence is an evidence of oral speech. Since he admitted making the promise to Sarah, he is legally expected to provide the space.
Answer:
(i) $240, (ii) will buy, (iii) will not buy, (iv) True
Explanation:
(i)
Actuarially fair price = 2% of $12,000
= (2 / 100) * $12,000
= $240
(ii)
will buy insurance because now the price of insurance is $240 which was $2,880(i.e 72000 × 4% ) previously for drivers with $56,000 in the bank i.e now the price of insurance is reduced so the drivers will buy the insurance.
will not buy insurance because now the price of insurance is $240 which was $140 (i.e 3,500 × 4%) previously for drivers with 3,500 in the bank i.e now the price of the insurance is increased so the drivers will not buy.
True because at the actuarially fair price of $240, the drivers with $3,500 in bank will not voluntarily purchase the insurance.
Answer:
Sumner's has a loss of $-7750 from the sale of the equipment
Explanation:
Solution
Given that:
We compute the amount of profit and loss, few steps will be taken which is given below:
Step 1: we compute the book value of the equipment which is shown below:
Book value = purchase price - depreciation claimed
= $79,100 -$39,550
= $39550
Therefore then book value is $39,550
Step 2: we calculate the amount of Sumner's gain or loss which is shown below:
The gain (loss) is = the value (sale) - book value
= $31,800 - 39550
= -7750
Therefore the loss from the sale of the equipment is -$7750
Which implies that Sumner's has a loss of $-7750
Answer:
Widget Corp. most likely has a;
d. market orientation
Explanation:
In a competitive market, companies need to be more vigilant to have a large share of the market since there are many companies that are also fighting for the same market share. There are different strategies that can be used to achieve a higher market share, namely;
1. Market orientation: as the name suggests, this strategy aims at putting the business in the direction of the market. In simpler terms, it involves assessing customer and market needs then producing products that fit or satisfy the customer needs. In our case, Widget Corp. after studying the market determined that the current bulbs in the market did not meet customer needs as most customers needed smart bulbs. By designing smart bulbs to align with market needs, Widget Corp gained a market orientation.
2. Sales orientation: sales orientation is a set of business strategy that aims as persuading more people to buy than product rather than meeting customer needs. More emphasis is put on the forces that drive sales like advertising and marketing.
3. Production orientation: is all the activities aimed at building the product value as opposed to what the customer needs.
4. Promotional orientation:promotional orientation aims to grow and advance the product.
Answer:
PV of the sales price $1,986,948.23
Explanation:
We will calcualte the present value of the sale price using the present value of a lump sum formula:
Maturity 3,200,000
time 5 years
rate 10% = 10/100 = 0.1
PV $1,986,948.2338
This indicates the 3,200,000 in five years are equivalent to 1,986,948.23 dollars Thus, this investment is not profitable as the property will be purchased at 2,200,000
